Google ‘Disappointed’ at Losing Bid for Nortel Technology

Google denotive disappointment at losing the bid for Nortel's fire sale of technology patents, characterizing the purchase away a consortium of its rivals "disappointing" for the cause of open introduction.

Google offered $900 million for the patents in Apr, but was non among the winning bidders. The volume of the patents and letters patent applications went instead to a consortium of distinguish technology companies for a cash buy Mary Leontyne Pric of US$4.5 billion.

Nortel says the consortium consisting of Apple, EMC, Ericsson, Microsoft, Research In Apparent motion and Sony had emerged equally the successful bidder in the multiday auction. It did not give information on the other bidders.

"This outcome is disappointing for anyone World Health Organization believes that open conception benefits users and promotes creativity and competition," said Kent Walker, Google's senior V.P. and general counsel in an e-armored statement. "We will retain working to reduce the current flood of patent judicial proceeding that hurts some innovators and consumers."

In a blog post in April, Walker aforementioned Google was bidding for the Nortel patents as it hoped the portfolio would produce a disincentive for others to sue Google, and also help the company, its partners and the open source community of interests, which is integrally involved in projects like Mechanical man and Chrome, preserve to innovate. Having a redoubtable patent portfolio is one of a company's best defenses against an explosion in letters patent litigation that threatens to stifle innovation, helium added.

"We believe the syndicate is in the best position to utilize the patents in a manner that will be well-disposed to the industry foresightful term", Ericsson said. The troupe said it would contribute $340 million to the transaction which is expected to close in the tierce stern. RIM said its portion of the leverage consideration was about $770 million.

The sale includes much 6000 patents and unmistakable applications spanning wireless, wireless 4G, data networking, optical, phonation, Internet, service provider, semiconductors and other patents, Nortel said.

The sale is subject to practical Canadian and U.S. romance approvals which bequeath constitute sought at a joint auditory sense matter-of-course to be held on July 11, it added.

Nortel Networks said in April that it entered in into a "still hunt horse" asset sales agreement agreement with Google for the sale of each of its remaining patents and obvious applications for a cash purchase terms of $900 million. The Google bid effectively set the minimum asking damage in an auction sale for the assets.

In May, Nortel said that it obtained approving from the U.S. Bankruptcy Motor hotel for the District of First State and from the Ontario Superior Court of Justice to accept the bid from Google.

Nortel filed for protection under U.S. Chapter 11 failure proceedings in January 2009, and has been marketing soured its assets ever since. Ericsson paid just over $1 billion for the accompany's CDMA (Code Division Multiple Admittance) wireless division, while Avaya paid-up just under $1 billion for its enterprise networking business.

John Ribeiro covers outsourcing and general engineering science breaking news from India for The IDG News show Service. Follow John on Chirrup at @Johnribeiro. John's e-send address is john_ribeiro@idg.com