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Hedge Funds know the facts and they want your money.
This play is not for the timid. The sales price for the patents will take days to settle. The price is going up for certain.
After the bids start to come in and get raised the fireworks will begin! Presently the low price is a gift from the sellers and flippers.
They do not know what they are doing.
The NOL value should be worth a few billion dollars. The excess of this patent sale will change the entire dynamics of the stock.
The stalking horse offer is the floor and WILL be shopped around by Nortel. Expect the actual bidding to actually begin around 3 Billion and hopefully much higher.
Google should have the right to top the highest bid or get a breakup fee. Google is not going to lose this battle and with it getting a 4% breakup fee will continue to bid up the price if Apple is willing to pay over 6 billion.
Google will top out at 6 billion and settle with Oracle and still have to pay Apple. The consequences to Google will change the entire business operations of the Andriod phone segment.
Nortel will satisfy the creditors and will have money left over.
Many smart entities are aware of the low bid Google gave but the press will not tell the public of the relative value of a Stalking Horse bid to the final bid. I just listed two prime examples of Nortel's final sale being twice higher then the stalking horse bid.
Take your own action but what more can I tell you. I can lead a horse to the river but I cannot force it to drink the water.
***************Private equity firm MatlinPatterson has offered $725m for most of Nortel Network’s core wireless operations, according to a report in the Financial Times. Their bid exceeds the $650m stalking horse offer made by Nokia Siemens Networks.
In 2009, Nokia Siemens agreed a $650m stalking horse offer for Nortel Networks' main wireless assets ahead of a formal auction. Ericsson eventually won the auction by agreeing to pay $1.13bn for the assets, outbidding Nokia Siemens and a third bidder.
************The 363 auctions of the various Nortel businesses involved live bidding and renegotiation of documentation and
enhanced terms. Each of the 363 auctions conducted by Nortel to date have resulted in a substantial increase in value. For example, the stalking horse bid for Nortel’s Enterprise Solutions business was from Avaya, for $475 million. The business was eventually sold following a vigorous 363 auction lasting several days to Avaya for $915 million (andwith enhanced legal terms).
**************The purchase price for the MEN business to be paid by Ciena increased from $390 million cash and 10 million shares, to $769 million in cashand convertible notes.
Stalking Horse value of $1 billion to Nortel.
This value is just the opening value and experts have stated it will go for around 3 billion at least.
The value to shareholders is obvious and will allow an EC to be formed. Time will prove this to be correct.
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Benefits to the Bankruptcy Estate
While it is clear how bidding incentives benefit potential “stalking horses,” what’s in it for the bankruptcy estate? Isn’t it like having to pay guests to show up at your own party? Yes it is; however, at the end of the day (or the conclusion of tile sale, whichever comes first), the bankruptcy estate should benefit by higher prices for the assets being sold because of increased bidder competition. This can occur in at least two ways.
First, use of bidding incentives may insure that the bankruptcy estate will have at least one serious and qualified bidder, in this case, the “stalking horse.” (There are few things more depressing than a bankruptcy sale with no buyers.) Having eliminated the risk of becoming uncompensated losers, “stalking horse” bidders will be much less reluctant to invest the necessary resources in developing and negotiating a meaningful offer. Generally, the quid pro quo for the bankruptcy estate extending bidding incentives to the proposed “stalking horse” is a negotiated minimum bid. This encourages the “stalking horse” to offer its highest price up front and discourages a bidding strategy which holds back the highest price until later in the sale process. Not only does this set an acceptable minimum price for the assets being sold, but it also sends a message into the marketplace. Depending on how well the “stalking horse” is known in a particular business or industry, its very participation in the sale may legitimatize the process. Business competitors of the “stalking horse,” or other potentially interested purchasers, may be drawn to participate in the sale process if only on a “me too” basis. (“If Company XYZ wants the deal that badly, shouldn’t we also be bidding?”). Simply put, the participation of a “stalking horse” may create the initial momentum necessary to attract other bidders and increase the likelihood of lively price competition. If so, the economic cost of any bidding incentive (payment of the “break-up fee”) will probably be recouped by the bankruptcy estate in the form of a higher ultimate net sale price.
Second, the bankruptcy estate may be freed to more effectively “shop” the initial deal and attempt to generate “higher and better” offers from other potential bidders. With the firm initial bid from the “stalking horse” in hand, the bankruptcy estate can “shop” the deal in confidence knowing that it already has a deal if it cannot obtain competing offers better than the firm minimum price. Assuming that competitive bidding can be generated, bidding incentives (generally contained in a bankruptcy court-approved sale procedure order) can also establish the ground rules for “shopping” the deal in an orderly and structured bidding process.
A Natural Tension
As beneficial as bidding incentives may be to the bankruptcy sale process, they also have a dark side. They can also discourage competitive by creating structural impediments to other buyers participating in the sale. The same economic inducements create a natural tension between encouraging the “stalking horse” bidder and discouraging competing bidders. Savvy “stalking horse” bidders may use bidding incentives not only for compensatory purposes, but also as exclusionary devices to dampen price competition. For every dollar paid as an inducement to the “stalking horse” bidder, the price of the assets being sold is inevitably increased for any competing bidder. Essentially, there are no free lunches.
Moreover, some of the non-economic structural terms of the sale contained in bidding incentives—inserted for the benefit, or at the behest, of the “stalking horse” bidder—may also make participation in the sale less desirable for competing bidders. Being able to structure the sale process through use of bidding procedures gives the “stalking horse” bidder a definite advantage and will often result in a somewhat less than level playing field for other potential bidders. In scrutinizing and approving the use of bidding incentives, bankruptcy courts must attempt to strike an appropriate balance between their competitive and anti-competitive aspects.
********************In 2009, Nokia Siemens agreed a $650m stalking horse offer for Nortel Networks' main wireless assets ahead of a formal auction. Ericsson eventually won the auction by agreeing to pay $1.13bn for the assets, outbidding Nokia Siemens and a third bidder.
**********************Sept. 14, 2009 (Bloomberg) -- Avaya Inc., the U.S. maker of corporate phone systems, agreed to buy Nortel Networks Corp.’s enterprise-telecommunications unit and other assets, winning an auction for the business with a bid of $915 million.
Avaya will pay $900 million in cash and $15 million for an employee-retention program, Toronto-based Nortel said today in a statement. Avaya, based in Basking Ridge, New Jersey, had made an opening, pre-auction bid of $475 million for the unit, which makes phone equipment and networks for companies.
If Google's big is doubled then the 2 billion will almost pay the creditors. The NOLs and residual will go to the preferred and common.
Note:
Typically, a stalking horse agreement also includes a provision allowing the stalking horse offer maker an option to top any rival bids that emerge.
Nobody has talked about the NOL value.
The losses should be valued and factored into the stock but nothing. Why is that this valuable asset is being forgotten.
Is anybody aware this asset is worth alot of money?
$6 billion loss on last report.
On February 5, 2009, the U.S. Court also granted a motion by the U.S. Debtors to impose certain restrictions and notification procedures on trading in NNC common shares and NNL preferred shares in order to preserve valuable tax assets in the U.S., in particular net operating loss carryovers and certain other tax attributes of the U.S. Debtors.
Once the debtors are paid then this is an Equity Committee's asset. The judge is aware of the residual if the patents sell for a couple of Billion that is why he allowed two committees today.
More to come!!!
raise capital to satisfy claims, including Nortel’s ability to sell assets to satisfy claims against Nortel; realize full or fair value for any assets or business that are divested; utilize net operating loss carryforwards and certain other tax attributes in the future; avoid the substantive consolidation of NNI’s assets and liabilities with those of one or more other U.S. Debtors; operate Nortel’s business effectively under the new organizational structure, and in consultation with the Canadian Monitor, and the U.S. Creditors’ Committee and work effectively with the U.K. Administrators, French Administrator and Israeli Administrators in their respective administration of the EMEA businesses subject to the Creditor Protection Proceedings; continue as a going concern; actively and adequately communicate on and respond to events, media and rumors associated with the Creditor Protection Proceedings that could adversely affect Nortel’s relationships with customers, suppliers, partners and employees; retain and incentivize key employees as may be needed; retain, or if necessary, replace major suppliers on acceptable terms and avoid disruptions in Nortel’s supply chain regarding our remaining businesses and stranded contracts; obtain court orders or approvals with respect to motions filed from time to time; resolve claims made against Nortel in connection with the Creditor Protection Proceedings for amounts not exceeding Nortel’s recorded liabilities subject to compromise; prevent third parties from obtaining court orders or approvals that are contrary to Nortel’s interests; and (b) risks and uncertainties associated with: limitations on actions against any Debtor during the Creditor Protection Proceedings; the values, if any, that will be prescribed pursuant to any court approved plan to outstanding Nortel securities and, in particular, that Nortel does not expect that any value will be prescribed to the NNC common shares or the NNL preferred shares in any such plan; the delisting of NNC common shares from the NYSE; and the delisting of NNC common shares and NNL preferred shares from the TSX; and (ii) risks and uncertainties relating to Nortel’s business including fluctuations in foreign currency exchange rates; any requirement to make larger contributions to defined benefit plans in the future; a high level of debt, arduous or restrictive terms and conditions related to accessing certain sources of funding; the sufficiency of workforce and cost reduction initiatives; a failure to protect Nortel’s intellectual property rights; any adverse legal judgments, fines, penalties or settlements related to any significant pending or future litigation actions; failure to maintain integrity of Nortel’s information systems;; and Nortel’s potential inability to maintain an effective risk management strategy.
