Motorola

As first reported by the New York Times, Google-owned Motorola is cutting 4,000 jobs, or roughly 20-percent of its workforce, in the hopes of becoming profitable again. The news was confirmed in a U.S. Securities and Exchange Commission filing released this morning just before the markets opened. Google/Motorola further noted in the filing that it would consolidate 30 of its 90 facilities and “shift its emphasis from feature phones to more innovative and profitable devices.” Two-thirds of the job cuts will occur outside of its U.S. facilities.

Google’s $12.5 billion acquisition of Motorola was officially completed in May, after news of the acquisition was announced in August 2011. The deal went through many regulators before becoming official. Google is said to have acquired the company for its large portfolio of over 17,000 patents, and the company has reassured time-and-time again that it will keep Motorola running as a separate entity but will use Motorola’s large patent portfolio to protect its Android operating system.

Fueling the job cuts, Motorola has not been profitable the last 14 out of 16 quarters—even with popular smartphones like the Motorola DROID RAZR and RAZR HD on the market. Since the acquisition was completed in May, Motorola’s CEO Sanjay Jha stepped down from his post with as many as five other Motorola executives. Motorola also announced last week that it is moving its headquarters from suburban Illinois to downtown Chicago, signaling a major overhaul in the company. As major company changes occur, Google warned “investors should expect to see significant revenue variability for Motorola for several quarters” and the company will lose roughly $275 million from the cuts and closures.

However, Motorola hopes to someday turn to profitability. [WSJ via NYT]

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Microsoft is no stranger to signing up Android vendors to licensing agreements. Most of the major Android device manufactures are already paying the company royalties, and Microsoft is currently involved in various cases with Motorola in the U.S. and elsewhere. The latest from Microsoft’s intellectual property group is a statement posted by the group’s head Horacio Gutierrez and Microsoft General Counsel Brad Smith (via AllThingsD). In a message titled “A Solid Foundation for Peace”, Microsoft explained its willingness to negotiate a settlement of its current litigation with Motorola:

Microsoft has always been, and remains open to, a settlement of our patent litigation with Motorola. As we have said before, we are seeking solely the same level of reasonable compensation for our patented intellectual property that numerous other Android distributors – both large and small – have already agreed to recognize in our negotiations with them. And we stand ready to pay reasonable compensation for Motorola’s patented intellectual property as well.

However, within the post, Microsoft also noted its requirements for reaching a settlement over its various Android-related patent cases with Motorola—which include a comprehensive agreement covering all patents in question:

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A new report from The Wall Street Journal today, citing an SEC filing, noted Google has put an exact value on the patents acquired in its purchase of Motorola Mobility. In the filing, Google claimed “patents and developed technology” acquired in the deal were valued at $5.5 billion—less than half of the $12.4 billion Google paid for the company.

Google also broke down the rest of the purchase price in the SEC filing:

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As noted in a report from Ars Technica, the ITC’s import ban on Motorola Android devices is set to kick in tomorrow. It covers 18 Motorola products infringing patents related to Microsoft’s Exchange Active Sync technology. Motorola, of course, has the option to pay Microsoft to license the patent, as it has in the past, but the company told Ars in a statement that it plans to continue selling its flagship devices in the U.S. following tomorrow’s ban:

“In view of the ITC exclusion order which becomes effective Wednesday with respect to the single ActiveSync patent upheld in Microsoft’s ITC-744 proceeding, Motorola has taken proactive measures to ensure that our industry leading smartphones remain available to consumers in the US,” Motorola said. “We respect the value of intellectual property and expect other companies to do the same.”

The following Motorola devices are covered by the ITC ruling: the Motorola Atrix, Backflip, Bravo, Charm, Cliq, Cliq 2, Cliq XT, Defy, Devour, Droid 2, Droid 2 Global, Droid Pro, Droid X, Droid X2, Flipout, Flipside, Spice, and Xoom.

Ars also received a statement from Microsoft’s Deputy General Counsel David Howard:

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A German court ruled this morning that the Android-powered tablet does not violate the patented look of Apple’s tablet. The Duesseldorf court discarded one claim by the Google-owned manufacturer, however, about the iPad’s design patent being inapplicable.

