SureTrader
Interactive Brokers Advertisement
Home > Boards > US Listed > Telecommunications Hardware > InterDigital Communications (IDCC)

After Buying 1,000 IBM Patents, Google Eyes InterDigital Licenses

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (3) | Next 10 | Previous | Next
Gamco Member Profile
Member Level 
Followed By 31
Posts 8,514
Boards Moderated 0
Alias Born 01/02/03
160x600 placeholder
InterDigital Announces Date for Third Quarter 2017 Financial Results "GlobeNewswire Inc." - 10/10/2017 8:30:00 AM
Boston, Chicago and Atlanta Top List of Cities Poised to Benefit Most From Smart City Tech "GlobeNewswire Inc." - 10/5/2017 4:00:00 AM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 10/2/2017 4:24:54 PM
InterDigital Launches Chordant Business, a Bridge to the Smart Future "GlobeNewswire Inc." - 10/2/2017 8:00:00 AM
InterDigital Expands Footprint in Europe With Opening of Berlin Office "GlobeNewswire Inc." - 9/21/2017 3:00:00 AM
InterDigital Announces Increases of Regular Quarterly Cash Dividend and Stock Buyback Authorization "GlobeNewswire Inc." - 9/14/2017 5:19:19 PM
InterDigital to Present at Dougherty & Company Institutional Investor Conference "GlobeNewswire Inc." - 9/11/2017 5:30:00 PM
InterDigital Issues Revenue Guidance for Third Quarter 2017 "GlobeNewswire Inc." - 8/22/2017 8:30:00 AM
InterDigital Announces World’s First Successful Mobile Edge Computing 5G Network Architecture Trial "GlobeNewswire Inc." - 8/14/2017 8:30:00 AM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 8/8/2017 4:52:39 PM
InterDigital to Present at the 20th Annual Oppenheimer & Co. Technology, Internet & Communications Conference "GlobeNewswire Inc." - 7/31/2017 4:30:00 PM
InterDigital Joins 5TONIC Lab "GlobeNewswire Inc." - 7/31/2017 2:30:00 AM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:36:09 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:34:19 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:31:44 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:29:34 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:27:25 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:25:40 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:23:32 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:20:54 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:19:37 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:16:58 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:14:53 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:12:13 PM
Statement of Changes in Beneficial Ownership (4) "Edgar (US Regulatory)" - 7/28/2017 4:10:06 PM
Gamco Member Level  Sunday, 07/31/11 11:44:57 AM
Re: None
Post # of 419474 
After Buying 1,000 IBM Patents, Google Eyes InterDigital Licenses
By IB Times Staff Reporter | July 31, 2011 6:25 AM EDT

After losing the bidding war over Nortel Networks patents, Google Inc. (NASDAQ: GOOG) has purchased more than 1,000 technology patents from International Business Machines Corp. (NYSE: IBM). In addition, Google is eyeing on InterDigital's broad portfolio of more than 18,000 patents (awarded and pending). There were also reports that Apple Inc. (NASDAQ: AAPL) is also considering a bid for InterDigital's portfolio.

Google in mid-July recorded the acquisition of more than 1,000 patents, which was reported earlier by the blog SEO by the Sea, with the U.S. Patent and Trademark Office to bolster its portfolio and also to protect itself from patent litigation.

The patents from IBM covers a broad range of technologies, including fabrication and architecture of memory and microprocessor chips, server and router design, and software programming such as relational databases and object oriented programming.

"Like many tech companies, at times we'll acquire patents that are relevant to our business," a Google spokesman told Wall Street Journal.

Google is facing lawsuits, in the midst of patent deals, for many of its services, including Android mobile operating system. Google is also facing a patent suit from Oracle Corp. (NASDAQ: ORCL) over Java.

Following the surprising Nortel Networks patent auction price of $4.5 billion for 2 percent to 5 percent of 4G patents, Google and Apple are about to enter a patent war at the InterDigital auction, Jefferies said in a note to clients.

Currently, original equipment manufacturers (OEM) representing 40 percent of handset shipment license from InterDigital. LG and Nokia, neither of which is a current licensee, have paid fees to InterDigital in the past.

This indicates that InterDigital's patent portfolio is broadly accepted. Its owner would likely easily be able to sign cross-licensing deals with other patent holders, Jefferies said.

Earlier this month, InterDigital said it has initiated a process to explore potential strategic options, which may include a sale or other transaction. InterDigital has about 180 engineers, more than 18,000 patents (awarded and pending), and about 16 percent of the essential LTE patents versus 3 percent held by Nortel.

"InterDigital’s patent filings picked up significantly in the last ten years, meaning that the bulk of their patents (and especially the core 3G patents) do not expire until 2020 and later. In addition to the core wireless patents, InterDigital is testing a video compression technique that requires only a fraction of the normal bandwidth but does not degrade video quality. This would be of high interest to Apple and Google," said Peter Misek, an analyst at Jefferies.

Misek said InterDigital's patents could save Apple $3 to $10 per handset and could substantially increase the price of the low-cost Android phones launching in second half of 2011.

Assuming a 5 percent unit compound annual growth rate thereafter and a 10 percent discount rate, the InterDigital portfolio could be worth between $3 billion and $10 billion to Apple.

After losing the Nortel bidding war, will Google outrun Apple in the InterDigital auction? It remains to be seen who emerges as the winner.

http://www.ibtimes.com/articles/189825/20110731/google-inc-apple-inc-patent-war-interdigital-auction-nortel-networks-lg-nokia-rockstar-bidco-microso.htm


"Intellectuals solve problems; geniuses prevent them." - Albert Einstein
Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (3) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist