Rockstar Consortium gets DOJ green light to buy Nortel's patent portfolio2
Rockstar CEO John Veschi, formerly Chief IP Officer of Nortel, said that the Consortium is looking forward to working with companies who want access to what was once innovative technology from Nortel, and grant licenses to these tech firms. In its prime, Nortel was known as Northern Telecom, a multinational telecom company. The DOJ had initially held up signing off on the deal because they were afraid that the newly acquired patents would be used in an offensive against Android. The Feds would like to see the Consortium using the intellectual property it purchased strictly to defend itself from Android initiated lawsuits.
Apple is the biggest investor in Rockstar, contributing $2.6 billion of the $4.5 billion spent to buy the patents. And if you're wondering why 5 big tech giants would come together to buy the patent portfolio from Nortel, the reason is that they have a common enemy in Mountain View by the name of Google. The latter tried the low bid approach and tried to win the patents in an auction against Rockstar, but its $90 million bid was woefully short. Apple itself is happy to have an ownership position in the IP communications patents purchased from Nortel just in case Motorola does some saber rattling with its large portfolio of IP patents.