Nortel Networks Corporation has sold about 6,000 patents to a consortium of bidders including Apple, EMC, Ericsson, Microsoft (News 
- Alert), Research In Motion and Sony. Google is not on the list.
The sale includes more than 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patents. The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking.
Given the amount of patent infringement activity in the mobile business these days, the deal essentially means Apple, Microsoft, RIM and Sony Ericsson have gained some protection against such lawsuits, the typical resolution being cross licensing between the parties. But a firm needs a trove of patents to have something to trade.
The sale increases the likelihood of patent infringement suits against Google (News - Alert), because Google will not be seen as having sufficient protection in the form of intellectual property to cross license. Read more here.One concrete example of how this works is that Microsoft licenses Android-related intellectual property to a a number of firms, including Onkyo, Velocity Micro, and Itronix.
Among Microsoft’s important Android licensing deals is its agreement with smart phone maker HTC (News - Alert). Some analysts believe the license earns Microsoft five dollars for every HTC Android device sold, and some think the amount could be higher than that.
Onkyo specializes in audio and visual electronics, while Velocity Micro makes the Android-based “Cruz” pad and reader. General Dynamics (News - Alert) Itronix is primarily a defense contractor; it makes a ruggedized Android-based wrist-worn GPS system.
Microsoft and its licensees obviously believe Microsoft-owned technologies are included in Google’s “open” Android operating system. By executing licenses with Microsoft, the companies get insurance against damage claims in the event Microsoft goes after Google for patent infringement.
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Gary Kim is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
Edited by Jennifer Russell
