Aug 3, 2011
When patents attack Android
I have worked in the tech sector for over two decades. Microsoft and Apple have always been at each other’s throats, so when they get into bed together you have to start wondering what's going on. Here is what’s happening:
Android is on fire. More than 550,000 Android devices are activated every day, through a network of 39 manufacturers and 231 carriers. Android and other platforms are competing hard against each other, and that’s yielding cool new devices and amazing mobile apps for consumers.
But Android’s success has yielded something else: a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents.
They’re doing this by banding together to acquire Novell’s old patents (the “CPTN” group including Microsoft and Apple) and Nortel’s old patents (the “Rockstar” group including Microsoft and Apple), to make sure Google didn’t get them; seeking $15 licensing fees for every Android device; attempting to make it more expensive for phone manufacturers to license Android (which we provide free of charge) than Windows Phone 7; and even suing Barnes & Noble, HTC, Motorola, and Samsung. Patents were meant to encourage innovation, but lately they are being used as a weapon to stop it.
A smartphone might involve as many as 250,000 (largely questionable) patent claims, and our competitors want to impose a “tax” for these dubious patents that makes Android devices more expensive for consumers. They want to make it harder for manufacturers to sell Android devices. Instead of competing by building new features or devices, they are fighting through litigation.
This anti-competitive strategy is also escalating the cost of patents way beyond what they’re really worth. The winning $4.5 billion for Nortel’s patent portfolio was nearly five times larger than the pre-auction estimate of $1 billion. Fortunately, the law frowns on the accumulation of dubious patents for anti-competitive means — which means these deals are likely to draw regulatory scrutiny, and this patent bubble will pop.
We’re not naive; technology is a tough and ever-changing industry and we work very hard to stay focused on our own business and make better products. But in this instance we thought it was important to speak out and make it clear that we’re determined to preserve Android as a competitive choice for consumers, by stopping those who are trying to strangle it.
We’re looking intensely at a number of ways to do that. We’re encouraged that the Department of Justice forced the group I mentioned earlier to license the former Novell patents on fair terms, and that it’s looking into whether Microsoft and Apple acquired the Nortel patents for anti-competitive means. We’re also looking at other ways to reduce the anti-competitive threats against Android by strengthening our own patent portfolio. Unless we act, consumers could face rising costs for Android devices — and fewer choices for their next phone.
UPDATE August 4, 2011 - 12:25pm PT
It's not surprising that Microsoft would want to divert attention by pushing a false "gotcha!" while failing to address the substance of the issues we raised. If you think about it, it's obvious why we turned down Microsoft’s offer. Microsoft's objective has been to keep from Google and Android device-makers any patents that might be used to defend against their attacks. A joint acquisition of the Novell patents that gave all parties a license would have eliminated any protection these patents could offer to Android against attacks from Microsoft and its bidding partners. Making sure that we would be unable to assert these patents to defend Android — and having us pay for the privilege — must have seemed like an ingenious strategy to them. We didn't fall for it.
Ultimately, the U.S. Department of Justice intervened, forcing Microsoft to sell the patents it bought and demanding that the winning group (Microsoft, Oracle, Apple, EMC) give a license to the open-source community, changes the DoJ said were “necessary to protect competition and innovation in the open source software community.” This only reaffirms our point: Our competitors are waging a patent war on Android and working together to keep us from getting patents that would help balance the scales.
Aug 2, 2011
Adapting AdWords for time-strapped small businesses
This is the latest post in our series profiling entrepreneurial Googlers working on products across the company and around the world. In this post, you’ll read how a small team took a successful grassroots approach to helping businesses advertise online. - Ed.
In early 2010, I was talking with some friends from Google’s India office about how to help small, local businesses advertise online. We found that small business owners the world over had a key commonality: very little time. We decided to tackle this problem head on, with the hopes of making the advertising process quicker and easier for small businesses.
My colleagues in India flew out to our headquarters in California, and we teamed up with a Google Maps product manager who had some first hand experience working with small business owners. One of his friends ran a small mountain clothing store in New Hampshire called The Mountain Goat of Hanover, which had just moved to town. She was responsible for staffing, bookkeeping, inventory management and many other time-intensive tasks—all with very little help. She had the desire to try promoting her business online, but learning to manage a new form of advertising wasn’t something she had time for.
The Mountain Goat of Hanover was our first case study, but it seemed like any interaction we had with a small business led to a conversation about how it advertised. A photographer in Virginia, a San Francisco dentist and a contractor re-doing my kitchen all told the same story: Online advertising should be simpler.
What all of these business owners needed was advertising that was measurable, affordable and quick. While they could use AdWords, they needed something even faster: a tool that they could set up easily and then walk away from, trusting that their advertising would be managed efficiently.
A handful of us started building a new tool for advertisers that met these requirements and within a few weeks, we were beta testing it with the owner of The Mountain Goat, the photographer, the dentist and the contractor—inviting more small businesses as interest grew. We literally went door to door in San Francisco and Chicago, asking local businesses if our tool could help them advertise better. Soon, we had more than 50 businesses testing the new ads product and within a few months, that number was over 2,000.