FoxBusiness explained:

• Apple initially sued Motorola for allegedly infringing three iPad designs with the Xoom. It sought to have the device banned across Europe.
• Although the judges ruled Motorola’s Xoom doesn’t infringe on the iPad, the court rejected a counterclaim brought by Motorola alleging the iPad’s design patent is invalid, a spokesman for the court said.
• As the court ultimately rejected both parties’ claims, it ordered Apple to pay two-thirds of costs and Motorola to pay a third, the spokesman added.
• […] During two hearings prior to the ruling, the presiding judge had indicated the court was leaning in Motorola’s favor. Judge Johanna Brueckner-Hofmann said in March that the court considered the evenly bent back and shaped edges on the front of the Xoom tablet sufficient to give the product individual character.

Apple is also suing Motorola in a Mannheim court for allegedly breaching a patent on multi-touch enabled devices.

Get the full report at FoxBusiness.

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[youtube=http://www.youtube.com/watch?v=ESzIQiEK9AU&feature=youtu.be]

Motorola announced its much-rumored Atrix HD today exclusively for AT&T’s LTE network.

The smartphone, previously codenamed “Dinara” among the blogosphere, sports a Kevlar backing and 8.4mm-thick body, while the specs include a 1780mAh battery, 1 GB of RAM, 8 GB of internal storage, and a 4.5-inch, 720p HD display with Motorola’s ColorBoost. It also boasts a rear-facing 8-megapixel camera that shoots 1080p, 30 fps video, and it even comes quipped with an HDMI-out port.

This $99.99 device, on a two-year contract, sports Android 4.0 Ice Cream Sandwich right out of the gate. Oh, and it arrives July 15 in Modern White and Titanium flavors.

The press release is below (via MarketWatch).

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Reuters interviewed the U.S. judge today who dismissed Apple’s patent court case against Motorola, and the details behind the jurist’s reasoning for tossing the lawsuit are as interesting as they are controversial.

Richard Posner sits on the 7th U.S. Circuit Court of Appeals in Chicago and disputes whether software and related tech industries should even have patents for their products.

“It’s not clear that we really need patents in most industries,” said Posner, referring to the slew of features in smartphones that are legally protected. “You just have this proliferation of patents. It’s a problem.”

Posner, 73, argued the pharmaceutical industry better deserved protection for its intellectual property because of the, as Reuters coined it, “enormous investment it takes to create a successful drug.” He tossed Apple’s lawsuit against Google’s Motorola Mobility last month and denied an injunction against the sale of Motorola devices using Apple’s patented technology.

The judge attributed Apple’s scramble to attack competitors allegedly using its technology to a “constant struggle for survival.”

“As in any jungle, the animals will use all the means at their disposal, all their teeth and claws that are permitted by the ecosystem,” Posner contended.

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William Blair analyst Anil Doradla (via Barron’s) wrote in his notes today that the iPhone is still the best-selling smartphone across the United States, but it is coming “under pressure, particularly at Verizon” due to the carrier’s aggressive marketing of 4G-capable devices. Citing his checks of sales for the current quarter as of June, Doradla claimed the Motorola Droid RAZR MAXX outsold the iPhone on Verizon:

Since Apple’s iPhone launch in North America, we believe this was the first quarter where the iPhone was not the best‐selling smartphone at a North American mobile operator (where it was available). While Apple continued to maintain its top position at AT&T and Sprint, Motorola’s Droid RAZR MAXX was the best‐ selling smartphone at Verizon. Our checks also indicate that at this stage consumers are not pausing in front of the iPhone launch as it is not influencing their purchasing decisions (but we expect it to start impacting over the next couple of months).

While the RAZR MAXX took the top spot, Samsung’s Galaxy Nexus grabbed third position behind the iPhone, according to Doradla. He backed his “outperform” rating on Apple by saying he is “not worried” given the next generation iPhone, which is likely due in October, is expected to include 4G LTE capabilities:

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Motorola announced its Dinara smartphone— officially known as the “xT928” – for China Telecom last November, but a supposed press leak of the AT&T variation just surfaced stateside.

The Verge received a media shot of the rumored device today (above). As the report noted, the assumed Atrix 2 successor boasts a 720p display, Android 4.0 Ice Cream Sandwich, and 4G LTE. The notable feature, however, is not really a feature at all: the Dinara lacks physical home buttons on the front display. Much is unknown about the smartphone this point; even its name is not set in stone. However, the “July 26” stamp within the date widget might finally give a hint as to when this device will launch.

