Verizon Hopes Google Deal Calms Patent Spats

Verizon Communications Inc. said Google Inc.'s $12.5 billion bid for Motorola Mobility Holdings Inc. was a welcome development because it may bring "stability" to a recent slate of smartphone patent disputes, though it stopped short of totally endorsing the proposed acquisition.

It was the first time a U.S. phone company publicly commented on the blockbuster deal. "We will be looking with interest as further details of the proposed transaction become clear," said John Thorne, Verizon's senior vice president and deputy general counsel. "But, at first glance, to the extent that this deal might bring some stability to the ongoing smartphone patent disputes, that would be a welcome development."

Verizon Wireless was the first U.S. wireless carrier to make a big bet on Google's Android software, and it relied heavily on Motorola's Droid smartphone lineup to combat the iPhone, which was exclusively distributed by rival AT&T Inc. for four years. Even though Verizon Wireless started selling the iPhone earlier this year, it has a lot at stake since it still distributes millions of smartphones from Motorola Mobility and other device makers that support the Android system. Verizon Wireless is the largest seller of Android phones in North America. In August, Verizon Wireless claimed about 41% of active Android phones in North America, compared to nearly 26% for Sprint Nextel Corp., 16% for T-Mobile USA and about 9% for AT&T Inc., according to a survey by Chitika, an online advertising provider. Google said it activates 550,000 Android devices daily.

(Aug 17)