May 5, 2011 | Sarah Reedy | Post a comment | inShare
RPX Corp. is the latest company to consider a bid for Nortel Networks Ltd. 's 6,000 wireless patents.
Bloomberg reports that Andrew Kent , an attorney representing the patent-buying firm, confirmed RPX's interest during a May 2 bankruptcy court hearing. The company questioned rules governing joint bids involving multiple companies, Kent told the judge.
RPX also represents Cisco Systems Inc. (Nasdaq: CSCO) and Sony Corp. (NYSE: SNE).
Google (Nasdaq: GOOG) kick-started the auction last month with a $900 million bid for the patents, which Research In Motion Ltd. (RIM) (Nasdaq: RIMM; Toronto: RIM) has said it wants in on as well. (See Google Bids $900M for Nortel's Patents and RIM May Also Bid for Nortel Patents.)
Why this matters
Greater interest in Nortel's patents means the going price will get steep. Bidders must offer at least $929 million to best Google, according to court rules. And RPX could be prepared to pay up. It has already shelled out more than $250 million on patents since it was formed more than three years ago, and Nortel's patents would give it significant power.
If it wins, RPX would gain control of Nortel's valuable Long Term Evolution (LTE) licenses, which it would dole out to handset makers like RIM and Google's handset partners.
For more
Nortel's wireless and data networking patents represent the bankrupt company's final asset sale, scheduled for June 20. It looks to be a doozy.
Rumor: Nortel Seeks Bids for Its Patents
Who's Really Sitting on an LTE Goldmine?
RIM CEO Calls Nortel LTE Patents a 'National Treasure'
Nortel's LTE Patent Goldmine
The LTE Scraps From Nortel's Table
Nortel: What's Left on the Shelf?
Nortel Could Sell LTE Patents Separately
Nortel Hangs On to Its LTE Smarts
Nortel Preserves Patent Plan
Nortel Wireless Winner: It's Ericsson!
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