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Im with you! LOL! Im grabbing some extra blocks tomorrow.....
NRTLQ shares are valuable!!!
People forget about the remaining debt!! Is about the NOL value around $1.6 Billion that the equity holders( NRTLQ shareholders) can now claim. NOW!! that the creditors will be paid in full they can't claim and request the NOL( tax credits assets) from the shell(NRTLQ) in order to satisfy the debt!! BECAUSE DEBT WILL BE SATISFY WITH CASH NOW AVAILABLE. SO now shareholders can claim the value of the NOL and sell it to some corporation( by a reverse merger or 49% interest in the new NORTEL)..... THAT IS VALUE AT $1.6 BILLION.......
http://www.bradreese.com/nortel-docket-19.pdf
Equity Committee coming......
your welcome, is true everything just change in 2011. Now the creditors will be paid in full and byebye creditors!, but the shareholders can claim the NOL because the NOL belongs to the equity holders! So yes the link is old but is the truth about the NOL value and is valid!. Get ready because this stock is not going to be cancel in december. Learn more about Reverse Merger to preserve the NOL and you will see........
More on the subject about NOL and the shell(NRTLQ):
http://stjohns.abiworld.org/node/118
http://www.allbusiness.com/finance/3591808-1.html
http://www.shellstockreview.com/forum/topic.html?id=428
With this auction Nortel will paid creditors in full and there will be $2+ Billion extra in Nortel for the other claims but now shareholders can come forward and request the shell and the NOL( value around $1.6 Billion in tax credits) with no objection because creditors will be paid......
yes, postyle you got it right! congrats!! And I agree with you this is great news for the sector and other stock related to IP lawsuits, etc. The good part here is that now HFs looking to grab the NORTEL shell(NRTLQ) are free to do it, because this creditors will get paid in full and now an Equity Committee can come forward and claim the NOL( value around $1.6 Billion) without any problem!! This an unique opportunity!!!
They have to put that information because of the other claims and liabilities but this is great news because creditors will be paid in full and there is an extra $2 + billion available to distribute but the NOL( the shell) now belongs to the shareholders!!!! NOL value is more than $1.6 Billion!! Creditors don't get the shell( NRTLQ)!!! Excellent news!!!! The shell( NRTLQ) is now available!!!!
Nice!! I was right!! over $3 Billion and miss by 0.5( I said $5 Billion)LOL!!!! excellent!!!!!
good point! some of those patents can still deliver a good partnership with continuos royalties and the opportunity for Nortel to continue as a going concern but slim, small and profitable and with the advantage of NOL(tax credits around $1.6 billion), and the money that is tax free could be use to pay all the other liabilities during the following years( Except the "bonds and some creditors" which can be paid with this auction)......
No Kitt, actually I feel sorry for you lack of good DD skills, in BK process you can follow many path that at the end could deliver the same results, and old shareholders grab a piece in the new company.... like I said" do the proper DD and you will find that the few stocks that actually recover from the BK process(like nrtlq could do) each of them follow different path depending on their corporate structure, debt, BOD, nature of their business, BK scenario/situation.... hope this help you to understand the reality of the BK process and their shareholders like in Nortel.....
Exactly, but visteon follow a different route but at the end the result was the same old shareholders got a piece in the new company...
Kitt, Im going to try and be a gentlemen with you. Please do the proper DD but to help you a little check Visteon BK process.... Common shareholders got a piece in the new company... And like that BK process I can mention at least 3 more but do the proper DD and you will find out.... I agree with you in that the majority of the BK stocks get cancel but a few don't and Nortel could be one of those few....
""and other restructuring efforts and to continue to work toward the development of a plan of arrangement under CCAA. """
Maybe a small new Nortel and profitable?? If they pay the creditors, shareholders retain the NRTLQ( the shell) with the beautiful NOL( tax credits over $1.6 Billion) that can be use into a new profitable small Nortel......Tax free....
Remember some of the "Pension Plans from Nortel" are holding shares! if NRTLQ do not get cancel but merge( with the benefit of NOL) into the new Nortel a lot of people will recover some of the money.....
