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RIM could challenge Google with move for Nortel patents

by Phil Muncaster

16 Apr 2011

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BlackBerry maker RIM could be set for an audacious bid for Nortel's wireless technology patents in a deal which would have to top the $900m already offered by Google.

Citing two people familiar with the matter, Bloomberg reported on Saturday that RIM is currently considering the offer, which involves around 6,000 patents and patent applications.

Another option could be that RIM joins a group of technology companies including handset makers to bid for the patents, in a move which could see Google miss out, one of the sources told Bloomberg.

The portfolio includes patents for wireless video as well as Long-Term Evolution technologies , which could become a key in the next few years as such services are switched on in the UK, US and beyond.

The rules of the bidding process stipulate that any company wanting to match Google's bid must offer at least $929m, and any subsequent bids must be at least $5m more, said Bloomberg.

Canadian telecoms equipment maker Nortel entered into administration in 2008 and has been selling off pieces of its sizeable business ever since. Nokia Siemens Networks, Ericsson, Avaya, Ciena and Genband are among the vendors to have benefitted.

Google has said it is looking to acquire the patents to use as a defence against legal challenges, such as those faced from Oracle and Microsoft over Android.

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