Apple, RIM and Microsoft defeat Google to win Nortel patents for $4.5bn

Google has lost its attempt to gather a treasure trove of patents from defunct Canadian telecoms company Nortel after it was trumped by an alliance of Apple, Microsoft, RIM, Sony and EMC with a bid of $4.5bn.

The patents covered portfolios of wireless, LTE, networking, optical, service provider and semiconductor technologies, among others. Interest in the auction was expected to be high after Google and Apple received regulator approval to bid.

Microsoft had already said that it was wary of Google being given this opportunity, arguing that it threatened to undermine numerous licensing agreements it had in place with Nortel. Clearly other firms felt similarly, leading to the alliance winning the bid.

The outcome will suit Redmond perfectly, giving it a strong position in any forthcoming legal disputes. Microsoft already has several deals in place with Android manufacturers to receive a portion of handset sales for the use of its technologies.

Apple will also be pleased to have gained the rights to the patents as it faces several legal challenges of its own, recently agreeing to pay a sum of around $420m to Nokia over patent infringement issues.

Kent Walker, senior vice president and general counsel at Google, said the firm was disappointed to have lost the auction and argued that the winners would stifle innovation by merely sitting on the patents.

"This outcome is disappointing for anyone who believes that open innovation benefits users and promotes creativity and competition," he said.