Kitt, That is common legal language in all BK situation, Is written to avoid "liabilities" but you know it dont you??. Until a judge authorize the cancellation, common are in the game and that is why they still trade. I can say I will be a multi-millionaire but until it actually happen Im just a wealthy american. Do you get my analogy with Nortel??
postyle, Good point of view and observation. Until this morning I thought about the $3 Billion price but after a little more DD, $5 Billion make more sense to me. Please check my next thread about Nortel NOL and what do you think?? thank you
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64756899
Agree! But not only that, If Nortel get over $5 Billion, Creditors will get paid and then what?? What Nortel is going to do with the extra Billions?? What their going to do with their $ 1.6 Billion in NOL?? If they cancel commons they lose those $1.6 Billion in NOL..... But those $ 1.6 Billion in tax credits could be a "treasure" for another company that doesn't want to pay taxes....
Check item number 9.....
http://www.bradreese.com/nortel-docket-19.pdf
Third auction day almost over..... anybody here still think this auction sale will be for less than $5 Billion??
No news yet, IMO this auction will take by surprise many people!! I still believe this auction will be over $5 Billion......
rudyboy, the difference between green or not is 0.005( half cent) MMs are just trying to accumulate before News come out.... IMO(OPINION, IM ON TOPIC) HFs already got the tip off that the sale will be over $3 Billion so they are buying..... IMO( AGAIN) if we dont get news today I believe this sale will surpass the $5 Billion mark........
I believe this post can give us an idea of the current debt and above how many Billions commons could get something.....So far Nortel is holding $1 Billion in Cash, plus 3.2 Billion from previous Assets Sale and $5.6 Billion in Debt (Bondholders, creditors, claims etc) that will be pay first!!!!!.....
...........................................................
The total claims is lower that $13 Billions( and could be much lower at court) and the actual debt with creditors is lower than $ 6.3 Billions. So far Nortel have 3.2 Billions( from previous assets sold) and almost $1 Billion in Cash. Creditors( bondholders, etc) is right now around $6B( $5.5B to be more specific)......
Liabilities subject to compromise $5.6 Billion....
Definition:
Liabilities Subject to Compromise refers to the Debtors' liabilities, in the U.S.A., incurred prior to the commencement of the Chapter 11 Cases. This amount represents the debtors' estimate of known or potential pre-petition claims to be resolved in connection with the Chapter 11 cases. Such claims remain subject to future adjustments. Virtually all of the Corporation's pre-petition debt is in default due to the filing and is included in liabilities subject to compromise. Payment terms for liabilities subject to compromise will be established as part of a plan of reorganization under the Chapter 11 cases.
Latest MOR from COURT:( monthly operating report)
http://www.kccllc.net/documents/0910138/0910138110610000000000002.pdf
2009 BK announcement:
As of Sept. 30, Nortel’s debt amounted to $6.3 billion, including adjustments for operating leases, pension deficits and other items. The company has $1 billion in bonds that come due in 2011. Total liabilities amounted to almost $12 billion, while cash stood at $2.3 billion.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6ghKQiL1apk
EVERYBODY CAN SAY "" AHHH NORTEL OWE ME BLABLABLA) BUT YOU HAVE TO PROVE IT IN COURT!!! but the only thing clear!!!! is that with $5.6 B you pay the creditors....
With that being said: IMO with bid over $5 Billion commons could be in the money big time!! but right now is all speculation....
Update:Nortel's and Google's responses have been added to this story...
"The auction is ongoing," explained a Nortel spokesperson, in an email to TheStreet, but said that the company will not comment on the auction until it has been completed. "A press release will be issued at that time," added the spokesperson.
Apple, Nokia, Intel, Ericsson and Microsoft have not yet responded to TheStreet's request for comment on this story. Google declined to comment.
