Two months ago, Google disclosed that they were bidding on bankrupt Nortel’s patent portfolio. Why? They claim it’s a defensive maneuver to protect the “relatively young” company from would-be patent predators. And Google is very serious about it. They put up the $900 million “stalking-horse bid” (the initial bid) for the over 6,000 patents. Given the stakes, it should be no surprise that the U.S. Department of Justice is looking into the bidding. But interestingly, it may not be Google they’re too concerned with.
As The Wall Street Journal reports today, the DoJ “hasn’t found any major competitive issues that would lead it to challenge [Google's] purchase of the patent portfolio.” But the same is apparently not true of Apple. The government is concerned about Apple’s history of intellectual property protection, WSJ cites sources as saying.
In other words, DoJ feels fairly confident that Google would not be aggressive in going after rivals if they won the patents. Apple? Yeah, not so much. They’re concerned that these patents would simply be new weapons for Apple to use at their disposal.
Alexander Poltorak, CEO of General Patent Corp goes one step further, telling WSJ, ”You’re acquiring a stockpile of nuclear weapons as far as patents go.”
Of course, it hasn’t even been confirmed that Apple will be bidding on the patents. But again, given the stakes, it seems to be a pretty fair bet that they will. Another report from Bloomberg a few weeks ago says that RIM is also considering a bid. While not stated, the DoJ probably isn’t too concerned about them either, since they’re a smaller player than the big boys, Apple and Google.
But what about the biggest boy? Microsoft.
Microsoft is actually not believed to be bidding on the patents because they already have a licensing agreement on them. And this agreement would transfer over no matter who ultimately won the patents. And that’s good news for Microsoft. If DoJ has a problem with Apple bidding on the patents, you can bet they would scream bloody murder if Microsoft did.
First of all, Microsoft has a very prolific history of aggressive IP lawsuits. More importantly, in the tech space, they are the king of patents. (Well, aside from old guard IBM.) While Apple is believed to have something like 4,ooo – 5,000 patents, Microsoft has something like 17,000.
Google? They have fewer than 1,000, we hear. Gaining Nortel’s 6,000+ would leapfrog them ahead of Apple, but they’d still be very far behind Microsoft. Meanwhile, if Apple won the rights to the patents, they’d cross the 10,000 mark. And Microsoft? They’d be approaching 25,000.
But again, the number is less important than the suspected intention. Google has simply not shown a history of aggressive IP protection. In fact, they’ve apparently never affirmatively asserted a patent, in legal terms. (Basically, they’ve only delved into IP agression as a pre-emptive or defensive measure.)
Certainly, you could argue that this is because with less than 1,000 patents, they’re in no position to go after anyone. But the DoJ seems convinced enough that they won’t even with these 6,000 new patents in their pocket. Apple, apparently, is going to need to do some more convincing along those lines.
The auction takes place on June 20. The rhetoric from all these companies leading up to it should get interesting.
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Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Among the key offerings from Apple’s product line are: Pro line laptops (MacBook Pro) and desktops (Mac Pro), consumer line laptops (MacBook) and desktops (iMac), servers (Xserve), Apple TV, the Mac OS X and Mac OS X Server operating systems, the iPod (offered with...
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...
Microsoft, founded in 1975 by Bill Gates and Paul Allen, is a veteran software company, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software. Starting in 1980 Microsoft formed a partnership with IBM allowing Microsoft to sell its software package with the computers IBM manufactured. Microsoft is widely used by professionals worldwide and largely dominates the American corporate market. Additionally, the company has ventured into hardware with consumer products such as the Zune and...
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