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Google, Samsung, Others Hit With 'Rockstar' Patent Suits

 & Chloe Albanesius Executive Editor, News

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A consortium of tech giants - who have dubbed themselves the"Rockstar Consortium" - have sued Google and more than a half dozen other rivals for violating Android-related patents.

The Google suit, filed Thursday in the infamous East Texas district court, accuses Google of violating seven patents related to technology that matches search terms with relevant advertising.

But the Rockstar Consortium - which includes Apple, Microsoft, BlackBerry, and Sony - also filed suit against Asus, HTC, Huawei, LG, Pantech, Samsung, and ZTE, all of which offer Android-heavy lineups. The firms are accused of infringing on patents that Rockstar acquired in 2011 from Nortel, which cover wireless, wireless 4G, data networking, optical, voice, Internet, service provider, semiconductors, and other patent portfolios.

Google made a play for those Nortel patents two years ago, ultimately bidding $4.4 billion to purchase them. This prompted objections from rivals like Microsoft, AT&T, and Verizon, who argued that the patents would give the search giant an unfair advantage. In the end, Google's major rivals joined forces to outbid the search giant at $4.5 billion.

A month later, Google accused Apple, Microsoft, and other tech giants of trying to "strangle" Android with the coordinated Nortel patent purchase, and pledged to "intensely" defend its mobile OS through patent purchases of its own and opposition to what it considers anti-competitive patent bids.

Shortly thereafter, Google acquired Motorola Mobility for $12.5 billion, a deal that included Motorola's patent portfolio.

Google and Samsung declined to comment.

Back in April, Google submitted comments to the Federal Trade Commission (FTC) that discussed what it believes are the dangers of patent trolls, or patent privateering.

"Trolls use the patents they receive to sue with impunity—since they don't make anything, they can't be countersued. The transferring company hides behind the troll to shield itself from litigation, and sometimes even arranges to get a cut of the money extracted by troll lawsuits and licenses," Matthew Bye, Google's senior competition counsel, wrote in a blog post. "Privateering lets a company split its patent portfolio into smaller sub-portfolios 'stacked' on each other, increasing the number of entities a firm must negotiate with and multiplying licensing costs. This behavior unfairly raises competitors' costs, ultimately driving up prices for consumers."

Ironically, Google's comments were submitted in conjunction with BlackBerry, which is part of the Rockstar Consortium now suing Google.

In a statement, consumer group Public Knowledge called the Rockstar Consortium a patent troll, and said the lawsuits highlight a dysfunctional patent system.

"Many of the patents asserted by Rockstar appear to be overly broad and of low quality," Charles Duan, director of Public Knowledge's patent reform project, said in a statement. "It is likely that its attempt to hobble its owners competitors in the courtroom will ultimately fail. But it will be expensive to reach that point, and whatever the outcome of the litigation, consumers will bear the cost."

The suits came the same day that Google formally released the next generation of Android, KitKat, as well as its newest flagship device, the Nexus 5. For more, see Google's Nexus 5: Nobody Does it Cheaper.

For more, check out PCMag Live in the video below, which discusses the Rockstar suit.

Editor's Note: This story was updated at 12:25 p.m. ET.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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