http://www.thestreet.com/_yahoo/story/11168913/1/nortels-auction-potential-winners-losers.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA#disqus_thread
Like I previously said, and is IMO( AGAIN MY OPINION) so I dont need a link for my personal comments about Nortel and the potential sale price( SO IM ON TOPIC)!!!! They are outbidding each other and when you have $65B in cash you can keep outbidding until the others quit.....IMO( again) if tomorrow we don't see a winner, then this auction will surpass the $6 Billion mark...... happy trading
The analyst interpretation is wrong! July 11 is for the court to Approve the Sale but people and companies will have to submit their objections to the sale( IF ANY) before July 6. In other words the winning bidder have to be announce before July 6( probably 2-3 days before, dont remember the exact timeframe) so that objections can be file before July 6 deadline..... But this article brings more arguments that suggest that this sale will be in the BILLIONS( one hint: google desire!!!! and their $65 BILLION IN CASH!!!!!...... happy trading
Latest News:Nortel's Auction: Potential Winners & Losers
By James Rogers 06/28/11 - 05:52 PM EDT
WATERLOO, Ont. (TheStreet) -- Bidding for a slew of patents held by bankrupt Canadian telecom specialist Nortel began on Monday. Speculation is now mounting as to who amongst the likes Google(GOOG_), Apple(AAPL_) and Nokia(NOK_) could be the big winners and losers.
Google has the $900 million opening bid for the Nortel patents, which encompass wireless video, Wi-Fi, Internet search and social networking.
Last week, the Federal Trade Commission also gave Apple the green light to bid on Nortel's patents, although Nokia, Intel(INTC_) and Ericsson(ERIC_) are also said to be in the patent hunt. Additionally, rumors have emerged that Microsoft(MSFT_) is a bidder, underscoring the software giant's desire to boost its presence in the mobile market.
Both Google and Apple, however, are thought to be frontrunners, thanks to their respective cash balances of $65 billion and $37 billion, according to Stephen Patel, an analyst at Gleacher & Co.
"We would view a win by either as negative for Nokia as it would reduce Nokia's ability to assert patents against Android vendors or Apple once its current Apple agreement expires," explained Patel, in a note. "Google has suggested that its intent for purchasing the patents is largely defensive, so we do not view it as a threat to other vendors."
Google announced its bid for the Nortel patents in April, explaining that the technology will help the search giant fend off any future patent litigation.
Newly-reinstalled Google CEO Larry Page is also expected to sharpen the company's focus around mobile devices and search, a strategy that would be boosted by Nortel's patents.
A Microsoft win, however, would be better news for Nokia, according to Gleacher's Patel. "A Microsoft acquisition of the patents would both protect Nokia and raise the possibility of both companies jointly asserting patents against vendors in competing ecosystems," he noted.
Nortel has not yet responded to TheStreet's request for an update on the progress of its auction, although Patel says that a final sale hearing is scheduled for July 11. It could be another one to two weeks before the final winning bid is known, he added.
Google, Apple, Nokia, Intel, Ericsson and Microsoft have not yet responded to TheStreet's request for comment on this story.
With the smartphone market rapidly escalating into something of a technology arms race, the major players are constantly jostling for position around key patents. Nokia, for example, recently said it settled patent litigation with Apple, noting that the settlement would be positive for its second-quarter earnings.
--Written by James Rogers in New York.
http://www.thestreet.com/story/11168913/1/nortels-auction-potential-winners-losers.html?cm_ven=GOOGLEN
second day almost over! and silence from the media!(Public/mass media).... IMO Next round could be over $5 Billion!! If tomorrow we don't get news, Im going to start thinking that maybe $6-8 Billion could be a reality..... Keep fighting I want to see $ 10 Billion!!!!!! by next monday........
CASH Available from the Giants:
GOOGLE...... over 30 B
Apple..... over 25 B
MSFT......over 45 B
Intel....... over 10 B
Ericsson......???? Who cares!!!!
Microsoft Possible Silent Bidder for Nortel Patents
By James Lee Phillips | June 28, 2011 2:58 PM EDT
The auction for Nortel's portfolio of some 6,000 tech patents began in earnest on Monday, but also for the most part behind the closed doors of the Cleary Gottlieb Steen & Hamilton law office in Manhattan. As yet, most of what is known about the process is via speculation.
One major rumor that is finding its way around the Internet is the inclusion of Microsoft as a bidder. This may seem only natural; after all, the other major players are top tech companies Google and Apple, Microsoft's perennial rivals. However, Microsoft's position is that its own "worldwide, perpetual, royalty-free license to all of Nortel's patents" makes the company seem less than eager (why buy the cow, et cetera).
Still, analysts point out that Microsoft may feel that there are other very good reasons to acquire the portfolio. Patent ownership is, frankly, becoming a major revenue source for many in the tech industry; Apple and any number of others have proven that the license or litigation approach is 'not just for patent trolls anymore'.