Google closed its $12.5 billion Motorola Mobility acquisition last Month when China gave the merger an overdue go-ahead. Motorola promptly filed an 8-K form with the U.S. Securities and Exchange Commission, and the deal’s transaction finalized shortly after. It appears the Dinara’s software and user-interface is unaffected by the recent Google buyout and will likely sport a Motoblur flavor.

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Image <a href="http://www.google.com/imgres?um=1&hl=en&safe=off&sa=N&biw=1443&bih=1024&tbm=isch&tbnid=3642QYSvxzGrcM:&imgrefurl=http://softsupplier.com/motorola-could-ban-xbox-and-windows-7-in-germany-116254/&docid=qRX9o3-WG3oxWM&imgurl=http://softsupplier.com/wp-content/plugins/jobber-import-articles/photos/135951-motorola-could-ban-xbox-and-windows-7-in-germany-2.jpg&w=640&h=480&ei=KF68T_20B-3G6AGOpIw9&zoom=1&iact=hc&vpx=712&vpy=557&dur=4896&hovh=194&hovw=259&tx=166&ty=137&sig=110833262350628042404&page=2&tbnh=159&tbnw=217&start=28&ndsp=36&ved=1t:429,r:3,s:28,i:144" target="_blank">via</a> Phandroid

An administrative law judge for the United States International Trade Commission has recommended a ban on Xbox gaming consoles from importing stateside.

According to the recommendation (PDF), which publicly released yesterday, the U.S. ban of 4 GB and 250 GB consoles would essentially penalize Xbox’s manufacturer, Microsoft, for allegedly infringing on Motorola’s patents. ArsTechnica noted the patents under dispute concern video transmission and compression on the Xbox and between controllers.

“[…] It is recommended that the Commission enter a limited exclusion order against infringing Microsoft products. It is further recommended that the Commission issue a cease and desist order. Additionally, it is recommended that Microsoft be required to post a bond for importation of accused products during the Presidential review period,” stated Administrative Law Judge David P. Shaw in the public recommendation.

Courthouse News emphasized that the bond sum suggested by the judge would equal to 7 percent of Xbox’s unsold inventory value already present in the country.

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Google’s CEO Larry Page made headlines again this morning: He just officially announced Google’s acquisition of Motorola Mobility, while confirming the joined companies will soon create the next generation of mobile devices.

The chief executive took to the official Google Blog to reveal the news:

It’s why I’m excited to announce today that our Motorola Mobility deal has closed. Motorola is a great American tech company that has driven the mobile revolution, with a track record of over 80 years of innovation, including the creation of the first cell phone. We all remember Motorola’s StarTAC, which at the time seemed tiny and showed the real potential of these devices. And as a company who made a big, early bet on Android, Motorola has become an incredibly valuable partner to Google.

Page appointed Googler Dennis Woodside as CEO of the newly acquired business, and claimed he has known the exec for over a decade, while adding, “He’s been phenomenal at building teams and delivering on some of Google’s biggest bets.”

The post is quick and to-the-point. The most important aspect to it, however, is the last line: “[…] I’m confident Dennis and the team at Motorola will be creating the next generation of mobile devices that will improve lives for years to come.”

That’s right. Google is now a hardware company.

Google made headway on the $12.5 billion Motorola Mobility acquisition late last week when China finally gave the merger a go-ahead. Motorola promptly filed an 8-K form with the U.S. Securities and Exchange Commission yesterday that specified the deal’s transaction would likely close today.

Check out the full announcement below—or jump over to Google’s blog. 

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Motorola just tweaked its Android Software Upgrade timetable for Ice Cream Sandwich updates, and it looks like both the United States-based Droid Razr and Razr Maxx are getting Android 4.0 in the second quarter.

The Xoom 3G model is also eyeing an ICS rollout in the same quarter, while the 8.2-inch and 10.1-inch Xyboard, Droid Bionic, and the Droid 4 are upgrading to the latest and current Android OS in Q3 2012. These devices were once listed under “Evaluation & Planning” when Motorola last altered the timetable in February.

It is worth noting the rollout dates could change once Google’s buyout of Motorola completes. Check out the manufacturer’s Motorola Android Software Upgrade News website for a full chart of slated ICS promotions.