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For the retiree's committee to be allowed then the stock holder's equity committee is not far behind. Large patenr sale and NOL and other going concerns are being overlooked.
RIM Wants to Out-Bid Google, Apple and Nokia for Nortel's Patent Treasure Trove
4/16/2011 by: Christian Zibreg
http://www.brightsideofnews.com/news/2011/4/16/rim-wants-to-out-bid-google2c-apple-and-nokia-for-nortels-patent-treasure-trove.aspx
Earlier this month Google announced a bid for key wireless technology patents owned by Canadian telecommunications company Nortel which filed for bankruptcy in 2009. And now, BlackBerry maker Research In Motion is reportedly looking to out-bid Google's $900 million offer, Bloomberg reports:
RIM, maker of the BlackBerry smartphone, is weighing an offer that would keep Google from gaining control of about 6,000 Nortel patents and patent applications, said the people, who couldn’t be identified because the plans aren’t public.
Source claim "a group of technology companies, including mobile-phone makers," may also join the fray in order to keep Google from laying its hands on Nortel's patent chest. Apple, the most-sued technology company in the world, is also said to be one of the bidders. It's a valid assumption Apple would want to out-bid Google, RIM or whoever else may fight for those patents. Google's officially in the race, RIM is likely joining the bid. John Paczkowski of the Wall Street Journal's Digital Daily blog wrote last December that Nokia, Apple, Google and RIM were all participating in the auction.
Apple has a vast cash hoard of more than $60 billion. Company executives said a number of times they were keeping their options open and saving this money for big things, key acquisitions if you will that would give Apple a significant edge over its competitors. Patents are everything in the technology industry, even more so in a sue-happy place like Silicon Valley. Whoever wins the bid gets to control thousands of wireless patents said to be worth at least an estimated $1 billion. Clearly there are people willing to pay big bucks to own Nortel's intellectual property believed to shield from infringement lawsuits. Google's motivation is unambiguous, the patent portfolio will "create a disincentive for others to sue Google", their general counsel Kent Walker wrote in a blog post.
Apple, like pretty much everyone else in the mobile space, is engaged in legal battles with its rivals, namely HTC, Motorola and Nokia, over a bunch of wireless and cellphone patents. RIM CEO Mike Lazaridis notably called Nortel's patents in the past a "national treasure." The valuable patents cover key 4G LTE wireless technologies. Should Apple get them, they could theoretically seek royalties from everyone else in the industry while creating a disincentive for others to sue Apple, to paraphrase Google's counsel. This might be especially unpleasant for Android handset makers as Google's open-sourced software is said to be a patent bomb waiting to explode.
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If this stock is trading on Google's one billion stalking horse offer then wait till the bidding was heats up.
Press reports will make this the biggest event this year.
Everybody who has a phone will be tuned into this war.
Dollars coming in a few days.
How long will the MM keep the brakes on this company?
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Nortel patents: Will Google share the protection?
By Tom Foremski | April 4, 2011, 1:06pm PDT
Larry Dignan at ZDNet reports:
With the move, Google would get about 6,000 patents covering wired, wireless and digital communications technologies.
Google’s top lawyer, Kent Walker wrote:
Google is a relatively young company, and although we have a growing number of patents, many of our competitors have larger portfolios given their longer histories.
The PC industry had a problem when it was starting out in that PC technologies represented a growing basket of technologies that had lots of IP belonging to many companies.
If would have been a nightmare to figure out all the IP ownership and that would have had a chilling effect on the development of the entire industry.
But there was a solution: the key players in the PC market would cross-license their patent portfolios to each other. This provided each with protection from legal challenges because they had automatic licenses to similar IP. And it also provided an umbrella of protection for PC industry innovators, which continued to lower PC prices and expand the market without having to worry about a legal minefield.
Will Google do the same? Could Google do the same and use its expanded patent portfolio to shield other innovators from dubious lawsuits so that innovation in Internet services can continue without interference from patent trolls?
After all, Google does benefit from continued innovation by third-parties, in acquisitions; and in others using its services, such as its maps and payments services. Startups don’t have patent portfolios large enough to protect their work.
Google could use its clout to protect the work of startups from legal challenges. Or it could use its IP to attack startups that might challenge its revenues.
It’s a double edged sword and it’ll be interesting to see how it is used.
But will Google win its $900m bid?
What puzzles me is why did Google disclose its bid? It’s taking a big risk in publicizing its interest in the Nortel portfolio. Its bid is now a “stalking horse” in that it acts as a reserve price for an auction that takes place in June.
Google could have waited until the auction and then made its move. By advertising its interest in the patents it reveals areas in its IP portfolio where it is weak.
For example, hedge funds might get together to outbid Google because they could then sell licenses or pursue successful legal challenges and recoup more than their outlay.
Google has done something similar in the past with multi-billion dollar bids for wireless spectrum. It wasn’t interested in buying the spectrum itself but it was interested in influencing the market in its favor.
Is Google doing something similar by publicizing the Nortel bid so far ahead of the June auction? Or is it a strategic mistake?
*************************
Once the lawyers get the expert opinions that the patents are worth more then 1 Billion as former Nortel director Sorin Cohn said they may be worth several billion then the EC movement will start to gain favor. Legal eagles are going to move on this possibility.
The winner of these patents will have its stock price skyrocket.
The losers will experience the opposite.
What is the value of high stakes patent poker? Your business's future. Expect many players to merge and only two or three groups to be bidding. Colusion is possible but not likely.
Apple is the clear leader in ability to own the patents. Apple has over 46 billion in equity that it can tap in this fight.
Microsoft only has 32 billion net equity.
Google has 38 billion net equity.
Intel has 45 billion net equity.
Apple makes 6 billion profit every quarter though and is in the catbird seat for the Nortel patents.
The market will be watching this sale closely.
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http://marketplace.publicradio.org/display/web/2011/06/20/am-nortel-delays-patent-auction/?refid=0
Public Radio News!
Nortel delays patent auction
By David Gura
Marketplace Morning Report, Tuesday, June 21, 2011
Nortel was planning to auction off 6,000 patents on Monday, but so many big players from Google to Apple want in that the auction's been delayed.
Jeremy Hobson: Next week the bankrupt telecom company Nortel Networks is trying to sell off whatever it can. Including product patents.
As Marketplace's David Gura reports, those could be worth a lot of money.
--------------------------------------------------------------------------------
David Gura: Nortel was a telecom titan for a long time, but it took on too much debt.
Rob Enderle: Well, they kind of melted down.
That's tech analyst Rob Enderle. Lawyers were set to auction off some 6,000 patents yesterday, but ZDNet.com editor Larry Dignan says that because of "significant interest," they decided to wait a week.
Larry Dignan: They might as well have said, we're delaying this a week because we have a bidding war on our hands, and we're going to hang back and see what happens.
A lot of companies have checked out the merchandise. Google was prepared to bid almost $1 billion. So why's this stuff worth so much? Analysts say a company wants to have lots of patents, so that if it gets sued for violating one, it can counter-sue.
Dignan: And then the two parties kiss and make-up, swap a few billion, and you're done.
Dignan says Google's a young company, without a diverse patent portfolio. And rivals have sued it over its Android operating system. Dignan says with these patents, Google could build up its arsenal.
In Washington, I'm David Gura for Marketplace.
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Next move will be the lawyers saying they want an equity committee in case the patents are worth more then 2.8 Billion.
Court may delay the sale again! The EC may do a merger to allow better settlement. This will help Google finance the deal with stock.
**************
Delayed the patent auction for better money once and it will happen again when the EC motion is filed!
New day for stockholders.
Law firms are grinning thinking about all the new work they could be getting if this motion is successful. Creditors are not worried as they get paid and their lawyers want this to escalate for thier benefit.
A win - win situation, unless you are short.
Oracle v Google - it's just about money
Written by Sue Gee
Monday, 20 June 2011 00:00
Oracle wants damages against Google between $1.4 and $6.1 billion - yes that's billion! What does this mean for Android developers?
Speculation about the actual sums of money involved in Oracle's claim against Google for Android patent infringement is over - it is seeking damages between $1.4 and $6.1 billion. Google considers this out of proportion and that the calculations they are based on are seriously flawed. However, according to Google's 2010 filing with the US Securities and Exchange Commisson it has $10 billion in ready cash and equivalent and this puts the demand into a better focus.
Judge Alsup's latest move in this ongoing and protracted legal wrangle was to order Google to make public parts of a court filing originally made on June 6, 2011 that contains details of Oracle's damage claims. Google complied with that order on Friday. As a result we can read the complete unredacted version of the filing and discover not only the figures involved but Google''s objections to how they have been calculated.
