Microsoft sues Motorola, citing Android patent infringement (ars technica)

There are many ways Motorola and Google could play this. My preference would be for them to argue that these are directly analogous to the types of business methods already ruled by the Supreme Court as unpatentable, on the grounds that it is the process involved that is ultimately in dispute and not specific patented algorithms at the code level.

The reason I'd prefer that is that whilst I dispute the validity of software patents, the courts are wary of getting into that territory. On the other hand, we already have a well-defined (albeit narrow) ruling that the courts can go along with without feeling guilty over it.

The more that industry is forced to concede purely within the scope of that ruling, the less likely industry is to go down the path of patenting code. Being beaten in the courts threatens too much.

Sure, they may well decide to lobby Congress to develop a new form of IP to go along with trademarks, copyright and patents, but even that would force them to admit that it is not an invention in the accepted sense of the word.