Innovation Asset Blog

Intellectual property dispute may halt Google, Motorola Mobility merger

As Google prepares to finalize its acquisition of Motorola Mobility, a small U.S. cellular solutions provider has come forward and accused Motorola of intellectual property theft.

In a lawsuit filed today in an Illinois court, Lemko Corporation has suggested that Motorola has been abusing IP-protected source code after hiring a former Lemko engineer involved in its creation. The suit claims that these allegedly stolen trade secrets have been put to use in all Motorola cell phones.

Additionally, the suit accuses Motorola of deleting evidence associated with its use of the coding.

"By destroying evidence of its misappropriation, Motorola has also engaged in willful, deliberate and malicious conduct and is, therefore, subject to increased damages under the Illinois Trade Secrets Act," the complaint states.

These developments could jeopardize a currently proposed $12.5 billion takeover bid put forth by Google. According to ZDNet Asia, Lemko officials have confirmed that they will "vigorously defend" their intellectual assets to prevent what they view as an illegal sale of Motorola Mobility.

Lemko and Motorola were originally housed under the same parent company before splitting into two independent firms in January. The latest suit provides an additional layer to a trade secret dispute that has now lasted more than three years. 

Peter Ackerman

Peter Ackerman

Founder & CEO, Innovation Asset Group, Inc.