The June 6 filing was intended to expose serious flaws in the way that Oracle's expert, Iain Cockburn, had calculated the claim for damages and to ask:
"leave to file a Daubert or other motion directed at the damages report"
the Daubert is a rule on the admissibility of expert testimony which if granted would mean that Iain Cockburn's evidence would not be heard by the trial jury.
What the document reveals is that, were it eventually to lose, Google would owe Oracle between 1.4 and 6.1 billion dollars, which it says is:
"a breathtaking figure that is out of proportion to any meaningful measure of the intellectual property at issue"
The filing continues:
"Even the low end of Cockburn's range is over 10 times the amount that Sun Microsystems, Inc. made each year for the entirety of its Java licensing program and 20 times what Sun made for Java-based mobile licensing."
and then states:
"Cockburn's theory is neatly tailored to enable Oracle to finance nearly all of its multi-billion dollar acquisition of Sun, even though the asserted patents and copyrights accounted for only a fraction of the value of Sun."
After explaining that Cockburn is demanding a 50% royalty on all of Google's revenue on all Android devices worldwide, Google sets out its case for concluding that:
Cockburn's legal errors are fundamental and disqualifying, and allowing him to testify about his conclusions to a jury would prejudice Google.
Here are the four arguments it advances:
First, Cockburn has no basis for including all of Google's revenue from Android phones into the base of his royalty calculation. The accused product here is the Android software platform, which Google does not sell (and Google does not receive any payment, fee, royalty, orother remuneration for its contributions to Android).
Second, Cockburn includes Oracle's "lost profits and opportunities" in his purported royalty base.
Third, after improperly inflating the base of his royalty calculation, Cockburn proceeds to apply an unprecedented fifty percent royalty rate to that base through use of improper short-cuts.In contravention of long-settled precedent, he fails to tie his royalty rate to the value of the patented technology actually at issue in this case
Fourth,Cockburn cavalierly asserts that infringement of a single claim of a single patent would result in the same multi-billion dollar award as infringement of all of the asserted claims
It is worth noting that the Judge acted swiftly to grant the request, i.e. he has allowed Google to file yet another motion, but stipulated that:
Counsel must make a strenuous effort to keep the length of the briefs and the volume of the record to a minimum.
Although both sides are acting as if there is going to be a trial within a few months this is by no means certain - it may be postponed pending the re-examination of the disputed patents by the U.S. Patent and Trademark Office and this could introduce yet more delay.
At the moment the case seems to be creating plenty of work for lawyers.
But what about the developer community - how should we respond to this unfolding scenario?
Probably full steam ahead with Android projects. Even if Google does end up shelling out billions it is isn't going to do much to halt its progress. A dispute that originally seemed to be about issues such as control of Java with a possible impact on the technology that makes Android possible, seems to have come down to nothing more than money - and money Google can probably afford to pay in the unlikely event it loses big time!
*******************
Or Google could buy the Nortel patents and bargain with Oracle!
Google has limited patents and really needs to add to its communications patents.
Having 10 Billion for Oracle means that Nortel will get a substantial big worth several Billions!!!
The price for Nortel will be over several dollars.
Connecting the dots is difficult for many who do not gamble but many will and take a chance and be very successful in the final analysis.
Once in a lifetime chance to make it big considering today's share price.
Note the press will pick this story up and the public at large will flood into this stock once the price has spiked. The big money is today as tomorrow the news will be out big time!
More news is coming out everyday. When the Equity Committee motion is mentioned then all the estimates are off the table as mere mention of such a move will shoot this stock up astronomically. Lawyers are working on getting a protocal presently for U.S., Canada and London distribution of patent funds and will follow up with more.
Think ahead and act with conviction.
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Lawyers are thinking the sales price will restore equity and will move to get the judge to allow an equity committee as it is fair to assume the stockholders will gain a standing. Such motions are pro-active and will be filed as a matter of reasonable action. These actions will stir a big commotion among many and will give credance to a share price of many dollars.
Maybe even a merger of the balance of the company into Google?
Lawyers are smart and do not trade stocks but make money filing petitions and charging $500 an hour. Do you think this is not going to happen? Yeah you are right just my imagination!
Money is not given away but earned from hard work.
This stock may be the exception as I have given you the ticket to a future of luxury.
Oracle Sues Google for Billionshttp://www.mobiledia.com/news/94553.html
By Peter Ferenczi | Mon Jun 20, 2011 2:02 pm
Oracle is suing Google for patent violations up to $6.1 billion, raising more questions about software patents' role in competition and innovation.
Oracle, a multinational company best known for its database software, claims that Google's Android mobile platform violates patents on Java software that the company acquired when it purchased Sun Microsystems last year.
Google argues that the patents are invalid, that Android doesn't infringe on them, and that Oracle's damage estimate is "a breathtaking figure that is out of proportion to any meaningful measure of the intellectual property at issue," in part because even the lower end is twenty times what Sun made yearly from licensing Java for mobile applications.
The storm of patent litigation, especially patents on software processes rather than physical inventions, has some wondering if the patent system itself needs reform to discourage holders of overly-broad software patents from stifling innovation.
For example, Microsoft is suing Motorola for software patent infringements in its smartphones and Barnes & Noble for the same in its Nook reader.
The common link: Google's Android, which both companies use in their devices. A win would not only net Microsoft money, it would make Android, the biggest competitor to Microsoft's Windows Phone OS, less attractive to phone makers, who would face paying royalties to Microsoft as well.
Ultimately, the costs are passed on to the consumer. HTC settled with Microsoft last year when the company came knocking with its portfolio of patents that Android allegedly infringes -- it may have decided that it was cheaper than fighting an expensive court battle. As a result, an estimated $5 of the purchase price of every HTC Android handset goes to Microsoft.
Because of that, it's quite possible that Microsoft is making more money from Android than from its own mobile OS.
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http://www.geek.com/articles/news/oracle-thinks-google-owes-it-6-1-billion-in-damages-20110620/
When Oracle acquired Sun in 2009 the company got its hands on a lot of desirable technology. While OpenOffice may have fallen by the way side, Oracle isn’t about to let the Java programming language and its associated patents remain untouched if they can generate some additional revenue. In fact, the company is currently in the middle of a legal battle with Google over those patents that could potentially net Oracle billions and leave Android crippled.
In August last year Oracle sued Google for infringing Java patents and copyright by developing Android. Oracle argues that Android uses technology derived from Java and therefore infringes multiple patents. It wants compensation, but with most court documents and details not publicly available, it’s hard to know specifics.
However, new documents made available late last week revealed just how much Oracle thinks is an acceptable damages payment for Google to make. According to an expert Oracle hired, Google could be looking at a bill of between $1.4 billion and as much as $6.1 billion for its infringements.
This came to light as Google’s lawyers are obviously arguing against such figures. Google argues Sun only made a tenth of that in a year from Java licensing. They also state the large sum is to help pay for the Sun acquisition which cost Oracle $7.4 billion.
The lawsuit is set to continue with Google arguing Android does not infringe Java patents. In November last year they provided more than twenty reasons why Androind doesn’t infringe. Oracle clearly smell blood though, and the fight is set to continue.
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Google is going to pay big.
$15 Billion is a fair price considering and still may lose out to others as the future is pending the victor on these patents.
Equity Committee should be started in the near future once the petition is made. The recent news last night was just the opening round!
Watch and learn how to be a millionaire!
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Microsoft Makes More From Android Than Windows
http://www.mobiledia.com/news/91785.html
Microsoft has been making more money off HTC phones than its Windows line of smartphones thanks to a lawsuit settlement, showing how lucrative patent suits can be for companies.
The Redmond, Wash.-based company settled with HTC in April 2010 over intellectual property infringement. In the settlement, HTC agreed to pay Microsoft $5 for every Android device it shipped. Since then, HTC has sold 30 million handsets for a Microsoft payout of $150 million -- a number five times higher than it makes on its own Windows Phone line.
Since the launch of its Windows Phone line in November, Microsoft has only been able to sell two million units, accounting for just $30 million due to licensing fees that gives Microsoft $15 for each phone shipped.
Microsoft's take from HTC's phones illustrates one of the lesser-known, but lucrative, benefits of patent lawsuit settlements, which have become the latest battleground for phone makers and tech companies.
While it may appear that companies sue one another over intellectual property to protect their software and designs, they can also garner a piece of each other's pies, with settlements granting one another a portion of device sales as a licensing fee for the patent in question.
Smartphones integrate technologies from various industries, often which overlap with each other. When several companies come together each holding a portfolio of patents, lawsuits often times arise when one believes their patents are being infringed upon by the other.
Microsoft isn't the only company jumping on board the patent lawsuit cash-cow, as rivals see the potential profits at stake by suing the competition as well.
In April, Nokia filed a patent infringement suit against Apple over several patents the company claimed it owned, including multi-tasking operating systems, data synchronization and even call quality. Nokia, lacking a true competitor to the iPhone, could piggyback on the iPhone's success if granted a patent suit settlement, which may be helpful for the company as it attempts to claw its way back into the U.S. smartphone market.
Not to be left out, Apple is also suing other companies like Samsung over the technology and design of its Galaxy line. Apple, which is also involved in a web of litigation with Nokia and HTC, among others, over the patents used in smartphones, has brought 16 claims against Samsung, including unjust enrichment, trademark infringement and 10 patent claims.
