The following is excerpted from a May 2, 2011 article by Josh Long published at vision2mobile:
Bankrupt Nortel Networks Limited has moved closer to selling its vast portfolio of patents and patent applications.
The company announced on Monday that Canadian and U.S. courts have approved a “stalking horse" asset sale agreement with a Google subsidiary, Ranger Inc., for a purchase price of $900 million.
The orders from the U.S. Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice also establish bidding procedures for an auction that allows other qualified bidders to snatch Nortel’s patent portfolio from Google by offering a higher or otherwise better offer.
Kent Walker, senior vice president and general counsel of Google, indicated in a blog last month that the acquisition of the Nortel patents could dissuade the company’s competitors from suing Google for patent infringement.
Although Google has advocated for patent reform, “one of a company’s best defenses against this kind of litigation is (ironically) to have a formidable patent portfolio, as this helps maintain your freedom to develop new products and services," Walker wrote.
Read the full article here.