Apple, Google Seeking to Buy Nortel's Patent Portfolio - Report

Published on: 1st Jan 1970: 1:33am

­Canada's Nortel Networks is reported to be close to completing the bidding for its patent portfolio as part of its post-bankruptcy protection wind-down, while both Apple and Google have been suggested as potential bidders. Nortel has a portfolio of over 4,000 patents, which has been valued at least US$1 billion.

While bids for the patents can be expected from the usual technology vendors, it is speculated that Apple's interest is more defensive as it seeks to build up a portfolio of patents to settle its ongoing legal battle with Nokia etc. Most mobile technology firms engaged in patent lawsuits settle by means of reciprocal licensing of their patent portfolios, an option which puts new entrants such as Apple and Google at a distinct disadvantage.

A Fairfield Resources study last year estimated that there are 105 patent families deemed essential to deployment of LTE technology, with Nokia controlling 57 of those families. Ericsson is said to control 14 families, while Nortel, Qualcomm, and Sony are each reported to control about seven families.

Citing sources familiar with the situation, Reuters reported that the patents were likely divided and classified under six blocks of related technologies. Breaking the patent portfolio into smaller lots is expected to have enabled potential buyers to increase the value of their bids without the risk of paying for unwanted assets.

Nortel filed for bankruptcy protection in 2009 and has been slowly selling off its assets to other telecoms vendors.

On the web: Reuters

 

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