Details of settlements between companies are rarely disclosed, but the Microsoft settlement with HTC shows that these cases can be a big payday. As long as there is money to be had and power from owning the rights to advanced technology, lawsuits will continue to be a staple of the courtroom.
According to Citi analyst Walter Pritchard, who released the report of Microsoft's relationship with HTC, more lawsuits target Android devices because "Google appears to have very little IP to defend itself with."
Microsoft has concrete benefits of patent royalties and shows no signs of stopping: the company has issued more lawsuits to several other Android phone makers over IP infringement, including one against Nook maker Barnes & Noble, which uses Android as its OS. Using HTC as a guide, Microsoft could charge between $7.50 and $12.50 per handset sold if settled.
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Microsoft may join Google in the Nortel purchase.
Will AT&T hook up with Apple?
Big time games will benefit the Nortel common shareholders!
Interesting reading
http://gametimeip.com/2010/12/13/are-we-on-the-verge-of-a-patent-arms-race/
Are We On The Verge Of A Patent Arms Race?
Posted by Patrick · December 13, 2010
On the heels of stories like Facebook’s purchase of HP and Applied Materials patents and Groupon’s purchase of an early group discounting patent, comes a report today that Apple, Google and RIM are among the bidders for Nortel’s IP portfolio. If the rumors are true, this may be unprecedented territory for Google, and possibly a hedge against is earlier position that Oracle’s patents are unpatentable, abstract ideas. The move could give the winning bidder control of patents relevant to wireless 3G and 4G technologies, which would provide some much needed leverage, particularly for Google which has so far failed to use any of its own patents to counter Oracle’s attack. Without any leverage of its own, a defendant accused of patent infringement has very little negotiating power. Either a carrot or a stick could go a long way toward establishing a bargaining position. The nice thing about patents is that they can sometimes be used both ways.
The auction could also be good news for anyone else with 3G and 4G technology for sale. Unless, by some miracle, all three parties come away with patents, there will be a winner looking to leverage its investment, and a couple of losers looking for a plan B …
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http://tacticalip.com/2011/06/12/a-quick-crash-course-att-t-mobile-and-google-there-will-be-a-test/
As far as technology is concerned, however, expect the speed of network evolution to increase. Networks have already been racing to get better and converge to a single superior technology, but the merger would likely kick everyone into high gear. Very few things could possibly slow this down. Except maybe this.
It’s been a few years, but AT&T and Nortel have worked together before. AT&T worked with Nortel to bring its 3G service to customers using the W-CDMA technology mentioned in the article. I HIGHLY suspect that some patents related to that technology are in the Nortel portfolio currently on auction. I suppose my suspicion is strengthened by the fact that Google, the current bidding opener for the Nortel patents, has been oddly silent about the impending merger. Both AT&T and T-Mobile use the same W-CDMA technology (which made the merger possible in the first place), and, should Google (or anyone else) leverage those patents, AT&T could be out some serious money that could go to network evolution.
Bottom line: the future is completely up in the air, but I REALLY want some shiny new technology.
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http://gametimeip.com/2011/01/17/more-google-acquisitions-driven-by-patents-and-other-unanswered-questions/
More Google Acquisitions “Driven” By Patents — And Other Unanswered Questions
Posted by Patrick · January 17, 2011
So late last year, I had a pretty good laugh over this “expert” opinion that Google’s interest in Groupon was due to the latter’s patent portfolio. (See: Is Groupon’s Patent Really Worth More Than The Entire Nortel Portfolio?). Actually, my friend Jackie Hutter also had a laugh over this same article in her post Patent “Expert” Opinion on Reasons for Google Tender Offer for Groupon Reveals Fundamental Problems with IP Professionals.
Now I’m starting to think that there’s a PR machine out there that simply wants to make us all think that Google is interested in buying patents. Perhaps inspired by Google’s embarrassingly “weak” response to Oracle‘s aggressive infringement suit, someone is planting the idea that Google’s current purchasing decisions are patent driven, this time in reference to its purchase of eBook Technologies, Inc., with no real evidence whatsoever. (Don’t laugh at me for reading USA Today … the Atlanta Journal-Constitution was sold out). Recall that the “expert” in the Groupon article never mentioned a specific patent, while I was able to easily identify and link to the only known issued patent in Groupon’s portfolio (incidentally filed years before it first went into business).
The USA Today dispenses with calls to “experts” and simply tells us that “This acquisition is most likely about patents, personnel and technology, rather than hardware or software.” Ok, and why is that? Oh, because the eBook website used to say:
John is co-inventor and patent holder of a system to provide secure electronic book delivery. He is also a co-inventor of a patent-pending system to provide offline catalog shopping on an electronic book.
Garth is inventor or co-inventor of seven issued eBook patents; technologies include: cryptography and secure content distribution, eBook UI, resource/database dynamic conversion for cross-platform applications, and optimal paginated document presentation.
Of course, someone did do a little research, discovering that “some of these technologies were developed at their previous jobs at Gemstar-TV Guide and SoftBook Press.” But that didn’t stop the ultimate conclusion that
“eBook Technologies has likely accumulated several different patents and proprietary technologies over the years. Google could only get them by acquiring the company.”
The thing is, had someone decided to dig a little deeper by, say, actually trying to find the patents, that someone might have discovered a far more interesting story. Looking for “eBook Technologies” in USPTO assignment records does, in fact, reveal a couple of patent applications (which, needless to say, are not patents). But more interesting than the fact that eBook is assigned ownership of these applications is noticing who else is an owner. Just take a look at the assignment history for one of the applications, and you’ll see that there are actually two owners. The inventors signed over the patents to both eBook Technologies and Firstpaper, LLC. Scroll to the bottom, and you’ll see that Firstpaper changed its name to Skiff, LLC. Presumably, that’s the Skiff, LLC that makes the largest and thinnest ebook reader. That would be the Skiff, LLC that was itself acquired by Rupert Murdoch’s News Corporation last year.
Does it strike anyone (other than me) as odd that Google would be so interested in acquiring a patent application that it would share with News Corp.? Also, given News Corp’s reported interest specifically in the IP rights, would they really have made a deal that didn’t include sole possession of the Skiff patents? And in that case, what, exactly, did Google acquire? Are Google and News Corp working together?
Unfortunately, USPTO assignment records are only as accurate as the patent owners want them to be, so unless News Corp or Google decides to record new assignments asserting ownership over the patents, most of us are just left to ask questions.
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Google buys the Nortel patents and pushes an ereader that delivers your news, books and whatever over its Andriod system.
If $6 Billion was good for Groupon what about taking over the distribution of news and related publishing?
READ MORE*****************
http://ireaderreview.com/2011/01/13/is-google-building-an-ereader-readying-ad-supported-books/
The Kindle might be getting a brand new eReader rival.
It seems that Google has bought out a company called eBook Technologies Incorporated. The acquisition is notable for a few reasons -
1.ETI has two LCD based eReaders and 1 eInk based eReader – the latter looked surprisingly like the BeBook. This might mean that Google is looking at building an eReader. It makes sense to build on one of ETI’s eReaders, instead of starting from scratch.
2.ETI has 8 very important eReader patents including ones covering advertising in books and secure ebook delivery. These were mostly granted on December 16th, 2010. This might mean that Google already has an eReader ready, and just wants to protect itself from patent lawsuits. Given that Amazon and B&N already have several patents, and that companies like Discovery Communications also have eReader related patents, it makes sense to buy a portfolio of patents that would keep a Google eReader safe from patent lawsuits.
3.ETI has technology for an eBook platform which includes an ebook publishing and distribution system. This is something Google would definitely need if it were to get into eReaders. In fact, it would need this even if it sticks with just ebooks.
Here are some links of interest -
1.Cache site for the ETI-Proto – ETI’s 6? eInk eReader.
2.Cache site for ETI Product Overview – ETI’s eReaders, Online Bookshelf, eBookstore, and Tools.
3.TechCrunch’s Coverage – Some intelligent comments on a rather amateurish post.
However, the real question is – Why did Google buy eBook Technologies Incorporated?
Is Google Building an eReader? Will it build on top of ETI-Proto?
The first possibility is that Google decided that instead of spending $1 billion on B&N’s Nook division, or Sony’s Sony Reader division, it makes more sense to spend $50 million on a smaller company like ETI or Cool-er.
Then it could take the devices ETI has, pick one or more, and build a Google eReader using the technology. As a nice bonus, it gets a bunch of eReader patents that ensure it can release the new Google Reader without any problems.
Will Google go with an eInk eReader or a LCD eReader?
Here are the three ETI eReaders Google could build on (please note that most of this information is from 2007, and is thus pretty outdated) -
1.ETI-Proto. It has a 6? eInk screen, a single button, and seems to be a BeBook clone.
2.ETI-1. It has a back-lit, 8.2 inch, 16 bit color LCD touchscreen with VGA resolution. It has brightness and contrast controls. It also has an internal 56K modem, an ethernet port, a memory card slot, a Motorola processor, and a stylus.
3.ETI-2. It has a back-lit, 5.5 inch, 4-bit grayscale LCD touch screen with half-VGA resolution. It has page turn buttons on the front left side. It has an internal 33.6K modem, a USB slot, a stylus, and a Cirrus Logic processor.
