Chinese PC maker Lenovo is set to buy Google’s Motorola for $2.9 billion but it may be able to use this acquisition only from a brand perspective to sell its smartphone as Google still has close to about 17000 patents that it got from Motorola buyout in 2011.
It is important to note that in the year 2011, Google agreed to buy Motorola Mobility for a consideration of $12.5 billion and now it is unloading the money-losing subsidiary on Chinese electronics maker Lenovo Group for $2.9 billion.
And now when Google has sold its brand to Lenovo, it will try its best to monetize the vast number of patents it has from Motorola.
Motorola has not been a profiting venture for Google and despite the fact that there were new phones unveiled last year in the form of Moto X and Moto G, the handsets did receive good reviews from critics but very few customers when compared to arch rivals Samsung or Nokia.
On the other hand, Chinese PC maker Lenovo, has been working hard to shine bright on the global smartphone map and this could very well ignite that spark needed to make an impact on global turf.
As per the deal with Lenovo, Google will maintain ownership of the vast majority of the Motorola Mobility patent portfolio, including current patent applications and invention disclosures. As part of its ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent assets, as well as the Motorola Mobility brand and trademark portfolio.
As far as market scenario is concerned, Lenovo ranked fourth in worldwide smartphone sales last year, despite having no major presence in the United States and Western Europe, according to IDC research data. Lenovo captured 4.5% of the market based on phones shipped, up from 3.3% in 2012. Samsung was first, with a 31% share, and Apple was second with 15% market share.
Moving forward, with Motorola’s brand intertwined with its manufacturing prowess, Lenovo could have a big chance to create the right ripples in the global smartphone sector.
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