Sign in Subscribe
Patents

Google Outbid in Nortel Patent Auction, US DOJ Investigates Potential Antitrust Issues

Strategic Insights

— 1 min read

Google was outbid by a consortium led by Apple in the auction for 6,000 Nortel patents, raising concerns about the potential for antitrust issues. The winning bid of $4.5 billion was over $1 billion more than Google's final offer. The US Department of Justice is now investigating whether the consortium plans to use the patents to unfairly hobble competing smartphones using Google's Android software.

Key Takeaways:

  • The consortium, led by Apple, offered $4.5 billion for the Nortel patents, exceeding Google's final bid of $900 million.
  • The patents cover a wide range of technologies, including wireless, 4G, data networking, and semiconductor technology.
  • The US Department of Justice is investigating whether the consortium plans to use the patents to block competing smartphones using Google's Android software.
  • Google believes the consortium intends to use the patents to block innovation and has already stated its concerns about the deal.
  • The winning consortium includes Apple, Research in Motion (RIM), Microsoft, Sony, EMC Corp., and Telefonaktiebolaget LM Ericsson.
  • The acquisition has sparked lawsuits against Google and Android manufacturers, with Oracle suing over Java patents and Apple suing over patent infringement.
  • Google has countered by acquiring 1,000 patents from IBM related to memory and microprocessor chips, computer architecture, and online search engines.

Statistics:

  • $4.5 billion: The winning bid for the Nortel patents by the Apple-led consortium.
  • $900 million: Google's final bid for the Nortel patents.
  • 6,000: The number of patents and patent applications included in the Nortel portfolio.
  • 1,000: The number of patents acquired by Google from IBM.
  • $300 million: The cost of S3 Graphics Co., acquired by HTC to counter Apple's patent claims.

Sources:

  • [The Wall Street Journal]
  • [Bloomberg TV]
  • [SEO by the Sea]
  • [The Journal's sources, citing people familiar with the matter]
  • [Nortel Networks' patent portfolio]

Read more