It seems ETI had an entire range of eReaders – eInk, grayscale LCD, color LCD. The eReaders also seem pretty decent given these specifications are from 2007.
Given that it’s Google, it’s likely that it will use this technology to build a reading tablet, and not an eReader.
How likely is it that Google is building an eReader or a Reading Tablet?
Very likely.
Google built a phone secretly. Then it built a netbook/laptop secretly. There’s little doubt it’ll build an eReader sooner or later. It has search traffic, it has books, it has public domain books, it has an ebook store, it has cloud infrastructure – the only thing missing is an eReader.
In fact, it’s quite possible that Google has an eReader almost ready - that it’s buying ETI simply for eReader patents.
Is Google buying patents to protect an almost-ready Google eReader? To sell advertising supported books ?
Let’s take a look at the impressive eReader patents ETI has. Thanks to Dave at TechCrunch for the clues.
Patent for advertising in Books
[Advertising in Books] System and Method for providing Sub-Publication Content in an Electronic Device – A patent about showing ‘master content’ and then showing sub-content that might be a book review, news, sports news, classifieds, book-related, and so forth. It includes advertisements as sub-content. This might be the BIG patent. Amazon has a patent for in-book advertising. Now Google just got a patent for in-book advertising.
You can also read the entire eReader patent.
Patent for Secure eBook delivery and offline eBook shopping
From the Management page at ETI’s website we get this -
John is co-inventor and patent holder of a system to provide secure electronic book delivery. He is also a co-inventor of a patent-pending system to provide offline catalog shopping on an electronic book.
Those are two very important patents. Can’t find the patent numbers. Please do leave a comment if you can find them.
Flexible Electronic Device
Update: This is actually Skiff.
Patent Application Number – 20100315399. This is a patent that covers a flexible electronic device and a method of manufacture. This patent specifically quotes the Kindle and Plastic Logic’s Que -
In many cases, electronic devices have replaced traditional, non-electronic devices.
For example, for many, electronic reading devices have replaced traditional paper books. An example of such a device is Amazon’s Kindle wireless reading device, which allows a user to download an electronic book, and then read that book using the device. Another example of a similar product is the Plastic Logic Reader. These devices, while providing functionality for the user, still resemble small, inflexible computers.
It’s interesting that Skiff has patents for a flexible eReader. Thought that News Corp had closed it down. This might be a pretty valuable patent. Skiff has at least two more eReader related patents -
1.[This is Skiff] Electronic Display Controller – System for controlling an electronic display, such as an electrophoretic display.
2.[This is Skiff] System and Method for Providing Spatial and Temporal Content in an Electronic Device. Includes Advertising which makes it a hugely important patent.
It’d be worth investigating what other patents Skiff has. Perhaps in a later post.
Additional Patents
ETI also holds a few additional patents -
1.Electronic Paper Display Whitespace Utilization – A patent about how ePaper content formatting is presented. It literally talks about figuring out how best to display content on an eReader, and which content to display, given a certain amount of available space left. It’s a bit ridiculous there’s a patent for how words are shown on a page.
2.System and Method for delivering Publication Content to Reader Devices using Mixed Mode Transmission – A patent that talks about multi-casting content to multiple eReaders. It also talks about using mixed mode transmission.
It’s interesting that nearly all of ETI’s patents mention devices using electronic paper displays. Why would it focus so much on eInk when it had just 1 eInk based eReader?
Is Google buying ETI’s Platform and Distribution Technology?
After looking at the patents ETI has, this possibility seems really unlikely. However, let’s see if there’s something worth acquiring.
ETI has a platform consisting of four parts -
1.eReaders. Which we’ve looked at above.
2.Online Bookshelf. This is ETI’s equivalent of WhisperNet/the Cloud. They talk about ‘the ability to purchase and access ebooks anywhere, and at any time’ – which sounds identical to the Kindle’s ‘Buy a Book Once. Read it Everywhere’ sales pitch.
3.eBookstore. The equivalent of Kindle Store. ETI mentions relationships with over 24 major publishers. It also talks about accessing the store through an eReader, a browser, an offline catalog, or through an alternate web retailer.
4.Content Conversion and Publication Tools. Apparently, ETI’s founders were founding members of the International Digital Publishing Forum, which created ePub. ETI has a tool, eBook Publisher, which converts books into ePub format. It can process text, ePub, OEBPS, Html, Word, and Powerpoint files. ETI also has a tool, Auto Publisher, which performs pagination, compression, and encryption of ebooks.
It’s clear that ETI’s platform, and its distribution technology and tools, might be pretty valuable too. ETI’s President is on the IPDF board and helps set direction for ePub – which definitely helps since ‘openness’ and ePub are going to be used as weapons in the eReader Wars.
Is Google buying itself an eReader Development Team?
ETI’s management team -
1.John Rivlin, CEO, was the VP of Software Systems at Softbook Press. SoftBook Press released one of the first eReaders in 1998 – the SoftBook. This company was acquired by GemStar, and he was then responsible for design, development, and operations of the Gemstar eBook server platform.
2.Garth Conboy, President, was the VP of Software Engineering at Softbook Press. At Gemstar he was the GM for the Gemstar eBook Group which was a combination of SoftBook Press and the company behind the RocketBook.
More details at the cached page for ETI’s Management Team.
By acquiring ETI Inc. Google instantly gets some of the people with the most experience in eReaders and eBooks.
Closing Thoughts
Google acquired – eReader technology, some extremely valuable patents, a distribution system and platform, two people who know an awful lot about eReaders. It’s a pretty good acquisition.
There are two very likely consequences – a Google eReader will arrive in 2011, Google will try advertising-supported books in 2011 or early 2012.
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Apple is aware of the threat and will pay big to stop Google's expansion. Apple knows the consumers will rush for this new toy Google is making. The future is in this auction! 15 Billion? Maybe a lot more!
Google today just got the digitized British Library of England
http://theeword.co.uk/seo-manchester/the_british_library_teams_up_with_google_books.html
Amazon will be gone if Google Books succeeds!
Amazon is worth how much?
Is Groupon’s Patent Really Worth More Than The Entire Nortel Portfolio?
Posted by Patrick · December 16, 2010 ·
Filed Under Apple, Google, Groupon, National Law Journal, Nortel, Patent, PatentPortfolio, Patrick Arnold
Since initially writing this post about Groupon’s use of the patent marketplace to acquire this patent to counter a lawsuit from MobGob, I’ve learned that Groupon just can’t stay out of the news. Whether it’s for getting involved in another patent infringement lawsuit or turning down a $6 Billion offer from Google. While I do still think the idea Groupon had (to acquire the fire needed to “fight fire with fire”) was a good one (and likely to be repeated in the near future), I get the feeling that others are reading far too much into Groupon’s patent acquisition by suggesting that the patent is motivating Google’s purchase. While patents are a component of a many deals, lawyers should really do a better job of setting realistic expectations when it comes to assigning value.
In a recent interview with the National Law Journal, attorney Patrick Arnold was asked his opinion about Google’s $6 Billon offer:
NLJ: Google’s $6 billion offer is awfully high for a company founded two years ago. What do you think?
PA: My first thought was somebody probably looked at the technology and the patents closely, and felt like Groupon was in a pretty good position and had a strong patent and/or patent portfolio. I would also imagine…that Groupon has at least one patent and maybe others that Google has done some internal analysis of and said, ‘That’s a good patent and would be good for stopping others from getting into the business.’
via Expert: Groupon’s Appeal to Google Was Likely Patent-Related.
So according to NLJ’s “expert,” Groupon’s patent portfolio is likely the primary driver in a $6 Billion offer … To put things in perspective, Google’s offer is 6 times higher than the number pegged for the highly sought-after, 4000 patent Nortel portfolio (rumored to be worth about $1 Billion dollars).
It’s true that Groupon does have at least one patent. They may have others that we don’t know about, for a variety of reasons, but let’s start with what we know, which is one issued patent claiming a specific method for marketing limited time offers that includes “calculating a price … dependent upon … an aggregate amount of … product that … buyers have collectively indicated a willingness to purchase.” Is it possible that Google, a company that apparently can’t muster an offensive counterattack to Oracle, would be interested in this patent to the tune of $6 Billion?
Or could the data-hungry Google empire be after something else that Groupon might have been collecting over the past few years …
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Think about the value here. Groupon or communication,video, networking etc.
Google Bid For Nortel Handed RIM Patent Offer At Least $930m
April 19, 2011 by vivian
According to foreign media reports, with RIM company is considering more than Google’s nine billion dollars to offer price bidding Nortel networks company’s patent.
According to two people familiar with the blackberry maker, RIM company is considering the 6,000 to Nortel networks, and many patent after quote Google have also put forward many patent 6,000 9 billion offer.
According to people familiar with the matter say, many technology firms, including many mobile phone maker, has tried to bid to prevent Google companies competing to this 6,000 many patents. It is reported, RIM company will also join the team. Nortel networks patent allows buyers to acquire the blackberry, apple using Google’s Android and the iPhone operating system equipment control of the technology right and authorized.
