Thursday, August 29, 2013

Moto X Phone built in USA to work around patent lawsuits

The Moto X Phone is being built in the USA in order to promote American jobs, according to Motorola and parent company Google. But another more strategic reason is behind the move as well.

 Apple has sued every Android vendor, many of them successfully, on the grounds that their phones violate Apple’s patents.

 And while the verdicts have sometimes given Apple monetarist compensation, its real goal is to get “copycat” Android devices banned from the marketplace altogether.

 One way to reach this goal is to petition the International Trade Commission to ban the import of phones from their factories in Asia into the United States.

 But by assembling the Moto X Phone in America to begin with, Motorola keeps the ITC from having any jurisdiction.

Apple has been careful not to sue Google directly, even as it’s destroyed Android partners like Samsung in the courts. But Google’s new first hand foray into Android hardware with the Moto X Phone may bring Apple to sue Motorola (and Google by extension) if it feels the Moto X is too close of an iPhone derivative.

A victory for Apple in U.S. court could still halt sales of the Moto X here. But by building the Moto X Phone in the USA and thus keeping it from technically being an imported product, Motorola closes one legal avenue for Apple by taking the ITC out of the equation.