The Google-Moto Losers: InterDigital & Kodak (GOOG, MMI, IDCC, EK)

The news is full of reports that Google Inc. (NASDAQ: GOOG) is acquiring Motorola Mobility Holdings, Inc. (NYSE: MMI).  Most stories discuss the hardware aspect, but perhaps the more important aspect is the patent aspect.  Google is effectively buying some 24,000 or so patents in the Motorola Mobility acquisition.  The patent acquisition process is the real story here.

There is one big loser in this deal and that is InterDigital, Inc. (NASDAQ: IDCC).  This is a company that had been thought to be a potential Google acquisition target due to its diverse patent portfolio.  The company designs and develops wireless technology solutions from 2G, 3G, 4G, and other wireless aspects.

InterDigital’s website has an entire sector dedicated to its patents and it noted the following:

• “Our know-how and inventions reach across virtually all mobile and wireless devices. InterDigital holds approximately  8,800 U.S. and foreign issued patents combined. In addition, we have almost 10,000 patent applications in process around the world. Our success in increasing the pace and breadth of our innovation business reflects our fundamental commitment to remain an industry leader in the creation of pioneering wireless technologies. We have a comprehensive program of developing and protecting our intellectual property through the worldwide filing and issuance of our patents… InterDigital’s licensing practices are considered exemplary by licensing and industry experts. In 2006, in recognition of our licensing program success, InterDigital received the prestigious Licensing Achievement Award from the Licensing Executives Society.  The company is also a founding member of the Innovation Alliance- a coalition of entrepreneurial companies seeking to enhance America’s innovation environment by improving the quality of patents granted and protecting the integrity of the U.S. patent system.”

InterDigital shares are down 17% at $62.50 this morning on active trading right after the open and its 52-week trading range is $24.39 to $82.50.

Another loser could be Eastman Kodak Co. (NYSE: EK) as it also has part of its patent portfolio up for sale.  How this ties in is literally anyone’s guess at the moment, but about all that Eastman Kodak does have going for it is its embedded call option that is its patent portfolio for aspects of imaging around the wireless ecosystem.  Eastman Kodak shares are down 1% at $2.05.

JON C. OGG