Update: Apple, Microsoft consortium beats Google for Nortel patents
IDG News Service - Nortel Networks has auctioned off its remaining patents and patent applications to a consortium of key technology companies for a cash purchase price of $4.5 billion.
Google, which offered $900 million for the patents in April, was not among the winning bidders.
Nortel said in a statement late Thursday that a consortium consisting of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony had emerged as the winning bidder in the multi-day auction. It did not give information on the other bidders.
"We believe the consortium is in the best position to utilize the patents in a manner that will be favorable to the industry long term", Ericsson said. The company said it would contribute $340 million to the transaction which is expected to close in the third quarter. RIM said its portion of the purchase consideration was about $770 million.
The sale includes more than 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, Internet, service provider, semiconductors and other patents, Nortel said.
The sale is subject to applicable Canadian and U.S. court approvals which will be sought at a joint hearing expected to be held on July 11, it added.
Nortel Networks said in April that it entered in into a "stalking horse" asset sale agreement with Google for the sale of all of its remaining patents and patent applications for a cash purchase price of $900 million. The Google bid effectively set the minimum asking price in an auction for the assets.
"This outcome is disappointing for anyone who believes that open innovation benefits users and promotes creativity and competition," said Kent Walker, Google's senior vice president and general counsel in an e-mailed statement. "We will keep working to reduce the current flood of patent litigation that hurts both innovators and consumers."
In a blog post in April, Walker said Google was bidding for the Nortel patents as it hoped the portfolio would create a disincentive for others to sue Google, and also help the company, its partners and the open source community, which is integrally involved in projects like Android and Chrome, continue to innovate. Having a formidable patent portfolio is one of a company's best defenses against an explosion in patent litigation that threatens to stifle innovation, he added.
Nortel filed for protection under U.S. Chapter 11 bankruptcy proceedings in January 2009, and has been selling off its assets ever since. Ericsson paid just over $1 billion for the company's CDMA (Code Division Multiple Access) wireless division, while Avaya paid just under $1 billion for its enterprise networking business.
- Phil Schiller up again in next round of Apple-Samsung battle
- Nokia and HTC bury hatchet in patent disputes
- How about them apples: Google and Samsung ink patent deal
- Samsung's Apple damages equal to just 16 days' profit
- Supreme Court to get software patent case
- The latest move to kill bad patents divides tech industry
- Judge refuses to stay Apple-Samsung lawsuit pending patent review
- A huge damage award looms as Apple and Samsung return to court next week
- New patent reform bill targets trolls
- Samsung won't get a retrial in 'overscroll bounce' patent fight with Apple
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- What Datapipe customers need to know about the new PCI DSS 3.0 compliance standard This handy quick reference outlines what PCI DSS 3.0 is, who needs to be compliant and how Alert Logic solutions address the new...
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Defense Throughout the Vulnerability Life Cycle This whitepaper provides insight into how to leverage threat and log management technologies to protect your IT assets throughout their vulnerability life cycle.
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All Legal White Papers | Webcasts