A patent lawyer David Mixon says handheld device manufacturers may be inspired to offer the bidding nortel patent to protect their resource pool. Because these patent involve video, LTE wireless technology is its long-term evolution.
Google earlier this month, the patent publicly on Nortel offer the auctions, if appear other bidders, so will take place on June 20th auctions. According to auction rules, the second bidders at least $9.29 bidder, but after this offer will increase the number at 5 million.
Nortel networks in January 2009 is declared bankruptcy. Later, they sell business has gained 30 billion fund, and patents copyright is they could sell last major property.
One of RIM company joint CEO Mike Lazaridis in diss earlier this month on whether the company will refuse to say these patent offer the auctions, but he had previously called LTE is a national wealth patent.
RIM company spokesman Tenille Kennedy said to offer the patent rumors not nortel post comments, and Google spokesman Aaron Zamost also declined to comment.
http://xtwe.com/?p=2373
Since this is an American and Canadian bankruptcy the need for a protocal was determined. Hence the press release today noting the company's request.
The sale of this patent portfolio is unpresidented and nobody really knows how much they will go for. Google's lowball bid is just a chess game. Others will say ok we can go 3 Billion and win them all while Google will go 5 billion knowing this is only a bait and switch move.
6,000 patents in CDMA and LTE technologies.
The breath of Nortel's patents are known to thier patent lawyers and you can bet they are in demand.
Microsoft thinks it is exempt from Nortel's bankruptcy but read this:
Nortel, Google, and the Ongoing Rights of Licensees in Bankruptcy [Updated]
We have previously discussed Google's $900 million Stalking Horse bid to purchase Nortel's portfolio of more than 6,000 patents. Nortel was a Canadian-based telecommunications equipment manufacturer. The company is now bankrupt and the company's assets have largely been sold to pay its debts. The patent portfolio represents one of the last remaining company assets.
Over the years, Nortel has licensed its technology and its patent rights to various other companies, including Research-in-Motion, Microsoft, Plantronics, Foundry Networks, and others.
An interesting aspect of the proposed transfer would involve "vesting all of Nortel's right, title and interest in and to such patent assets absolutely in the purchaser free and clear of and from all encumbrances." Ongoing licenses would also be rejected and terminated as permissible by law.
Bankruptcy has a tendency to disturb well-settled contracts. In particular, a bankruptcy trustee has the right to either assume or reject executory agreements. Executory agreements are typically seen as any ongoing contract where both parties have ongoing material obligations. When the bankruptcy trustee rejects an executor agreement, the wronged-party has a right to collect for breach of contract, but only as an unsecured creditor. (Unsecured creditors typically receive very little money from the liquidating party.)
Both US and Canadian law provide an important exception for executory licenses of patents and copyrights. See Section 365(n) of the Bankruptcy Code. A patent licensee can continue to enforce its rights under the license if it continues to pay any royalty due. Courts do typically allow the trustee to prevent assignment of non-exclusive licenses. In this case, Nortel's trustee has "affirmatively and reasonably refused to give consent … to any renewal, extension, assignment, amendment, waiver or modification of any license [or] any Cross-License Agreement…. [No licensee] shall have the right or power to transfer any of its obligations, right, title or interest in the licenses." The trustee's proposal also indicates that licensees who do not come forward to explicitly claim their right as licensees will lose their rights: The licenses will be terminated at "closing and shall forever be barred, released and extinguished."
Moving forward, the scope of rights granted to licensees and the potential licensing revenue stream will likely have a major impact on whether competitors bid against Google. Microsoft has publicly claimed its belief that its rights as a licensee will continue to bind subsequent purchasers of the Nortel patents.
Old but they said SEVERAL BILLIONS!
http://www.commercialappeal.com/news/2011/jun/10/nortels-patent-portfolio-could-bring-billions/
Nortel's patent portfolio could bring billions
By Ameet Sachdev, Chicago Tribune
Posted June 10, 2011 at midnight.
CHICAGO -- One of the more intriguing auctions scheduled later this month won't involve fine art or vintage sports cars or other expensive trinkets, but it is expected to attract some deep pockets.
The bankrupt telecommunications company Nortel Networks is selling a cache of patents that cover a wide range of technologies used in wireless phones and infrastructure, Internet search and social networking.
"We think it's likely that the Nortel portfolio will sell for several billion dollars," said Raymond Zenkich, a partner at Red Chalk Group, a Chicago-based patent broker. "I don't think there's ever been a patent portfolio sold for this amount."
Google Inc., whose Android software is used in smartphones made by Motorola Mobility Holdings Inc., set the opening bid for the private auction at $900 million.
The winner will take home a formidable patent portfolio that could be used to develop new products or services. The patents also could be used as a legal weapon in the highly litigious wireless industry. The U.S. Justice Department is reportedly concerned that a tech giant like Google or Apple Inc. could leverage the Nortel portfolio to stifle competition or extract huge licensing fees from rivals.
The Nortel auction highlights the growing importance of the marketplace for patents where values are set outside the courtroom by buyers and sellers. Several companies have sprung up just to buy patents. They generate revenue by licensing their technology or suing those who infringe on their patents.
Patents are much harder to value than traditional assets such as financial securities or real estate. After all, a patent is really just an exclusive right to develop an invention for a certain period of time.
It's no surprise then that a whole industry of brokers, lawyers and engineers has recently formed to help companies and inventors figure out what patents are worth.
Nortel filed for Chapter 11 in early 2009 in Delaware, Canada and Europe. A few months later, the company said it would sell its businesses, including its patent portfolio.
A key bucket of Nortel's patents involves a next-generation mobile data technology now being adopted by carriers, known as LTE.
In April, Nortel chose Google's offer as the starting point of the auction, also known as the stalking horse bid.
The auction will start June 20 behind the closed doors of a New York law firm.
Analysts back in April said that if a bidding war for the Nortel intellectual property heated up, the price could hit $1.5 billion.
http://www.bizjournals.com/dallas/news/2011/06/20/intel-apple-ericsson-join-nortel.html
Next it will be 2.0 billion and then 3 billion.
The trend is that the estimated price is rising as more interest and awareness of the value of the patents.
An auction war will prevail.
The auction process will require the parties to put out a big number just in case another decides to edge them.
Industry analyst have already said 15 billion is reasonable value to the right owner.
http://www.mobiledia.com/news/94464.html
By Margaret Rock | Mon Jun 20, 2011 11:37
Apple, Intel and Ericsson will be vying with Google and others to buy patents from bankrupt telecom-maker Nortel later this month, increasing the number of bidders and raising the stakes for its valuable patent portfolio.
Apple's entry isn't too surprising, and for Intel, the move indicates another step in its strategic shift to mobile smartphone chips.
Just last week, Google proposed a $900 million starting bid for all of Nortel's patents, after receiving antitrust clearance from the U.S. Department of Justice. Google could use Nortel's patents to protect from lawsuits related to its Android software.
Citing a "significant level of interest" in their patent portfolio, Nortel delayed the auction for the patents by a week, setting June 27 as the date, and allowing other bidders to talk with the DoJ in order to join the heavy-hitters at the table.
Nortel commands some 6,000 patents, covering a wide range of wireless technologies including Wi-Fi, social networking and Internet search technology. The DoJ, concerned the winning bidder could potentially misuse the patents to cripple rivals, scrutinized the bidders.
The DoJ also accepted RPX, a San Francisco-based patent risk solutions provider, as a qualified bidder. Fellow Canadian company Research in Motion may also enter the fray is building, as its chief executive Mike Lazaridis called the suite of patents a "national treasure trove."
RIM and other interested parties may not have the financial guns to last long in this auction, though, where bids could quickly exceed $1 billion.
None of the companies made public comment on the private auction.
After posting a loss of $5.8 billion in January of 2009, Nortel filed for bankruptcy. Since then, the company has raised about $3 billion to pay creditors by selling businesses, and the patents are the last of the major assets to be sold.
Nortel To Sell CDMA Business and LTE Assets; Company Advancing in Its Discussions With External Parties To Sell Other Businesses
June 19, 2009
•Enters into a Stalking Horse Sale Agreement for CDMA Business and LTE Access Assets with Nokia Siemens Networks for US$650 million
•Sale of Businesses is Best Path for Nortel to Maximize Value While Preserving Innovation, Customer Relationships and Jobs to Greatest Extent Possible
•Will Apply to Toronto Stock Exchange to Delist Shares and Expects Creditor Protection Proceedings Will Ultimately Result in Cancellation of Shares
TORONTO - Nortel* Networks Corporation [TSX: NT | OTC: NRTLQ] today announced that it, its principal operating subsidiary Nortel Networks Limited (NNL) and certain of NNL's subsidiaries, including Nortel Networks Inc., have entered into a "stalking horse" asset sale agreement with Nokia Siemens Networks B. V. (NSN) for the sale of substantially all of its CDMA business and LTE Access assets for US$650 million.
The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN. This represents a significant portion of the employees associated with the assets being sold.
In addition to announcing this sale agreement, Nortel announced that it is advancing in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales. In addition, as discussed in more detail below, Nortel will apply to delist its common shares and the NNL preferred shares from trading on the Toronto Stock Exchange (TSX) and expects that the creditor protection proceedings will ultimately result in the cancellation of these equity interests. Trading in such shares on the TSX is expected to be suspended pending the TSX's decision on the delisting application.
