A consortium of tech giants has emerged as the winning bidder for the patent portfolio of bankrupt Canadian vendor Nortel Networks after pledging US$4.5bn.
The consortium is made up of Apple, Ericsson, Microsoft, Research in Motion (RIM), Sony and the…
A consortium of tech giants has emerged as the winning bidder for the patent portfolio of bankrupt Canadian vendor Nortel Networks after pledging US$4.5bn.
The consortium is made up of Apple, Ericsson, Microsoft, Research in Motion (RIM), Sony and the storage provider EMC.
The US$4.5bn figure represents a five-fold increase on Google’s initial US$900m stalking horse bid for the patent portfolio.
Nortel’s chief strategy officer, George Riedel, said that the company was pleased with the outcome of the auction.
“The size and dollar value for this transaction is unprecedented, as was the significant interest in the portfolio among major companies around the world,” he said.
By contrast, Google expressed disappointment at the result.
Google’s senior VP and general counsel, Kent Walker, said: “This outcome is disappointing for anyone who believes that open innovation benefits users and promotes creativity and competition. We will keep working to reduce the current flood of patent litigation that hurts both innovators and consumers.”
It declined to comment on the final bid price.
Walker wrote in a blog post in April that one of a company’s best defences against patent litigation was to have a “formidable” patent portfolio.
The portfolio includes over 6,000 patents and patent applications. These cover a broad range of areas, including wireless 4G technology, data networking, semiconductors and other areas.
Nortel said that the portfolio “touches nearly every aspect of telecommunications”. It also covers other markets, including internet search and social networking.
The sale is still subject to approval by US and Canadian courts. Nortel said it will work to close the deal in Q3.
Nortel entered bankruptcy protection in 2009.