Thread: Apple Microsoft Coalition - Successful in Winning over Google Regarding Nortel Patent

Nortel Networks has recently auctionedits patents to a business consortium of the most powerful technologycompanies at a price of $4.5 billion. Google had offered $900 millionfor the patents in April but couldn’t get through.

Nortel, issuing a statement on Thursdaydisclosed that the coalition of Apple, EMC, Ericsson, Microsoft,Research In Motion and Sony are the final winner of the bid. However,the company refused to give information about the other bidders.

After the result was announced,Ericsson in its statement told the reporters, “We believe theconsortium is in the best position to utilize the patents in a mannerthat will be favorable to the industry long term.” Adding further,the company told the press that it has already made a commitment tocontribute $340 million in the project. On the other hand, thepurchase consideration of Research In Motion is $770 million.

Giving the details of the bid, Norteladded that bid contained 6000 patents and the patent applications ofwireless 4G, spanning wireless, optical, data networking, Internet,voice, semiconductors and more. Adding further, the company told thatall the specifications of the bid are subjected on the approval ofthe U.S. and Canadian courts for which the joint hearing is scheduledon 11 July.

Nortel Networks also paid a focus onits deal with Google. The company openly said that in April, 2011 ithad entered into a poor bid on asset sale agreement with Google Inc.The deal was regarding the sale of all its remaining patents on amere sum of $900 million. The bid by Google actually set the minimumprice for the auction.

In May, 2011 Nortel had told in thepress that it has already obtained approval from the U.S. BankruptcyCourt for the District of Delaware and from the Ontario SuperiorCourt of Justice regarding acceptance of bid from Google.

Google's senior vice president andgeneral counsel, Kent Walker, in an e-mailed statement quoted,“This outcome is disappointing for anyone who believes that openinnovation benefits users and promotes creativity and competition. Wewill keep working to reduce the current flood of patent litigationthat hurts both innovators and consumers.”

Kent Walker, in a blog in April thisyear had told its consumers about the company’s plans to bid on theNortel patents. Google believes that its portfolio would keep a checkon others and would be of great benefit to not only Google but itspartners and the open source community, which is actively, indulgedin its android and Google chrome projects. Adding further he had saidthat having a number of patents will act as the defense system forthe company against a lot of patent litigation that continuouslyhampers innovation.