US Justice Department Talking to Apple over Patent Use

Published on: 4th Jun 2011

­The USA's Justice Department is reportedly scrutinizing the expected bidders for the horde of patents being sold off by bankrupt Canadian firm, Nortel Networks over concerns that they could fall into the hands of a company determined to use them as weapons in the increasingly acrimonious patent battles between handset vendors.

Citing people familiar with the matter, the Wall Street Journal wrote that the investigation is the latest indication  the Justice Department has heightened its interest in whether patents are being used to stifle competition in high-tech industries.

Google has submitted an initial US$900 million bid for the patent trove, but this is a "stalking horse" offer, which means Nortel can accept a higher bid from other companies, and several are reported to be interested.

Google publicly stated when it put in its bid that it was more interested in building up a portfolio of patents to act as a defensive tool if companies attempt to sue it. However, it is generally thought that some of the other potential bidders might be more aggressive in their use of the patent pool if they can get hold of it.

The sources told the newspaper that the Justice Dept has greater concerns about Apple, another possible bidder, which has often tangled with rivals in patent suits. Apple has been in talks with the Justice Department to address its concerns, the people added.

The auction result is expected to be announced on 20th June.

On the web: Wall Street Journal

 

Tags: [apple]  [google]  [nortel networks]  [auction]  [USA]