Is Microsoft Warming Up to Motorola?

Microsoft’s (NASDAQ:MSFT) legal battles with Google (NASDAQ:GOOG) may take on a whole new complexion now that the latter has patent-rich Motorola Mobility under its belt.

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Given that Microsoft has already sewn up patent deals with some Android heavyweights such as Samsung, HTC, and Noble, it’s possible it might want to put an end to interminable legal battles with a no-pushover adversary such as Motorola (read: Google).

Both sides may in fact want to settle, given the huge legal cost and the continual risk overhang of an injunctive bar on product sales. To sum up their legal travails – both Microsoft and Google have won some patent battles, but neither is close to winning the war.

In fact, the two sides almost shook hands on a deal last year, but discussions collapsed suddenly and have been in limbo pending Google’s digestion of Motorola.

Microsoft may take heart from the legal pronouncements so far, and its likely stance may be to ensure that on a net basis, it receives the lion share of the licensing revenues.

Google is likely to be more in favor of a balanced cross-licensing deal that ensures an end to the legal fracas.

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