Commenting on the announcements, Nortel President and Chief Executive Officer, Mike Zafirovski said:
"Maximizing the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible. This will ensure Nortel's strong assets - technologies, customer relationships, and employees - continue to play an important role in driving the future of communications. The value of Nortel's wireless business is recognized throughout the industry. The agreement we are announcing today is solid proof of that value and represents the best path forward for our other businesses."
Zafirovski continued: "We also believe this will help provide clarity for our customers and employees. Customers have demonstrated consistent support for our products and services, and we want to ensure they continue to benefit from Nortel's technology and know-how. In addition, Nortel's employees are doing a tremendous job under challenging conditions, stabilizing our business and delivering outstanding service to our customers. It is important to provide our employees with a clear sense of direction around their future and potential opportunities with the new companies."
The wireless business is the second largest supplier of CDMA infrastructure in the world. It does business with three of the five top CDMA operators globally, including Verizon Wireless, which operates the largest wireless voice and data network in the United States.
Commenting on the wireless business announcement, Richard Lowe, President, Carrier Networks added:
"Seeking a strong and stable buyer is the best path forward for our CDMA business and LTE Access assets. If successfully completed, this transaction would give many of our CDMA customers a clear roadmap for the future evolution of their networks and the opportunity to extend their relationship with a long-term partner. Further, we expect that a significant portion of the employees associated with the assets being sold would be able to continue their innovative work."
Lowe continued, "Nortel has a long track record of wireless innovation which has helped us secure a strong and loyal customer base. Throughout this sale process, our customers will continue to receive the highest quality support for their current networks. If successfully concluded, the buyer would gain access to leading edge technology, know-how, and embedded resources to support this significant customer base."
Share Value; TSX Delisting
Based upon today's announcements and Nortel's current assessment of its businesses in the context of its creditor protection proceedings, Nortel does not expect that the Company's common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will ultimately result in the cancellation of these equity interests. As a result, the Company will apply to delist its common shares and the NNL preferred shares from trading on the TSX. Trading in such shares on the TSX is expected to be suspended (commencing before the opening of trading on Monday, June 22, 2009) with the consent of the Monitor under the Canadian creditor protection proceedings, pending the TSX's decision on the delisting application.
Details of Sale Process for CDMA Business and LTE Access Intellectual Property Rights
Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice.
In addition to the bidding process and U.S. and Canadian court approvals, consummation of the CDMA business and LTE Access transaction is subject to the satisfaction of customary and other conditions, including governmental approvals such as in Canada and the United States. The stalking horse asset sale agreement is also subject to purchase price adjustments under certain circumstances.
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If the sale is above the one billion submitted already then the common stockholder will have standing and the creditors will have to deal with a court appointed Equity Committee!
Nortel US, Canada challenge European units to detail claims
By Peg Brickley, Dow Jones Daily Bankruptcy Review
Tuesday 05 April 2011
Canadian vendor's European businesses claim they are entitled to share in funds raised through bankruptcy.
With a final big sale on the way in its global liquidation, Nortel Networks Corp.'s U.S. and Canadian units have flung down the gauntlet before the company's European units, challenging them to prove they are entitled to share in billions of dollars raised in bankruptcy.
Dozens of claims from Nortel units in the U.K., Ireland, France, Spain, Romania, Austria and elsewhere are piled up on the bankruptcy-court docket in the U.S. Almost all the claims say "unknown" in the space reserved for the amount.
Friday, Nortel U.S. moved to have the European claims erased forever, unless the grounds are spelled out in detail. Whatever the numbers, the figures for European Nortel claims are expected to be among the largest in the bankruptcy of the former telecommunications giant, court papers say.
Monday, Nortel issued the long-awaited announcement that it would put its patent portfolio on the auction block. Google Inc. will kick the bidding off at $900 million, a price that could be driven higher at the auction.
Once the patents are handed over to the ultimate buyer, Nortel will have no continuing business to form the core of a reorganized company. Some Nortel employees are still working under service agreements as new buyers take over complex technology operations.
But for Nortel as a company, all that will be left once the patents are gone is to split up the cash among creditors --$3.2 billion, not counting the impending patent sale.
That process of dividing the spoils began early in Nortel's round-the-world insolvency proceeding, but efforts to reach a deal bogged down amid strife over how much cash is to be allocated to each part of the company -- and its associated creditors. Friday's filing indicates the process remains contentious.
As of the end of February, Nortel U.S. had more than $1 billion in cash -- sale proceeds are being held separately -- and estimated liabilities of $5.8 billion.
The intercompany claims -- claims by European units against the parent company where the cash is stockpiled -- are expected to be among the most significant in the Chapter 11 proceeding, court papers say. Nortel U.S. said Friday it is With a final big sale on the way in its global liquidation, Nortel Networks Corp.'s U.S. and Canadian units have flung down the gauntlet before the company's European units, challenging them to prove they are entitled to share in billions of dollars raised in bankruptcy.
Dozens of claims from Nortel units .....
Nortel to take its $4bn intercompany cash fight public in June
By Peg Brickley, Dow Jones Daily Bankruptcy Review
Wednesday 27 April 2011
Joint hearing in U.S., Canadian courts will see judges decide how to divide Nortel's funds between creditors.
Nortel Networks Corp. is taking its multi-billion-dollar global intercompany cash fight public in June, the lead bankruptcy lawyer for the liquidating telecommunications company said Tuesday.
Behind-the-scenes efforts have failed to resolve disputes over which part of Nortel gets how much of the nearly $4 billion being raised in the breakup of ............
With the new interest in the patents Nortel may change its mind and keep the stock active as the NOLs are very valuable!
Previously the patents did not have a high value but recently the interest amongst various parties is proving that the common stock holders will have equity remaining after the sale.
Something to think about!
Yes, original balance was $6B, but
3.5B has been paid already with all the asset sales.
Please provide your sources.
Balance outstanding is 2.5 B
Thus the excitement for the stockholders on this 6,000 patents sale.
Total Shares Outstanding 497,931,093
2.5 billion after 2.5 paid to creditors means $5.00 per share!!
Never again in your lifetime will you have this opportunity!
Carpe Nortel!!!
Day traders leaving early! This explains the late day drop.
They must be happy. However, smart money is aware of the value and this is peanut when you can have cashews!
$4 Billion at the minimum!
-2.5 to creditors
1.5 billion to stockholders!
.5 billion shares
$3.00 per share!!!
.075 to $1 is a lot of potential money and IF
the bidding goes higher!
Maybe $3 to $6 easily!
Lifetime chance.
2.5 billion to creditors thus 3 billion means $1 per share!
0.0687 0.0157 29.62% 26,905,286
1 Million shares swings the price down 10%!
Talking about the tail wagging the dog!
MM playing.
Buy with conviction
3 Billion patent sales means the price is worth $1 per share!
Got it! Now go get em or be sorry you played games.
Per Annual Report -ITEM 2 PROPERTIES AND FACILITIES
We sublet, on a month to month basis, approximately 6,000 square feet of office space at 18 Airpark Place, Guelph, Ontario, Canada for $5,000 per month. This space serves as the principal place of business.
On May 5, 2011, the Company entered into a purchase and sale agreement to purchase the land and building located at 345 Woodlawn Rd. W Guelph Ontario NlH IC3 for l.l5 million dollars Canadian. The owner of the building will carry a first mortgage on the property for S900,00O dollars Canadian at the rate of 9% interest only for the term of 2 years. This property will serve as tbe Company's primary facility for its various business, subject to the terms of the aforementioned first mortgage.
Unfortunately the search is for members only. I have not purchased a membership and therefore was unable to search.
I guess I should have spent the hundred dollars to become a member. Funds are tight and I have gotten by without joining and using Google. I was unable to find my answer after many hours and days of searching so I posted my question to solicit a response.
I have used the boards with great results and I appreciate the community involvement I just am not so sure about the owners of the website and if they actually are neutral regarding the feedback they get from the community. I have heard some opinions a while back about deception and manipulation from the owners of this site and have always been leary over trusting the posts and the stock movements from popular penny stocks.
I usually use Yahoo and rarely come here but this is the Mecca for WAMU so I am here learning and I appreciate the help.
Again,
Thank you.
Fellow investors,
I thank you for your attention to my concerns regarding the prospectus question. I did read the legalsleeze and was concerned about this issue.
I asked politely and waited for some guidance. I searched google and bankruptcy and found my head spinning! SERIOUSLY this is very complicated reading and difficult to take in over the past two weeks. I notice the uptick in trading and price movement and started researching and made the investment on Breakout Friday and I believe I posted on this day.
I still had many questions and had invested mostly all my money into this stock being trusting but wanting to verify.
My purpose for todays posts was to solicit an answer and thankfully DAIMYO answered. I am very proactive in my research and very supportive of my investments and have a lot of followers that I pass on investment advice for FREE!
You can verify my past behavior and realize I am not a short and find it impossible to short a stock. I think only the MM actually short as they control the flow and a few select players. JMHO
With a community of investors corruption can be stopped in the marketplace and the job of the SEC can be accomplished only with participation from the investors.
