Apple bidding to pickup Nortel patents

Reuters has it on “good authority” that Apple might be bidding to purchase some of Nortel’s patent assets. Back in 2009, Nortel filed for bankruptcy. It’s being reported that Nortel has divveyed up 1 billion dollars worth of patents into multiple lots that contain related patents. Apple’s apparently in on the bidding war.

The patents likely to draw the most attention relate to third- and fourth-generation wireless technology such as Long Term Evolution, with device-makers such as Research In Motion, 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 Alexander Poltorak, chief executive of General Patent Corp, which advises companies on intellectual property strategy and valuation but is not advising anyone involved in the Nortel patent auction.

This news hits particularly close to home. Nortel has a huge campus in our hometown (Ottawa), and a lot of people have been affected by the company both directly and indirectly in Canada’s national capital. It’s going to be interesting to see how Apple fares in this bidding process. Nortel had almost 90,000 employees and was responsible for a huge technology boom in Ottawa in the 90s through until early 2000.  Once valued at $250 billion, the stock crashed and the company now remains in tatters.

Many expect that some of these patents can tip the balance of power in the mobile market. Nortel holds significant LTE and SAE patents, and according to Fairfield Resources, they might hold seven of the 105 patents essential to 4G technology.

You can bet Google, Apple, and RIM will be fighting to the end on this one.

Article Via MacRumors