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Google, Microsoft end phone/Xbox patent battle, agree to cooperate

Sep. 30, 2015 5:30 PM ETAlphabet Inc. (GOOG) StockGOOG, MSFT, GOOGLBy: Eric Jhonsa, SA News Editor6 Comments
  • Google (GOOG, GOOGL) and Microsoft (NASDAQ:MSFT) have ended a long-running patent spat involving about 20 suits in the U.S. and Germany. Financial terms are confidential.
  • Microsoft, which collects royalties from Samsung, HTC, and many other Android OEMs, had alleged Google's former Motorola Mobility unit (sold to Lenovo) infringed its IP. Google, which held onto most of Motorola's patents following the Lenovo deal, alleged Xbox consoles infringed its patents.
  • Much like Google/Motorola's settlement with Apple last year, the Microsoft deal comes with an agreement to cooperate on various patent issues. The tech giants plan to work on a royalty-free video codec meant to improve download/streaming speeds - Amazon and Netflix also back the effort - and lobby for a unified European patent system.
  • Separately, in a move that could partly be a response to ad-blockers, Google states its display ad network will now only charge advertisers for ads that are 100% viewable by by users. The company estimates 56% of display ads "never had a chance to be viewed because they were below the fold, scrolled out of view, or in a background tab."
  • Concerns about ad-blockers have grown following the recent launch of iOS 9, which supports blockers for Mobile Safari. JPMorgan has downplayed those concerns, arguing most ad-blocking takes place on desktops, that far more time is spent on mobile apps (largely immune to ad-blocking for now) than browsers, that publishers are starting to withhold content from those using ad-blockers, and that ad spend is shifting towards formats more immune to ad-blocking (e.g. native ads). The firm is concerned, however, about the fact ad-blockers prevent valuable tracking data from being collected.

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