Our team runs somewhat like the small businesses with which we work. We’re a small, close-knit group of friends that spend most of our time huddled in a room making decisions on the spot and moving fast to launch a product in a matter of months. By the end of 2010, we’d launched our tool, which we called Google Boost at the time, in 25 cities across five states. And just last week, we officially launched AdWords Express to all businesses in the U.S. We would never have been able to do that outside of Google, where we were able to leverage the existing AdWords system, infrastructure and dedicated teams. By making it easier for people to implement effective advertising campaigns, we’ve been able to bring tens of thousands of small businesses online—and we’ve only just begun.
In early 2010, I was talking with some friends from Google’s India office about how to help small, local businesses advertise online. We found that small business owners the world over had a key commonality: very little time. We decided to tackle this problem head on, with the hopes of making the advertising process quicker and easier for small businesses.
My colleagues in India flew out to our headquarters in California, and we teamed up with a Google Maps product manager who had some first hand experience working with small business owners. One of his friends ran a small mountain clothing store in New Hampshire called The Mountain Goat of Hanover, which had just moved to town. She was responsible for staffing, bookkeeping, inventory management and many other time-intensive tasks—all with very little help. She had the desire to try promoting her business online, but learning to manage a new form of advertising wasn’t something she had time for.
Kendra Dynok, manager of The Mountain Goat of Hanover, helps a customer.
The Mountain Goat of Hanover was our first case study, but it seemed like any interaction we had with a small business led to a conversation about how it advertised. A photographer in Virginia, a San Francisco dentist and a contractor re-doing my kitchen all told the same story: Online advertising should be simpler.
What all of these business owners needed was advertising that was measurable, affordable and quick. While they could use AdWords, they needed something even faster: a tool that they could set up easily and then walk away from, trusting that their advertising would be managed efficiently.
A handful of us started building a new tool for advertisers that met these requirements and within a few weeks, we were beta testing it with the owner of The Mountain Goat, the photographer, the dentist and the contractor—inviting more small businesses as interest grew. We literally went door to door in San Francisco and Chicago, asking local businesses if our tool could help them advertise better. Soon, we had more than 50 businesses testing the new ads product and within a few months, that number was over 2,000.
Our team runs somewhat like the small businesses with which we work. We’re a small, close-knit group of friends that spend most of our time huddled in a room making decisions on the spot and moving fast to launch a product in a matter of months. By the end of 2010, we’d launched our tool, which we called Google Boost at the time, in 25 cities across five states. And just last week, we officially launched AdWords Express to all businesses in the U.S. We would never have been able to do that outside of Google, where we were able to leverage the existing AdWords system, infrastructure and dedicated teams. By making it easier for people to implement effective advertising campaigns, we’ve been able to bring tens of thousands of small businesses online—and we’ve only just begun.
Calling from Gmail now in 38 languages, with lower rates to over 150 destinations
We’re always trying to make it easier for people to connect—whether that means sending an email, chatting or video chatting, you can reach the people you care about from right inside Gmail. Last year, we made it possible for those of you in the U.S. to call any mobile phone or landline directly from Gmail and starting today, we are making this available to many more of you who use Gmail outside the U.S. by offering calling in 38 new languages.
You can now buy calling credit in your choice of four currencies (Euros, British pounds, Canadian dollars or U.S. dollars) and there are no connection fees, so you only pay for the time you talk.
To help reduce the cost of staying connected, we’re also lowering our calling rates to over 150 destinations around the world. For example, it’s now only $0.10 (or €0.08) per minute to call mobile phones in the U.K., France or Germany (landlines are $0.02/min), $0.15/minute to call mobile phones in Mexico and $0.02/min to call any phone number in China and India. The complete list is available on our rates page.
We’re rolling out this feature over the next few days, so if it’s available in your country you’ll see a little green phone icon show up at the top of your chat list and you’ll be ready to make calls (you’ll need to install the voice and video plug-in if you haven’t already). If you're a Google Apps user, your domain administrator must have Google Voice and Google Checkout enabled in the administrator control panel in order to be able to use this feature.
Calls to the U.S. or Canada placed within those countries will continue to be free at least for the rest of 2011. Calls to the U.S. or Canada placed from outside these countries will be charged $0.01 per minute (or €0.01, £0.01, C$0.01 per minute).
You can now buy calling credit in your choice of four currencies (Euros, British pounds, Canadian dollars or U.S. dollars) and there are no connection fees, so you only pay for the time you talk.
To help reduce the cost of staying connected, we’re also lowering our calling rates to over 150 destinations around the world. For example, it’s now only $0.10 (or €0.08) per minute to call mobile phones in the U.K., France or Germany (landlines are $0.02/min), $0.15/minute to call mobile phones in Mexico and $0.02/min to call any phone number in China and India. The complete list is available on our rates page.
We’re rolling out this feature over the next few days, so if it’s available in your country you’ll see a little green phone icon show up at the top of your chat list and you’ll be ready to make calls (you’ll need to install the voice and video plug-in if you haven’t already). If you're a Google Apps user, your domain administrator must have Google Voice and Google Checkout enabled in the administrator control panel in order to be able to use this feature.
Calls to the U.S. or Canada placed within those countries will continue to be free at least for the rest of 2011. Calls to the U.S. or Canada placed from outside these countries will be charged $0.01 per minute (or €0.01, £0.01, C$0.01 per minute).
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