Last Monday, Google agreed to acquire Motorola Mobility Holdings Inc. for approximately $12.5 billion. The acquisition includes Motorola Mobility's portfolio of more than 17,000 patents and 7,500 pending patent applications as well as its hardware manufacturing operation. Google intends to run Motorola Mobility as a separate business that will remain a licensee of Google's Android operating system. It is not clear how the deal will impact Google's relationship with other Android partners, including HTC Corporation, LG Electronics, Inc. and Samsung Electronics Co. The parties have submitted the required paperwork to the Department of Justice and the Federal Trade Commission, leaving DOJ and the FTC to determine which will have primary jurisdiction to review and approve the proposed merger. The transaction is scheduled to close in early 2012 and has already been approved by the boards of both companies. Please contact Doug Jarrett with questions.
"A compelling motive for Google acquiring Motorola Mobility may be to monetize Android by emulating Apple in offering wireless products combining innovative hardware and software," -Doug Jarrett, Partner, Keller and Heckman LLP
The GPS Industry Continues to Challenge LightSquared over Interference
Last Monday, the GPS industry filed reply comments challenging LightSquared over the scope of potential interference to GPS signals caused by the company's service in the lower part of the L-band. The Coalition to Save Our GPS claimed that LightSquared failed to address significant interference findings of the FCC's Technical Working Group and also ignored the impact of problems its operations in the lower portion of the L-band will create on GPS systems. In its own reply comments, LightSquared reiterated its request to begin service in the lowest 10 MHz of the L-band and complained that GPS manufacturers are unwilling to cooperate by implementing filter technology that is available to mitigate these interference issues. More than 3,200 filings have been submitted to the Commission largely opposing LightSquared's proposed operations because of interference concerns. Please contact Greg Kunkle with questions.
FCC Enforcement Bureau Remains Active Against Private Licensees
Last week, EDS Spectrum and its parent company, Hewlett-Packard, entered into a Consent Decree with the FCC ending an investigation into whether EDS transferred control of FCC licenses without securing the Commission's prior consent. The Consent Decree requires the companies to make a $60,000 "voluntary contribution" to the U.S. Treasury, complete a thorough review of the companies' FCC licenses and create a database with information regarding all FCC licenses held by corporate entities controlled by H-P. This Consent Decree serves as the most recent reminder to licensees that the Commission's prior consent is required to assign or transfer control of FCC licenses as part of a corporate merger or acquisition. Please contact Wes Wright with questions.
FCC Licensing Tip of the Week
Last week, the Commission announced that the Universal Licensing System has been modified and licensees may now include aircraft station licenses on assignment and transfer of control applications. Please contact Tim Doughty for assistance with construction filings.
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