Apple Has Outright Ownership of Nortel's LTE (4G) Patents?

Robert Cringely claims to have some details of the deals that were in place for the $4.5 billion acquisition of Nortel's patent portfolio. The patents were ultimately won by a consortium that included Apple. The auction drew interest of many of the major players in mobile today due to Nortel's large portfolio of Long Term Evolution (LTE, also known as "4G") related patents.

nortel logo1

Reuters recapped some of the behind the scenes maneuvering amongst the players. The bidding began with 5 different parties: Apple, Intel, Google, a consortium of Ericsson, RIM, Microsoft and EMC, and a consortium led by RPX. As the bidding increased, partnerships formed and Apple joined up with the Ericsson/RIM/Microsoft/EMC consortium. Meanwhile, Intel partnered with Google whose bidding "tapped out" over $4 billion. The patents were ultimately won for $4.5 billion.

Cringely claims that within the consortium were different arrangements for each party. RIM and Ericsson reportedly put up $1.1 billion together and includes "fully paid up" license rights to the portfolio. Microsoft and Sony also put up another $1 billion with unspecified terms, while EMC contributed $400 million for a subset of patents.

Meanwhile, the largest contributor of the consortium was said to be Apple who put up $2 billion "for outright ownership of Nortel's Long Term Evolution (4G) patents as well as another package of patents supposedly intended to hobble Android." Apple obviously has a large interest in LTE/4G for future iPhones and iPads. Apple recently settled with Nokia and agreed to a license of their patents for use in Apple's mobile devices. Nokia is also said to have a significant number of LTE related patents. Ownership of such patents could give Apple leverage and/or provide licensing fees from other mobile manufacturers that offer LTE technology.

Popular Stories

Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST 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 at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
hikawa phone grip stand apple%402x

Apple Launches Second Limited-Edition iPhone Accessory in a Month

Friday November 21, 2025 3:53 am PST by
Apple has begun selling the Hikawa Phone Grip and Stand, a new limited-edition iPhone accessory designed with accessibility in mind. Designed by LA-based Bailey Hikawa to celebrate the 40th anniversary of accessibility at Apple, the grip uses magnets to securely snap onto any iPhone with MagSafe. Apple says it can be removed with ease, and doubles as a stand with two different viewing...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
ipad black friday 2025

The Best Early Black Friday iPad Deals

Thursday November 20, 2025 10:20 am PST by
Black Friday is just over a week away, and iPad deals have finally started to flood in at retailers like Amazon and Best Buy. Below we're tracking discounts on every current generation iPad, including lowest-ever prices on M3 iPad Air and M5 iPad Pro, plus steep markdowns on iPad and iPad mini. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a ...
watchos 26 workout app

Apple Watch Users Claim Workout App Is Now Worse in Every Way

Thursday November 20, 2025 7:01 am PST by
Apple Watch owners have been voicing their frustration online over changes to the Workout app that Apple introduced in watchOS 26, with many finding the redesigned interface makes starting exercises difficult and exasperating. When Apple launched watchOS 26 in September, the Workout app went from large, easily tapped workout tiles to a scrolling, corner-button interface. Instead of tapping a ...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
apple wallet drivers license feature iPhone 15 pro

Two More U.S. States Commit to Offering iPhone Driver's Licenses in Apple Wallet App

Thursday November 20, 2025 8:21 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. Earlier this week, Illinois became the 13th state in the U.S. to offer the feature. Subsequently, we shared a list of additional states that are committed...

Top Rated Comments

8CoreWhore Avatar
188 months ago
Let's not forget, if Apple hadn't developed the iPhone - for years in secrecy, this form factor phone wouldn't exist. If Apple hadn't done the same with the iPad, tablets wouldn't exist.

Samsung, etc, wouldn't know what to do. There'd be nothing to copy.
Score: 20 Votes (Like | Disagree)
SandynJosh Avatar
188 months ago
It's interesting to me how rapidly Apple has advanced in the phone business.

Four years ago it entered what was called the upper part of the phone market with aspirations of capturing 5%. They had no patents relating to phones per sec. just some UI patents.

Within that first year Apple became the phone to own, and they were only on one network in one country. Now, Apple is greater then 5% worldwide, and a third of the USA market for smart phones. The iPhone 4 and 3GS are the number one and two selling phones, and now Apple owns a portfolio of important communications patents other manufacturers would love to have.

I cannot think of a similar market that has been so rapidly transformed by a new player as the smart phone market. Maybe the tablet market, but nothing else comes to mind.
Score: 19 Votes (Like | Disagree)
xxBURT0Nxx Avatar
188 months ago
Have you ever used a Samsung Galaxy S2? In case you do, don't be surprised when you sell your iPhone and switch to the Galaxy -- I did. Not only the hardware of the Galaxy is superior to Apple's hardware, the software is also better in every aspect - and unlike iOS, Android does NOT try to restrict the user whenever and wherever possible.

Apple has lost the leadership and no longer has the better products; iOS 5 and iCloud are "me too" designs that basically only implement features that Android has had for a long time now. Since being good is not sufficient when somebody else is better, Apple is now trying pathetic legal games to regain the pole position.
I actually do enjoy android, but the galaxy phones are very similar spec wise to iphones, typically using the same cpu, just different branding.

Jailbreaking also unrestircts apples walls which makes iOS actually usable.... but android is just as hampered. phones are still being released with fryo when there has already been two other versions of android released and ice cream announced.
Score: 15 Votes (Like | Disagree)
xxBURT0Nxx Avatar
188 months ago
^^ so you think companies should sit back and let their competitors buy the patent set????

That would be a terrible business decision. All of their competitors were bidding on them for the same reasons, would have been stupid to pass on trying to obtain these patents.
Score: 15 Votes (Like | Disagree)
NebulaClash Avatar
188 months ago
I wonder if Apple would actually make other manufacturers license LTE. I'm not sure how good that would be.

Not Apple's style to do that. This strikes me as a defensive purchase. This is how it would go:

Competitor: "Aha! Pay up, Apple. We own these patents that cover the iPhone!"

Apple: "Don't think so. We own the LTE patents. Nice LTE phone you have there, shame if anything were to happen to it."

Competitor: "Never mind."
Score: 14 Votes (Like | Disagree)
PCClone Avatar
188 months ago
Have you ever used a Samsung Galaxy S2? In case you do, don't be surprised when you sell your iPhone and switch to the Galaxy -- I did. Not only the hardware of the Galaxy is superior to Apple's hardware, the software is also better in every aspect - and unlike iOS, Android does NOT try to restrict the user whenever and wherever possible.

Apple has lost the leadership and no longer has the better products; iOS 5 and iCloud are "me too" designs that basically only implement features that Android has had for a long time now. Since being good is not sufficient when somebody else is better, Apple is now trying pathetic legal games to regain the pole position.

Samsung makes cheap crap. The vibrant was the worst phone ever. Al they do is copy apple and then make a POS.
Score: 13 Votes (Like | Disagree)