Google goes shopping for patents

Google has made a $900m bid for the patent portfolio of Nortel Networks, the bankrupt Canadian telecom equipment maker.

The patents could help arm it against potential lawsuits aimed at its Chrome browser and Android mobile operating system.

Patents are becoming highly prized pieces of intellectual property.

Experts told the BBC they believe the final price could go well over $1bn and may be as high as $2bn. 

The amount of money being put up illustrates how fierce the patent wars have become as companies like Apple, Google, Nokia and HTC become embroiled in lawsuits. 

Google is not convinced that all the litigation is justified.

"The patent system should reward those who create the most useful innovations for society, not those who stake bogus claims or file dubious lawsuits," said Kent Walker general counsel for Google in the firm's blog.

'If successful, we hope this portfolio will not only create a disincentive for others to sue Google, but also help us, our partners and the open source community - which is integrally involved in projects like Android and Chrome - continue to innovate," he added in a blog post. 

Google's $900m bid is a "stalking horse asset sale agreement" which means other companies interested in the 6,000 patents on offer have to put more money on the table.

The sale will include patents and patent applications for wired, wireless and digital communications technology.

"This is an unprecedented opportunity to acquire one of the most extensive and compelling patent portfolios to ever come on the market," said George Riedel, Nortel's chief strategy officer.

Apple verdict

 

Hours after Google announced its bid for Nortel's patents, Apple won a court ruling throwing out a $625.5m patent infringement verdict over how documents are displayed on a computer screen.

Back in October, a jury said Apple was infringing on three patents owned by Mirror Worlds LLC and awarded damages of $208.5m for each patent. 

Apple argued in court papers that the amount was too high. US District Judge Leonard Davis agreed.

"Mirror Worlds may have painted an appealing picture of the jury, but it failed to lay a solid foundation sufficient to support important elements it was required to establish under the law," he concluded.

Read more: http://www.bbc.co.uk/news/technology-12970244