And more on Nortel Patents from the G&MFinal bids are due within weeks for blocks of patents owned by Canada's once mighty telecommunications giant, Nortel Networks Corp. including some that could change the balance of power among mobile operators.
The rare intellectual property portfolio sale is part of bankrupt Nortel's auction of assets, most of which have already been sold.
Sources expect the sale to draw wireless telecom newcomers Apple Inc, and Google Corp. which want to build up patent war chests as they fight incumbents such as Nokia which want to protect their patent positions in the courts.
There has been one round of bidding on these patents, this has been completed, said one source, who declined to be identified because the process is private. "And what Nortel has done is divide the patents up into different lots covering different kinds of technologies."
Nortel, which filed for bankruptcy protection in Jan. 2009, holds more than 4000 patents that analysts say are worth more than one Billion dollars.in total. Two sources with knowledge of the auction process, say that they have been
grouped into 6 buckets of related technologies AND THAT FINAL BIDS ARE DUE WITHIN WEEKS (WRITER'S EMPHASIS).
Nortel declined comment, saying that the process is confidential.
The patents cover wireless handsets, and infrastructure as well as optical and data networking, Internet, Internet Advertising, voice and personal computers.
The patents likely to draw most attention relate to third and fourth generation wireless technology, such as Long Term Evolution, with device makers such as RIM, Motorola, and Apple seen as likely bidders.
"It is certainly a very significant stockpile of potent weaponry and whoever lays their hands on it is going to gain significant advantage.." said AlexandrePoltarak, Chief Executive of General Patent Corp. which advises com;panies on intellectual property strategy and valuations but is not advisint anyone involved in the Nortel patent auction.
The auction, run by Lazard and Global IP Law Group, has been underway for about 7 months, two sources said.
RIM, which discussed buying the patents in mid-2009, and argued in favour of keeping Nortel's assets in Canadian hands, declinend to say whether it is involved in the auction. Apple and Google could not be reached for comment.
The Canadian government which recently blocked BHP Billiton Ltd. US 39 Billion dollar bid for Potash Corp of Sask. Inc. is considered unlikely to intervene in the patent sale.
Technology Companies use patents as a source of revenue and to increase their bargaining power in cross licensing agreements. they often take each other to court to enforce rights to certain inventions.
-Nadi Damouni
-Alastair Sharp
REuters.