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With Samsung’s official unveiling of its next flagship smartphone earlier this month, we are now getting some insight into the Galaxy S III’s battery life courtesy of GSM Arena. The publication took the I9300 Galaxy S III, and its 2100 mAh battery, and put it to the test in a number of benchmarks. The results included: 10 hours and 20 minutes of continuous talk time with the display off; 5 hours and 17 minutes of web browsing; and, over 10 hours of continuous video playback. As you can see from the images of the results above, the S III was just behind Motorola’s Droid Razr Maxx on video playback and talk time. However, web browsing puts it at No. 14 behind competitors thanks to its AMOLED display.

The report explained that with the device’s stand-by endurance rating of 43h, you would “need to charge the monstrous smartphone once every 43 hours if you do an hour of 3G talking, video playback and web browsing per day.”

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According to a report from Chicago Business (via The Verge), Google is considering moving Motorola Mobility’s main offices to Chicago. The report claims sources have confirmed the company is looking for 500,000 square feet of office space in downtown Chicago that could house up to 3000 employees, more than enough room for Motorola’s new headquarters. The report said those 3,000 employees would likely be relocated from Motorola’s current Libertyville HQ, but not involve those from its River North location:

Among the handful of sites under consideration are upper floors of the landmark Merchandise Mart in River North and Fulton Market Cold Storage, a large warehouse that’s slated for redevelopment in the West Loop, according to a source familiar with the matter… Top real estate executives from Google’s Mountain View, Calif., headquarters have toured several downtown sites over the past several month.

ChicagoBusiness said acquiring the property is still dependant on Google completely closing the acquisition with approvals from regulators in China. Apart from its main campus in Mountain View, Google is no stranger to downtown offices with about 3,000 employees currently calling downtown Manhattan home at the company’s second largest World offices.

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According to a report from Reuters, a judge in Mannheim ruled against Microsoft today in an ongoing patent dispute with Motorola Mobility by ordering the company to remove its Xbox 360 and Windows 7 products from German retailers. In response, Microsoft claimed that Motorola is unable to enforce the court’s decision due to a prior ruling granting Microsoft a preliminary injunction in a U.S. court:

“Motorola is prohibited from acting on today’s decision, and our business in Germany will continue as usual while we appeal this decision and pursue the fundamental issue of Motorola’s broken promise.”

Today’s ruling means Judge Holger Kircher has decided Microsoft broke contracts by using video-compression software covered in Motorola patents in its Xbox and Windows products. As noted by Reuters, the ITC last week ruled that Microsoft infringed on different Motorola patents covering both video compression and wireless technologies. European Union regulators have apparently started several investigations on how much Motorola charges competitors to license its patents because of the court’s decision and previous complaints from Apple, Microsoft, and others.

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According to a report from Bloomberg, U.S. International Trade Commission Judge Thomas Pender has ruled in favor (PDF) of Motorola and claimed Apple’s devices infringe on one Android-related patent owned by the company. The ruling is only a partial victory for Motorola’s attempt to receive an injunction on iPhones and iPads, because the judge’s decision will still have to be reviewed before import blocks can be achieved:

ITC Judge Thomas Pender said Apple violated one of four Motorola Mobility patent rights. The patent relates to Wi-Fi technology. The judge’s findings are subject to review by the six-member commission, which has the power to block imports that infringe U.S. patents.

As for the Wi-Fi patent in question (# 6,246,697), Apple spokesperson Kristin Huguet told AllThingsD that Motorola refused to license its industry-standard technology on “reasonable terms”:

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Engadget shows us something it pulled from Chinese language forums:

What you see on the right is called the Droid RAZR “Fighter,” and it has a 4.6-inch 720P display much like HTC’s 4.7-inch One and the 4.65-inch Galaxy Nexus.

You will note that it does not have physical capacitive buttons, instead opting for the ICS-y soft buttons. That allows Motorola to push the screen further toward the edges, which is something we complained about in our review.

The smaller bezel and lack of physical buttons allows Motorola to break out a much bigger screen without increasing the footprint…much.

Other probabilities: LTE on board, lots more graphics power, and Ice Cream Sandwich.

Hopefully the Google buyout of Motorola cuts through the blur, but as with all Verizon phones, you will expect that Verizon will have its way with ICS.

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