• MOST READ

• LATEST NEWS

Just how anyone expected Google to be denied the right to bid for Nortel's patent hoard, when it has a fraction of the patents of anyone else that wanted to bid, such as Microsoft, Motorola Mobility and Nokia, is anyone's guess. But true to form the Justice Department (DoJ) has cleared the opening Google $900 million bid for Nortel's 6,000 patents and patent applications, for when the auction begins on June 20, four days from now.

It seems that anti-trust doesn't start with you just being big, it starts with you being big in the same business or a neighboring business, and Google, in the opinion of the DoJ is quite clearly not big in patents generally and especially not in the areas where Nortel holds them.

The story broke in yesterday's Wall Street Journal, confirming that Google may open the bidding in the Nortel auction. Other interested parties include Apple, RIM and Microsoft. Neither the DoJ nor Google thought it was worth commenting on the decision.

Nortel had already agreed to sell its remaining 6,000 wireless, networking, social software and other patents to Google for $900 million in cash, which Google is thought to need so that it can barter its way to patent swapping agreements with rival technology businesses such as its big enemy Microsoft. Microsoft has made it clear that it believes that it already has a license agreement for those patents, so it doesn't have to deal with Google. We're not sure of the law, but does that mean that Google also has the patent licenses that the deal between Nortel and Microsoft brought to Nortel? Clearly that's what Microsoft is worried about.

Google can use these patents as a negotiating chip as patent litigation is aimed directly at it by older companies, and needs a leg up in cellular where Nortel was strong, because through Android it is now strong in the handset design business.

Apple has gone after Google's Android, in particular targeting HTC and Samsung with patent actions, even though Samsung is a component partner of Apple's. Both make smartphones using Google's Android, and are perhaps the most aggressive at undermining Apple's handset position products similar to the iPhone.

The Wall Street Journal suggested that the DoJ thought Apple would use the patents to pursue further litigation, but hat Google may use them purely as a patent shield to protect itself from legal actions. Perhaps Apple could have done with them before it settled its own patent case with Nokia earlier this week.

Google's bid has raised concern from Microsoft, Hewlett-Packard, Nokia, Motorola Mobility and Verizon who all filed objections to the sale - perhaps because they are used to beating Google up about its lack of patents and don't want to change the status quo. Apple is now considered likely to raise the bidding for the Nortel patents after it embarrassing climb down in the Nokia suit, feeling the need to raise it patent profile.

Related Stories

COMMENTS

No comments yet. Be the first to add a comment!

Carrier Broadband Performance: Africa & Middle East
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. This...

Voice over LTE: Market Analysis and Forecasts
VoLTE offer unique advantages in lowering a carrier's voice infrastructure economics and promises to improve voice quality, device...