Apple Reportedly Bidding to Purchase Nortel Patent Assets

150155 nortel logo

Reuters reports that Nortel Networks, which filed for bankruptcy in 2009 and is selling off all of its assets, is soliciting bidders for its extensive patent portfolio, and Apple is rumored to be one of the major players looking to acquire the rights as it seeks to beef up its arsenal in the increasingly-litigious mobile space.

Sources expect the sale to draw wireless telecom newcomers Apple and Google, which want to build up patent war chests as they fight incumbents such as Nokia, which want to protect their patent positions, in the courts.

"There has been one round of bidding on those patents, this has been completed," said one source, who declined to be identified because the process is private. "And what Nortel has done is divide the patents up into different lots covering different kinds of technologies."

According to the report, Nortel owns over 4,000 patents estimated to be worth over $1 billion, although Apple would almost certainly not be interested in acquiring all of Nortel's intellectual property assets and would instead focus on only the "buckets" of patents that most directly apply to its mobile products and technologies.

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.

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 mobile space currently involves a convoluted network of patent lawsuits in which companies are seeking to gain the upper hand over their rivals in the competitive market. Apple, which has been the most-sued technology company over the past several years, is currently suing or being sued by a number of companies, including Nokia, Motorola, HTC, and Kodak.

Popular Stories

Multi Display CarPlay 1

All-New Apple CarPlay Launching Later This Year With These 5 New Features

Friday September 29, 2023 11:29 am PDT by
At WWDC 2022 last year, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple said the first vehicles with support for the next-generation CarPlay experience would be announced in late 2023, but it has still not shared any additional...
iPhone 15 Pro lineup

Apple to Address iPhone 15 Pro Overheating Issue With iOS 17 Update

Saturday September 30, 2023 9:28 am PDT by
Apple plans to release an iOS 17 update to address a bug that may contribute to the reported iPhone 15 Pro and iPhone 15 Pro Max overheating issue, according to a statement the company shared today with MacRumors and Forbes reporter David Phelan. Apple also says some recent updates to third-party apps have overloaded the system and contributed to the overheating issue. The report notes that...
iphone se 4 modified flag edges

iPhone SE 4 Details: Action Button, USB-C Port, Face ID, and More

Wednesday September 27, 2023 1:34 pm PDT by
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...
BMW Logo iPhone 15 Pro

Warning: BMW Wireless Charging May Break iPhone 15's Apple Pay Chip

Sunday October 1, 2023 6:14 am PDT by
If you have an iPhone 15 and drive a BMW, it might be best to avoid charging the device with the vehicle's wireless charging pad for now. Over the past week, some BMW owners have complained that their iPhone 15's NFC chip no longer works after charging the device with their vehicle's wireless charging pad, according to comments shared on the MacRumors Forums and X, formerly known as Twitter. ...
iPhone 16 Side Feature

iPhone 16 and 16 Pro: Preliminary Weights and Dimensions

Friday September 29, 2023 12:34 pm PDT by
MacRumors has obtained preliminary information on the weights and dimensions planned for the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The information corroborates previous reports suggesting that the iPhone 16 Pro and 16 Pro Max will feature larger displays. iPhone 16 and 16 Plus Current information suggests that the iPhone 16 and 16 Plus will maintain the same...
CarPlay SharePlay

CarPlay Not Working for Some iPhone 15 Users, Possibly Because of USB-C Cables

Friday September 29, 2023 2:27 pm PDT by
CarPlay is not working as expected for some iPhone 15 users, an issue that is likely linked to the transition to USB-C. There are multiple complaints from MacRumors readers and Reddit users who are unable to get CarPlay to work with their new devices. Cable type and available port options are a common theme in the CarPlay reports, with many of the functionality problems linked to USB-A to...
iPhone 15 USB C Port Keynote

Some USB-C Power Banks Fail to Work With iPhone 15

Thursday September 28, 2023 2:06 pm PDT by
Apple added a USB-C port to the iPhone 15 lineup this year, allowing it to work with USB-C cables, USB-C power banks, and more. It turns out that some USB-C battery packs are not working properly with Apple's iPhone 15, resulting in charging issues. As highlighted on Reddit and the MacRumors forums, not all existing USB-C power banks can be used with the iPhone 15 models, perhaps due to the...