Back to top

Analyst Blog

Recently, Motorola Mobility Inc. (MMI) received a favorable ruling from the International Trade Commission (ITC) relating to a patent infringement case against Microsoft Corp. (MSFT - Analyst Report). The ITC ruled that Motorola did not violate six of the seven alleged patent rights of Microsoft.

Earlier in October 2010, Microsoft had filed a lawsuit against Motorola alleging wrong usage of its nine patented technologies. However, Microsoft withdrew two patents from the alleged nine during the court proceedings.

Microsoft's patented technology allows mobile handset users to schedule conferences on handsets. Microsoft complained that Motorola breached this technology and integrated it on their Android-based smartphones.

In response to Microsoft's litigation, Motorola countersued Microsoft for infringing at least 25 of its patents. Motorola claimed that Microsoft has violated their patents on different technologies including the popular Xbox 360 and the Windows Phone 7 operating system. The case is under review at the ITC and the decision is expected in spring 2012.

Recently, Motorola Mobility also received another favorable ruling from the court in Manheim, Germany regarding infringement of its GPRS technology by Apple Inc. (AAPL - Analyst Report).

Presently, Motorola Mobility holds rights for approximately 24,000 patents, which places it in an advantageous position as the mobile handset manufacturers like Apple, Samsung and HTC continue to accuse each other of patent infringements.

However, we believe that the company's recent merger plans with Google Inc. will spurt apprehension in the smartphone market as most handset manufacturers use Google's popular Android operating system in their smartphones.

We, thus, maintain our long-term Neutral recommendation on Motorola Mobility Holdings Inc. Currently, Motorola Mobility Holdings Inc. has a Zacks#3 Rank, implying a short-term Hold rating on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%