Nortel Patents Sold for $4.5 Billion to Consortium Which Includes Apple

nortel logo1

Nortel announced that they had concluded an auction to sell of its patents and patent applications to a consortium consisting of Apple, EMC, Ericsson, Microsoft, RIM and Sony. The final winning bid was $4.5 billion and includes over 6,000 patents and patent applications covering wireless, 4G, networking optical, voice internet, semiconductors and more.

"Following a very robust auction, we are pleased at the outcome of the auction of this extensive patent portfolio", said George Riedel, Chief Strategy Officer and President of Business Units, Nortel. "The size and dollar value for this transaction is unprecedented, as was the significant interest in the portfolio among major companies around the world."

We had previously reported that Apple had been interested in buying up the patents off Nortel Networks which had filed for bankruptcy in 2009. The interest in the portfolio was significant due to the broad reach of the patents, especially in the area of wireless networking and LTE technology. Google was also said to be one of the early interested parties by placing an opening bid of $900 million on the patents.

One research firm has estimated that there are 105 patent families deemed essential to deployment of LTE (4G) technology, with Nokia controlling 57 of those families. Ericsson is said to control 14 families, while Nortel, Qualcomm, and Sony are each reported to control about seven families. The companies that are part of the winning bid will presumably provide access to these patents to those companies.

Popular Stories

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
macbook pro blue green

When Will Apple Release the M5 MacBook Pro?

Wednesday March 26, 2025 4:53 pm PDT by
Apple regularly refreshes the MacBook Pro models, and a new version that uses M5 series chips is in the works. Apple just finished refreshing most of the Mac lineup with M4 chips, and now it's time for the M5. Rumors suggest that we could see the first M5 MacBook Pro models this fall. Design There have been no rumors of a design update for the M5 MacBook Pro models that are coming this...
Apple Lumon Terminal Pro

Apple's Mac Site Features Fictional 'Lumon Terminal Pro'

Wednesday March 26, 2025 12:19 pm PDT by
Apple is going all out with promotions for the popular Severance Apple TV+ show today, and as of right now, you'll find a new "Lumon Terminal Pro" listed on Apple's Mac site. The Lumon Terminal Pro is designed to look similar to the machines that Severance employees like Mark S. and Helly R. use for macrodata refinement. The Terminal features a blue keyboard, a small display with wide...
Facebook Feature

Facebook's New iPhone App Feature Turns the Clock Back to 2007

Thursday March 27, 2025 1:59 pm PDT by
In the mid-to-late 2000s, Facebook was all about staying connected with friends and family. However, as the social media platform added new features and grew over time, that core experience began to get drowned out. That changes starting now, according to Meta, which today introduced a new feature that will "bring back the joy" of classic Facebook. Specifically, Meta has redesigned the...
Generic iOS 18

iOS 18.4 Coming Soon With These New Features for Your iPhone

Tuesday March 25, 2025 6:45 am PDT by
Apple is expected to release iOS 18.4 to the general public as soon as next week, following more than a month of beta testing. Apple's website says some iOS 18.4 features will be released in "early April," so the update should be out as early as Tuesday, April 1. Apple this week seeded the iOS 18.4 Release Candidate, which is typically the final beta version, barring the discovery of any...
iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Supports 8K Video Recording, Suggests Leaker [Updated]

Wednesday March 26, 2025 4:06 am PDT by
Update 7:25 pm: Based on comments from our forums, it appears the original Weibo post may have been mistranslated and "8K" actually refers to the high price of the device rather than 8K video recording capabilities. The iPhone 16 Pro currently starts at 7,999 yuan in China. Our original article follows below. Apple's forthcoming iPhone 17 Pro models are capable of shooting 8K video, up...
Foldable iPhone 2023 Feature 1

'iPhone Fold' to Feature Metallic Glass Hinge That Resists Deformation

Thursday March 27, 2025 4:21 am PDT by
Last week, we covered a report claiming that Apple's book-style foldable iPhone (or "iPhone Fold," as we are provisionally calling it here) will use liquid metal hinges to improve durability and help minimize screen creasing. Today, a Chinese leaker provided more details on the properties of this hinge material that help to clarify why Apple chose it for its first foldable device. According...
Generic iOS 19 Feature Mock

Gurman: Jon Prosser's iOS 19 Mockups 'Aren't Representative' of Redesign

Tuesday March 25, 2025 4:47 pm PDT by
The iOS 19 mockup images that leaker Jon Prosser shared today are not representative of the actual iOS 19 design, Bloomberg's Mark Gurman said on social media. According to Gurman, the images that are "floating around" are based on "very old builds" or "vague descriptions," and are lacking key features. Gurman says that we can "expect more from Apple in June." Gurman made the same comment ...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive a New Perk

Thursday March 20, 2025 12:01 am PDT by
If you pay for iCloud storage on your iPhone, Apple has a new perk for you, at no additional cost. The new perk is the ability to create invitations in the Apple Invites app for the iPhone, which launched in the App Store last month. In the Apple Invites app, iCloud+ subscribers can create invitations for any occasion, such as birthday parties, graduations, baby showers, and more. Anyone ...

Top Rated Comments

dethmaShine Avatar
179 months ago
Google's response

“This outcome is disappointing for anyone who believes that open innovation benefits users and promotes creativity and competition,”

Google's hypocrisy goes to 11.
Score: 6 Votes (Like | Disagree)
JAT Avatar
179 months ago
Oh god, Google and Nokia not listed. Can't wait for the next round of annoying patent wars. :rolleyes:
Score: 6 Votes (Like | Disagree)
shartypants Avatar
179 months ago
Refreshing to see so many patents being sold to a consortium, hopefully that will cut down on suing, although I'm sure Google is not happy. Microsoft will probably help out Nokia since they are building their phones.
Score: 5 Votes (Like | Disagree)
cmaier Avatar
179 months ago
Oh god, Google and Nokia not listed. Can't wait for the next round of annoying patent wars. :rolleyes:

Nokia has its own ammunition. Google, on the other hand....
Score: 4 Votes (Like | Disagree)
kdarling Avatar
179 months ago
So this "consortium" exists as an agreement between major players in the telecom industry to limit the use of these technologies to its members, thereby locking out new competitors?

Nope.

In my great-granddaddy's day they called that a "trust", and passed laws against it.

It's still against anti-trust laws to withhold a group of patents vital to an industry.

That's why the government had a little talk with Apple before they bid in the auction. All the other companies have a long history of licensing patents. Apple does not.

I also suspect this auction is involved with why Apple made a deal for Nokia licenses so suddenly. I think they were showing the government that they could play nice and/or it was a requirement to be a consortium member.
Score: 3 Votes (Like | Disagree)
s1m Avatar
179 months ago
I don't understand how does that company declare bankruptcy? Don't companies use their patents -> give them some steady income? Although "bankruptcy" is subjective, they just made 4,5billions, I don't think they're bankrupt any more :)

Bankruptcy in its purest form is having less assets than liabilities. The fact that you own a patent doesnt mean that you are actually earning money for a start. You could have the patent on cold fusion but not earning any money as no-one might be licensing the patent.

Also in terms of bankruptcy - the value attributed to the patent asset might be a lot less than the amount paid at this point. Think of it as a fire sale - for bankruptcy purposes they might value the patent a lot lower than it was eventually sold for.

Finally - although they got $4.5Bn for the patents - they might have had $10Bn in liabilities...
Score: 3 Votes (Like | Disagree)