All the latest UK technology news, reviews and analysis

Apple to pay $2.6bn of the $4.5bn bill for Nortel's patents

by Khidr Suleman

22 Jul 2011

Be the first to comment

  • Tweet this
Apple iPhone 4 in white and black

Apple has confirmed that it will cover the lion's share of the acquisition cost for Nortel's patent portfolio, which it bought as part of the Rockstar consortium alongside RIM, Microsoft and Sony.

Cupertino will pay $2.6bn towards the acquisition, more than half of the $4.5bn purchase price, according to a filing with the US Securities and Exchange Commission.

The patents cover a range of areas which will be useful to the iPhone maker, including wireless, LTE, networking, optical, service provider and semiconductor technologies.

It is unclear how the consortium will split the assets, but it looks like Apple has put itself in prime position to secure the best properties.

Florian Mueller, a software patents expert, told V3 that the vendors are likely to have made a deal before the bid was secured.

"A rough plan for the divvying-up of the relevant patents should always be put in place beforehand, especially in this case as it was such as huge transaction," he added.

Apple was forced to pay Nokia around €420m as part of a patent settlement last month, and is likely to have to make quarterly licensing payments of around €95m, so it is unsurprising that Apple is trying to bolster its portfolio of technology patents to avoid having to pay others in the future.

It also gives the firm yet more leverage over rival Google and its Android platform which threatens to pose a serious challenge to iOS.

Do you agree?

 

Add your comment

We won't publish your address
By submitting a comment you agree to abide by our Terms & Conditions. Your comment will be moderated before publication.

Poll

Flame virus poll

Are you confident that the UK's IT infrastructure is secure from attack in the wake of the Flame malware revelations?

25%

1%

11%

63%

Connect with V3.co.uk

Sign up to our daily or weekly newsletters

Riso

Colour printing: why the bill keeps outstripping the budget

The wrong printers, for the wrong tasks on the wrong contracts

Qlikview

Magic quadrant for business intelligence platforms

Who leads the BI pack and who should we be watching out for?

Helpdesk/Service Analyst x3

Helpdesk/Service Analyst x 3 3 Month Contract...

2nd/3rd line Technical support EMEA (FRENCH SPEAKING)

French Technical support Specialist (2/3rd Line) CCNA...

ECM Project Manager - CMS, Document Management, Web 2.0

ECM Project Manager - CMS, "Document Management", Web...

PRESALES CONSULTANT/TECHNICAL CONSULTANT (CCNA, MCITP)

Skills - Presales, Consultant / Consultancy, Technical...

To send to more than one email address, simply separate each address with a comma.