Thank you very much for your help.
Does the board fear my question regarding the PROSPECTUS?
I have asked for confirmation regarding the dismissal of the prospectus. The terms of fundamental change dictate if the stock is below $17 the value is not worth the investment.
NOBODY has shown me any evidence that the prospectus (contract) is not binding in the conversion features pending.
Is it possible that this is being dodged and avoided because they HOPE it is fair and equitable and disregard the contract language which governs the exchange?
Why is the entire board so DAFT regarding the legal language of the prospectus and lure newbies into this investment with generalized answers?
Does anybody DARE provide a discussion with support and not the feedback Lawrence provide which was mere puff in the air answer.
Any real thinkers with logical answers able to defend or explain this conflict with the governing document of this investment?
Do you have a link or further discussion regarding the P specialist?
The prospectus has a fundamental change conversion rate.
Does this apply in the sceme of things?
I am curious about the price I would get as the Ps have the conversion value below current if the Prospectus controls the outcome.
Anybody know something I am not seeing?
Can anyone provide the links for the Ps not being converted into common under the original propectus?
Or give me an understanding as to why this is not applicable.
What Does Priority Mean?
Essentially, the seniority of creditors and equity holders determines who will own the reorganized company. Secured creditors and unsecured creditors have the highest priority and are most likely to own stock or bonds in the reorganized company. Whether holders of preferred stock are granted an ownership interest in the reorganized company will depend on whether the company's value exceeds the amount owed to holders of secured and unsecured debt. Common stock holders have the lowest priority and are most likely to lose out in a Chapter 11 bankruptcy.
Read more: What Happens With Preferred Stocks Under Chapter 11 Bankruptcy? | eHow.com http://www.ehow.com/about_6541627_happens-under-chapter-11-bankruptcy_.html#ixzz1NaFzWEqL
Total of all preferred 4.3Billion!
P have 3B value
Series R, Trading as WAMPQ
These can only be converted into common, and cannot be redeemed for cash. (OLD FACTS-NOT CONVERTIBLE ANY MORE)
Old symbol: WM.PRR, Issued 12-17-2007.
Outstanding: 3,000,000. Liquidation Value: $1,000
Interest Paid: 7.75%
On December 17, 2007, WMI issued 3,000,000 preferred convertible shares, at a price of $1,000, to raise approx $2.9B.
These were paying 7.75% interest.
Summary: http://www.secinfo.com/dr643.uCc.htm
Prospectus:http://www.sec.gov/Archives/edgar/data/933136/000095013407025552/v36537aexv4w1.htm
K
2. Series K, Trading as WAMKQ .5B
Old symbol: WM.PRK, Issued 9-11-06
Outstanding: 20,000,000. Liquidation Value $25.
Interest Paid: Greater of 3 month LIBOR plus .70% or 4%.
Depository shares representing 1/40,000th of floating rate series K non-cumulative preferred stock, no par value.
Series K Perpetual Non-Cumulative Floating Rate Preferred Stock was originally issued at $1,000,000/share. 500 were issued.
SO, 500 x 40,000 = Number Outstanding: 20,000,000.
Prospectus: http://www.sec.gov/Archives/edgar/data/933136/000095012406005225/v23402b5e424b5.htm
H Total Value .8B
Washington Mutual Capital Trust 2001, 5.375% PIERS Units due 7/1/2041
Ticker Symbol: WAHUQ CUSIP: 939322848 Exchange: OTCBB
Security Type: Trust Preferred Security
Link to Prospectus
There are 23,000,000 shares outstanding!
This stock is to be paid $34.319/share, as per the Order signed on 1/28/2010(THMFW):
www.kccllc.net/documents/0812229/0812229100128000000000011.pdf
Best value based on FV are the Ps then the Ks and last the Hs. DIMEQ is worthless.
FYI The stocks will both reach FV but Ps have better value at the present time. Also the naked shorts may push the value over the limit as they cover.
Always best to compare the K and P for the best buy as they are essentially the same in the settlement process. Ps and Ks are brothers with the Ps being the unappreciated big brother and the Ks being the spoiled little brother!
WAMPQ US: Now on the REG SHO Threshold Security List
2011-05-27 14:03:34.892 GMT
WASHINGTON MUTUAL INC NON CU ("WAMPQ-0")
- Now on the REG SHO Threshold Security List
This issuer is subject to mandatory close-out requirements outlined in the
SEC's Regulation SHO. There was an aggregate fail to deliver position for five
consecutive settlement days at a registered clearing agency totaling 10,000
shares or more and equal to at least 0.5% of the issuer's total shares
outstanding.
More info at http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm
This list can be found at
ftp://ftp.nasdaqtrader.com/SymbolDirectory/regsho/nasdaqth20110526.txt
Ps have a conversion feature that was applicable under specific conditions. Those conditions and conversion features become ineffective once a default has occurred. They are not binding and will never be relied upon as they do not apply under BK.
Therefore, your understanding of the Ps & Ks is based on limited knowledge thus causing you to overpay for Ks as oppose to buying the Ps which are trading at a discount to the Ks.
Ks should recieve FV with a conversion into common stock in the new company when the residual estate of the common is determined.
Same goes for the Ps.
All preferred should receive full Face Value as an offset to the Estate net assets and this value will be fairly represented in the new company on a percentage of the total estate.
IE
BK ASSETS= 14 B
K & P -7B (50%)
Common residual = 7B (50%)
New company will issue stock so k & p get 50% on new company and common get 50%. The stock value will be 7B/1.7B=4.11 per share
All fair and even for all.
series K non-cumulative preferred stock, no par value
Why do you fantasize about what will never happen?
Please explain why the non-cumulative nature in the document is meaningless.
No prior dividends will be paid according to the stock's original nature, when did this stock become cummulative?
Usually in BK all divs are suspended and not paid.
Why are you pumping this without any support?
STOP unless you will defend your bs.
ALSO why buy Ks when they are overpriced compared to the Ps?
Ks FV 25/1.3=19.23 return potential
Ps FV 1000/36=27.777 return potential
Over 8 times more with the Ps. Ps should be at $50 since Ks are $1.30
Valuation thoughts on residual for common
Preferred multiple gain 1000/36=28 times plus a 10% kicker in conversion
Present WAMUQ price is .118 * 28multiplier per preferred =$3.304 potential based on preferred multiplier.
1.7 Billion shares * 3.304 =5.616B residual estate!
Preferred get 5B plus estimated common 5.616 equals 10.616 new assets for company to work the deal.
I guess they have at least this or expect to have this eventually when the other assets are recovered.
The EC can not change the ownership since they are insiders! I am sure they wish they could!!!
You know but have no understanding of the value of the residual.
All should be happy but the actual residual upon exit may not have all the assets so the preferred will get a better shake at the expense of the unknown residual assets but in the totality of the deal it is neccessary to do it quickly.
My last message for today as 15 is maxed.
I do not wish to offend anybody and actually do not know the law and I guess you guys do know more then me but if Preferred are slighted then I would expect a Supreme Court ruling on this newfangled interpretation of English.
No derogatory intentions just facitiuos play. All my money is on the preferred as I like a safe play. I suspect the common residual will eventually be known and should come close to a few dollars for the common with the preferred being allowed to share in future recovery per the litigation trust.
The 10% kicker should have standing and may allow the waiver of appeal if the preferred shares agree to such a conversion.
GLTA
100% Preferred who just got very excited on the big board.
EXCUSE ME!!!!!
For the amount of money here I would think somebody knows a lawyer and would spend some time checking out the priority of claim doctrine!
Anybody AWAKE on this board to realize case history compells compliance with established case rulings.
Full face value for preferred shares before any common get a single penny. Maybe all of this is moot as the funds in the residual will more then justify the allocation but the principal of the law tell everybody with a brain that the preferred are 100% value with the common amount of the residual anticipated as being worthwhile to allow such a deal.
So all the conservative investors should bank money in the preserve as they will rise much higher as somebody will research this matter and report that preferred are 100% and commun is a guess right now.
Once the preferred rise to 50% value then common will be looked upon as a better multiple gainer but regardless of the trading practices the knowledge of full face value for preferred will be exhautively researched by the money investors and positions will be taken there first before in the common.
Go get your legal advice from case history regarding bankruptcy and stop using your imagination! No new legal history, just a novel application of known laws to the situation.
Legal knowledge will give you confidence to invest so go get it and take the easy money before others get it.
I would think a 10% offset is fair to adjust for the lost of preferential treatment and not forcing the liquidation of the assets at fire sale prices thus preserving value for a residual estate for common.
I am not an expert but such an allowance would or should be considered as the preferred are taking a lower ranking in the new company and now have not other choice but to sell and take a loss after getting the shares. All said and done forcing such a deal should compensate the party for the trouble they are taking on being common or a member of hoi polloi.
LOL
Additionally, the voting common allowed the company to get into this mess and the preferred were helpless and blameless. Many reasons to allow a prefernce to the preferred in this conversion.
Also collection in the litigation trust awards will offset the preferred as they are normally limited to their Face Value so now they should actually get like 110% of value in the new company.