Google Inc (NASDAQ:GOOG) is the biggest threat for Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) — especially as the internet giant dominates every market segment and area it enters.
With the introduction of Google’s Android, there were a lot of expectations the tech giant would grow even bigger. However, the scenario is different now as Google faces several patent holders over the unauthorized use of patented algorithms within Linux kernel for its Android operating system.
So far, Google was penalized up to $5 million in Texas regarding infringed patented algorithm. This could result in higher costs for all smart phone manufacturers as they would have to pay fees to use Android as an operating system.
Another option is to switch to operating systems from Microsoft (NASDAQ:MSFT) and Nokia Corp. (NYSE:NOK). Apple (NASDAQ:AAPL) won’t care because it does not rely on the Android system for their iPhones. In fact, Steve Jobs’ baby has actually benefited from the patent infringement news as Android may have some serious stumbling blocks for their business model.
Oracle Corporation (NASDAQ:ORCL) is also filing a lawsuit against Google for unauthorized use of its Java within Android. Larry Ellison is definitely taking Sun Tzu’s advice on this one.
Already we seem to be witnessing the aftermath of Google’s recent legal troubles. Shares of Google (NASDAQ:GOOG) have dropped almost $50 a share since reporting earnings. On the other hand, Apple (NASDAQ:AAPL) shares have been exploding higher since earnings. Let’s see if the patent trolls continue raiding Google’s coffers.