Google is offering to buy the last vestige of Nortel, its patent portfolio, for an initial bid of $900m in an auction that starts in June. The bankrupt Nortel Networks is offloading its remaining patents and patent applications for a cash purchase price of at least $900 million, with Google leading the race to take […]
Google is offering to buy the last vestige of Nortel, its patent portfolio, for an initial bid of $900m in an auction that starts in June. The bankrupt Nortel Networks is offloading its remaining patents and patent applications for a cash purchase price of at least $900 million, with Google leading the race to take them over. The auction for the patents is set for June 2011. The patents could help arm Google against potential lawsuits aimed at its Chrome browser and Android mobile operating system.
06/04/2011
Patents are becoming highly prized pieces of intellectual property.
The amount of money being put up illustrates how fierce the patent wars have become as companies like Apple, Google, Nokia and HTC become embroiled in lawsuits.
Canada- based Nortel filed for bankruptcy in January 2009 and has been steadily selling off its assets to pay creditors.
Nortel’s administrators have signed a stalking horse deal with Google regarding the sale. All the rest of Nortel’s businesses have been sold since the company went bankrupt two years ago, to companies including Ciena, Ericsson and Genband.
The deal includes the planned sale of nearly 6,000 patents and patent applications spanning wireless, data networking, optical, voice, internet, service provider, semiconductors and other patent portfolios.
The sale is awaiting approval from the judges overseeing Nortel’s bankruptcy cases in the US and Canada.
Google will be paid a $25 million breakup fee if another company wins a proposed auction for bankrupt Nortel’s patent portfolio.
To outbid Google, any company is required to pay at least $29 million more than Google’s initial offer. Each subsequent bid must be at least $5 million over the last offer.
