Google Inc. (GOOG) Exec: Patent Wars Hurt Consumers, Innovation

Google Inc.Google Inc. (NASDAQ:GOOG) executive Eric Schmidt did not mince many words (a few, but not many) when it came to discussing the many patent lawsuits that are being contested in the mobile device industry. At a recent event in South Korea to announce the launch of the Google Inc. (NASDAQ:GOOG) Nexus 7 tablet in South Korea, the home base of top Android operating system partner, Samsung Electronics Co. Ltd.

Speaking at the launch event, Schmidt discussed the patent battles that Google Inc. (NASDAQ:GOOG) has been involved with – via its partners like Samsung, HTC and Motorola Mobility – against Apple Inc. (NASDAQ:AAPL) over intellectual property.

“Literally patent wars prevent choice, prevent innovation and I think that is very bad. We are obviously working through that and trying to make sure we stay on the right side of these issues. So ultimately Google stands for innovation as opposed to patent wars,” Schmidt said. “I think one of the worst things that happened in the last few years has been the belief that somehow there are so many patents in the mobile phone world, an estimated 200,000 that are overlapping and complicated and so forth, that one vendor can stop the sale of another vendor’s phones or devices.”

Schmidt went on to say that he believes that all of these battles will limit innovation and provide fewer choices for consumers, and he believes that Google Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT) and others should be able to compete with products and designs and features in the marketplace, and let the consumers decide the amount of competition – instead of judges and juries.

And when it comes to Apple patents, Schmidt offered, “With respect to Apple patents, the best thing we can tell there are plenty of prior arts and I don’t want to go beyond that.” however, Schmidt pivoted on Apple Inc. (NASDAQ:AAPL), saying that the company “is actually a very good partner. Our two companies are literally talking all the time about everything.”

Whether they talk about patents, of course, may be only conjecture. But for observers of Google Inc. (NASDAQ:GOOG) and investors in Google stock –  like hedge-fund manager Chase Coleman of Tiger Global Management LLC – are Schmidt’s words true? Do consumers and the industry suffer from all these patent battles, or is this healthy for the tech landscape?

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!