Google Will Provide Fair Licensing After Motorola Merger

Google (NASDAQ:GOOG) is expected to announce today that it has every intention to license Motorola’s (NYSE:MMI) patents in accordance with fair, reasonable, and nondiscriminatory terms (better known as FRAND).

Google announced its plan to purchase Motorola for $12.5 billion back in August, expressing particular interest in its rich patent portfolio. Google has stated that the handset provider will continue to be operated as a standalone company. Google, which makes and licenses the Android mobile operating system, has been the target of many lawsuits over the past few years from companies accusing them of patent infringement.

The announcement is likely to assuage concerns from European regulators, with whom final approval of the merger is currently pending. According to The Wall Street Journal, Motorola’s competitor Apple (NASDAQ:AAPL) has sent its own letter to the European Telecommunications Standards Institute. In the letter, Apple reportedly asks that the governing body devise basic licensing guidelines among member companies, and encourages the implementation of consistent patent licenses and appropriate royalty rates. Apple, of course, offered its own suggestions for those rates.

Apple and Motorola have collided many times on patent issues in various courts around the world, with the most notable incidence being a German court decision forcing Apple to stop selling older iPhones in its German online store. That ban was later lifted. A decision about the fate of the merger between Google and Motorola is expected by next week.

Here’s how these stocks are trading on the news:

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $609.04, up $2.27, or 0.37%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 1,294,508 shares versus a 3-month average volume of 3,041,260 shares. The company’s trailing P/E is 20.47, while trailing earnings are $29.76 per share.

Motorola, Inc. (NYSE:MMI): MMI shares recently traded at $38.92, up $0.04, or 0.1%. They have traded in a 52-week range of $20.77 to $39.20. Volume today was 3,362,592 shares versus a 3-month average volume of 3,611,170 shares. The company’s trailing earnings are $-0.84 per share.

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $473.19, up $4.36, or 0.93%. They have traded in a 52-week range of $310.50 to $469.75. Volume today was 9,103,032 shares versus a 3-month average volume of 12,422,700 shares. The company’s trailing P/E is 13.47, while trailing earnings are $35.14 per share.

To contact the reporter on this story: Jonathan Morris at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com