Nortel Patents Sold for $4.5 Billion to Consortium Which Includes Apple

nortel logo1

Nortel announced that they had concluded an auction to sell of its patents and patent applications to a consortium consisting of Apple, EMC, Ericsson, Microsoft, RIM and Sony. The final winning bid was $4.5 billion and includes over 6,000 patents and patent applications covering wireless, 4G, networking optical, voice internet, semiconductors and more.

"Following a very robust auction, we are pleased at the outcome of the auction of this extensive patent portfolio", said George Riedel, Chief Strategy Officer and President of Business Units, Nortel. "The size and dollar value for this transaction is unprecedented, as was the significant interest in the portfolio among major companies around the world."

We had previously reported that Apple had been interested in buying up the patents off Nortel Networks which had filed for bankruptcy in 2009. The interest in the portfolio was significant due to the broad reach of the patents, especially in the area of wireless networking and LTE technology. Google was also said to be one of the early interested parties by placing an opening bid of $900 million on the patents.

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 companies that are part of the winning bid will presumably provide access to these patents to those companies.

Popular Stories

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in Three Months With These 12 New Features

Saturday June 14, 2025 5:45 pm PDT by
The iPhone 17 Pro and iPhone 17 Pro Max are three months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X through iPhone 14 Pro have a...
iPadOS 26 App Windowing

Apple Explains Why iPads Don't Just Run macOS

Friday June 13, 2025 7:46 am PDT by
iPadOS 26 allows iPads to function much more like Macs, with a new app windowing system, a swipe-down menu bar at the top of the screen, and more. However, Apple has stopped short of allowing iPads to run macOS, and it has now explained why. In an interview this week with Swiss tech journalist Rafael Zeier, Apple's software engineering chief Craig Federighi said that iPadOS 26's new Mac-like ...
Logitech Logo Feature

Logitech Announces Two New Accessories for WWDC

Friday June 13, 2025 7:22 am PDT by
Alongside WWDC this week, Logitech announced notable new accessories for the iPad and Apple Vision Pro. The Logitech Muse is a spatially-tracked stylus developed for use with the Apple Vision Pro. Introduced during the WWDC 2025 keynote address, Muse is intended to support the next generation of spatial computing workflows enabled by visionOS 26. The device incorporates six degrees of...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday June 12, 2025 8:58 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
iOS 26 Feature

Apple Seeds Revised iOS 26 Developer Beta to Fix Battery Issue

Friday June 13, 2025 10:15 am PDT by
Apple today provided developers with a revised version of the first iOS 26 beta for testing purposes. The update is only available for the iPhone 15 and iPhone 16 models, so if you're running iOS 26 on an iPhone 14 or earlier, you won't see the revised beta. Registered developers can download the new beta software through the Settings app on each device. The revised beta addresses an...
Mac Studio Feature

Apple Begins Selling Refurbished Mac Studio With M4 Max and M3 Ultra Chips at a Discount

Thursday June 12, 2025 10:14 am PDT by
Apple today added Mac Studio models with M4 Max and M3 Ultra chips to its online certified refurbished store in the United States, Canada, Japan, Singapore, and many European countries, for the first time since they were released in March. As usual for refurbished Macs, prices are discounted by approximately 15% compared to the equivalent new models on Apple's online store. Note that Apple's ...
m4 macbook air pink

Apple Now Selling Refurbished M4 MacBook Air Models

Friday June 13, 2025 3:34 pm PDT by
Apple today added M4 MacBook Air models to its refurbished store in the United States, making the latest MacBook Air devices available at a discounted price for the first time since they launched earlier this year. Both 13-inch and 15-inch MacBook Air models are available, with Apple offering multiple capacities and configurations. The refurbished devices are discounted by approximately 15...

Top Rated Comments

dethmaShine Avatar
182 months ago
Google's response

“This outcome is disappointing for anyone who believes that open innovation benefits users and promotes creativity and competition,”

Google's hypocrisy goes to 11.
Score: 6 Votes (Like | Disagree)
JAT Avatar
182 months ago
Oh god, Google and Nokia not listed. Can't wait for the next round of annoying patent wars. :rolleyes:
Score: 6 Votes (Like | Disagree)
shartypants Avatar
182 months ago
Refreshing to see so many patents being sold to a consortium, hopefully that will cut down on suing, although I'm sure Google is not happy. Microsoft will probably help out Nokia since they are building their phones.
Score: 5 Votes (Like | Disagree)
cmaier Avatar
182 months ago
Oh god, Google and Nokia not listed. Can't wait for the next round of annoying patent wars. :rolleyes:

Nokia has its own ammunition. Google, on the other hand....
Score: 4 Votes (Like | Disagree)
kdarling Avatar
182 months ago
So this "consortium" exists as an agreement between major players in the telecom industry to limit the use of these technologies to its members, thereby locking out new competitors?

Nope.

In my great-granddaddy's day they called that a "trust", and passed laws against it.

It's still against anti-trust laws to withhold a group of patents vital to an industry.

That's why the government had a little talk with Apple before they bid in the auction. All the other companies have a long history of licensing patents. Apple does not.

I also suspect this auction is involved with why Apple made a deal for Nokia licenses so suddenly. I think they were showing the government that they could play nice and/or it was a requirement to be a consortium member.
Score: 3 Votes (Like | Disagree)
s1m Avatar
182 months ago
I don't understand how does that company declare bankruptcy? Don't companies use their patents -> give them some steady income? Although "bankruptcy" is subjective, they just made 4,5billions, I don't think they're bankrupt any more :)

Bankruptcy in its purest form is having less assets than liabilities. The fact that you own a patent doesnt mean that you are actually earning money for a start. You could have the patent on cold fusion but not earning any money as no-one might be licensing the patent.

Also in terms of bankruptcy - the value attributed to the patent asset might be a lot less than the amount paid at this point. Think of it as a fire sale - for bankruptcy purposes they might value the patent a lot lower than it was eventually sold for.

Finally - although they got $4.5Bn for the patents - they might have had $10Bn in liabilities...
Score: 3 Votes (Like | Disagree)