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It's official: Nortel patent sale approved by US and Canadian courts (updated)
Nortel was just looking for some quick cash when the company put its 6,000 telecommunications patents up for auction. Then Google decided that IP would make a mighty fine troll deterrent, and started a crazy bidding war to get it. A coalition of the willing -- including Apple, EMC, Ericsson, Microsoft, RIM, and Sony -- opposed Big G and paid $4.5 billion for the prize portfolio pending approval by the powers that be. Well, both Canadian and US bankruptcy judges just gave the purchase two thumbs up, and the deal is officially done. Now the question is whether the auction's victors will use these patents as a shield against those with trollish intentions or as a sword to strike at their enemies? Update: To clarify, the deal was only approved by the bankruptcy courts, and the US DOJ is examining the sale for its possible anti-competitive effects.
Google bids $900 million for Nortel patent portfolio, will use it as shield against patent trolls (update)
Google and Nortel have agreed on the princely sum of $900 million to start off a "stalking horse" auction -- wherein outside parties are still free to outdo Google's bid -- for the acquisition of Nortel's rather vast patent portfolio. The sale comes as part of the latter company's bankruptcy selloff and involves some 6,000 patents and patent applications, which encompass both wired and wireless communications, semiconductors, data networking, voice, and the internet -- going so far as to even touch on web search and social networking. The thing is, Google's not really enamored with these tidbits of intellectual property to the tune of nearly a billion dollars. No sir, a rather bitter blog post from the company this morning makes it quite clear that Google's acting in order to bolster its own intellectual property library and to "create a disincentive for others to sue." Both Android and Chrome get obliquely mentioned in Google's announcement as benefiting from the move, which should be completed by June of this year pending other bids and regulatory approvals. Update: Microsoft has noted that it has "a worldwide, perpetual, royalty-free license to all of Nortel's patents that covers all Microsoft products and services, resulting from the patent cross-license signed with Nortel in 2006." That license will also transfer with the sale of the patent rights. All that means is that Microsoft cannot be sued for infringing on that bundle of rights as it is already licensed to use them. That means Microsoft is extremely unlikely to participate in this auction -- other than, of course, as a means to prevent others from obtaining the same rights.
