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Google Limits Liability for Motorola Home's Buyer

NEW YORK ( TheStreet) -- We heard yesterday that Google (GOOG - Get Report) had sold half of Motorola Mobility to broadband/cable TV/networking experts Arris (ARRS - Get Report) for $2.3 billion. The half they sold is known as Motorola Home and specializes in television set-top boxes.

Google had purchased all of Motorola Mobility in May for $12.5 billion.

The Motorola Home business makes the Internet cable modems preferred by Time Warnber Cable (TWC - Get Report) and others that we told you about in October. Google says it sold Moto Home to concentrate on the half of the former MMI that makes Android smartphones and tablets.

Today, we're learning a little more about the terms of the sale. Tech Crunch is reporting that as part of the deal, Google had to promise to cap any future liability Arris might face as part of the sale. Especially when it comes to any possible negative outcome from Motorola Mobility's ongoing patent battle with TiVo (TIVO - Get Report).

In October, TiVo filed suit saying Motorola was responsible for "massive production of infringing DVRs" and, if successful, "TiVo's damages claim is likely to run into the billions of dollars." TiVo says it will try to get the courts to stop Motorola from selling the allegedly infringing products. Motorola has filed patent-infringement counter-claims against TiVo.

For the record, as part of the deal, Arris obtains a broad range of Motorola Mobility patents.

-- Written by Gary Krakow in New York

>To submit a news tip, send an email to: tips@thestreet.com.
Gary Krakow is TheStreet's senior technology correspondent.

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