A decision by Sony Ericsson Mobile Communications AB and Motorola Inc. to support a leading open-source mobile platform project has undermined a joint venture owned by the companies. UIQ Technology, which became jointly owned by Sony Ericsson and Motorola in October 2007, filed for bankruptcy in Sweden on Monday.
The firm has been struggling since its owners pledged UIQ's software to the
Symbian Foundation, created when
Nokia Oyj acquired Symbian Ltd. for $412 million in December. Nokia has adopted a royalty-free software model for the Symbian mobile OS, which left UIQ with no revenue stream for its Symbian user interface. And with the world economy roiling, UIQ chief executive Johan Sandberg
told Reuters, "There are no opportunities to create a new line of business
in the current financial climate."
Why would Sony Ericsson and Motorola donate its JV's product to the Symbian Foundation, essentially cutting off UIQ's revenue stream? Simple. The companies believe that the open-source foundation will result in better mobile products faster, which in turn, will offer the best opportunity for long-term growth.
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