Google Suffers Huge Blow in Nortel Patent Auction

Google's aggressive bid for Nortel patents has failed, with an Apple-led consortium emerging victorious with a $4.5 billion offer. The auction marks the end of the once-mighty Nortel, which was sold off to pay off its massive debt. Google's loss of these patents is a significant blow, as it was seeking to bolster its patent portfolio to protect itself against lawsuits. With Nortel's patented technology used in popular smartphones from Apple, RIM, and Google, the winner of the auction now gains significant market influence in the multi-trillion-dollar technology field.

Key Takeaways:

Google's $900-million stalking horse bid was the starting point for the bidding process, which ended with an Apple-led consortium offering $4.5 billion for 6,000 patents and patent applications.
The winning consortium includes Apple, BlackBerry maker Research In Motion (RIM), Microsoft, Ericsson, Sony, and EMC, with RIM reportedly paying $770 million for its share of the patents.
The sale marks the end of Nortel, which at its peak was valued at over $250 billion and employed over 90,000 people worldwide.
Google was seeking to acquire Nortel patents to protect itself against over 45 patent lawsuits, including one of the largest against any major player.
The patents in question cover technology used in popular smartphones from Apple, RIM, and Google, giving the winner significant market influence in the technology field.

Statistics:

6,000 patents and patent applications were up for auction, with the winning consortium offering $4.5 billion.
Google's stalking horse bid was $900 million.
RIM reportedly paid $770 million for its share of the patents.
Nortel at its peak was valued at over $250 billion.
90,000 people were once employed by Nortel worldwide.
Google is involved in over 45 patent lawsuits, including one of the largest against any major player.

Sources:

Gurmukh Singh, IANS
IANS India Pvt. Ltd. (Copyright)
Hindustan Times (htsyndication@hindustantimes.com)