The German courts are looking to hold Google liable for infringing on a Microsoft patent which key claim involves a "computer system for identifying local resources and method therefor." This essentially means that Google cannot combine search results with map data, which is a huge idea that could ultimately result in the ban of Google Maps and other location-based search products (many of Googles products). Google would have to disable access to Google Maps from German IPs from both Android and PC. In order to avoid this, Google will have to pay some form of royalty to Microsoft, as almost every participant of the Android ecosystem already has.
This could be a crippling blow to Google:
"With an injunction against Google Maps in Germany on the horizon, Google may soon reconsider. Google's own counsel told the court today that Google would suffer irreparable harm if it had to shut down a key part of its Google Maps service in Germany and that customers who then use competing services (such a Microsoft's Bing Maps, which Judge Dr. Zigann mentioned) may never return to Google Maps. "
Interestingly, it was Motorola who sued Microsoft, in which Microsoft counter sued on this issue. Motorola actually issued 4 suits on Microsoft. This goes to show how litigation can backfire and even cause serious damages to the prosecution. Motorola, as part of Google, can also sue despite it being a controlled entity. I wonder how legal structures like this are established and what is considered a legal entity that has the right to sue.
It is also interesting to learn that Microsoft has a literal monopoly on licenses in the Android market. Samsung and other Android platform manufacturers have established license agreements with Microsoft. In Googles need to flex its legal muscle, it will probably succumb to Microsoft's patent armory.
This could be a pivotal shift in the smart phone patent ligation hype right now and definitely will be interesting to see how this progresses.
I'm curious to see if this is going to hold up or if in fact the pending litigation in one of the other suits will nullify this as that is what Google is hoping for. I understand that the judge believes these are separate issues, but will Google be able to flex enough to ultimately have all of this squashed... guess time will tell.
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