Consortium of Nortel patents purchasers: How much they paid and what they get (according to anonymous internal sources)

After writing about Nortel gets $4.5 billion for 6,000 patents and patent applications, it is good to read some details. According to internal sources with promised anonymity by “I, Cringely” (emphasis added)

“Here’s the consortium participation as I understand it. RIM and Ericsson together put up $1.1 billion with Ericsson getting a fully paid-up license to the portfolio while RIM, as a Canadian company like Nortel, gets a paid-up license plus possibly some carry forward operating losses from Nortel, which has plenty of such losses to spare. For RIM the deal might actually have a net zero cost after tax savings, which the Canadian business press hasn’t yet figured out.

Microsoft and Sony put up another $1 billion.

There is a reportedly a side deal for about $400 million with EMC that has the storage company walking with sole ownership of an unspecified subset of the Nortel patents.

Finally Apple put up $2 billion for outright ownership of Nortel’s Long Term Evolution (4G) patents as well as another package of patents supposedly intended to hobble Android.

At the end of the day this deal isn’t about royalties. It is about trying to kill Android.”

Bob has been in the industry for a long time, so there are probably some elements of truth in his report and worth considering. [HT Digital Trends]

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