Also, Microsoft would still certainly find many useful patents among the remainder not specified by its 2006 licensing deal with Nortel. There are a wealth of patents covering LTE 4G, 3G, Wi-Fi, hardwired networking, software, Internet, and more; between freeing the company from licensing complications and opening new avenues for its own development, any tech company would only benefit from the deal.
And it must be pointed out that Microsoft's involvement (other than the aforementioned objection regarding its existing deal) is still largely speculative, resulting from 'reports' that the company leads one of two entities created specifically to bid on the patent portfolio.
One of these "purpose-built syndicates" is known as "Rockstar Bidco LP", according to Maureen O'Gara of SOAWorld, who also stresses that it is not known whether this is Microsoft's consortuim or not. What is known is that this syndicate appeared on the United Sates antitrust clearance list last week -- the same regulatory list that gave the okay to Intel for the Nortel bidding.
http://www.ibtimes.com/articles/170870/20110628/microsoft-possible-silent-bidder-for-nortel-patents.htm
MMs are doing with they do best by taking out all the "wannabe traders" and people just gambling and not doing the proper DD.... If you are a veteran trader, well, you already know the game! This is an unique opportunity, do the proper DD and play the game wisely...... News could be out anytime, HFs already got the tip off.......
yes! I saw it, And their comments about $11.1B( my DD is around 12B) is valid and can be confirm by doing extra DD. And those are the ones you fight in court!. But those $24 Billions are just some people and companies trying to make excuses for their bad business with Nortel and from Nortel+ other #$#@$ frivolous claims that really are not going to be able to be sustain in court! and will be dismiss pretty easy.... To me is pretty simple Creditors first( $5.6 Billion) after that everything else could be fight in court....
postyle, that is not true! The total claims is lower that $13 Billions( and could be much lower at court) and the actual debt with creditors is lower than $ 6.3 Billions. So far Nortel have 3.2 Billions( from previous assets sold) and almost $1 Billion in Cash. Creditors( bondholders, etc) is right now around $6B( $5.5B to be more specific)......
Liabilities subject to compromise $5.6 Billion....
Definition:
Liabilities Subject to Compromise refers to the Debtors' liabilities, in the U.S.A., incurred prior to the commencement of the Chapter 11 Cases. This amount represents the debtors' estimate of known or potential pre-petition claims to be resolved in connection with the Chapter 11 cases. Such claims remain subject to future adjustments. Virtually all of the Corporation's pre-petition debt is in default due to the filing and is included in liabilities subject to compromise. Payment terms for liabilities subject to compromise will be established as part of a plan of reorganization under the Chapter 11 cases.
Latest MOR from COURT:( monthly operating report)
http://www.kccllc.net/documents/0910138/0910138110610000000000002.pdf
2009 BK announcement:
As of Sept. 30, Nortel’s debt amounted to $6.3 billion, including adjustments for operating leases, pension deficits and other items. The company has $1 billion in bonds that come due in 2011. Total liabilities amounted to almost $12 billion, while cash stood at $2.3 billion.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6ghKQiL1apk
EVERYBODY CAN SAY "" AHHH NORTEL OWE ME BLABLABLA) BUT YOU HAVE TO PROVE IT IN COURT!!! but the only thing clear!!!! is that with $5.6 B you pay the creditors....
With that being said: IMO with bid over $5 Billion commons could be in the money big time!! but right now is all speculation....
toronto416, no news yet is excellent indication but a lot of the "wannabe" traders dont understand NRTLQ- bk scenario and are in panic mode right now!. The longer it take to know the winner of the auction the better for NRTLQ. Why?? because it looks like google, apple, intel and MSFT are outbidding each other and the amount just keep going up!! IMO HFs already have the info about yesterday results and they are not shorting but just taking out all the traders right before any news get leak...... Remember some PATENT EXPERTS said nortel patents could be worth up to $15 Billion!! The longer it takes to know the winner the more I believe the $5 Billion price tag could happen and maybe more..... KEEP FIGHTING GOOLE, APPLE, INTEL, MSFT....... happy trading
Relax!! This small pullback is nothing more than the BS!!! and Negative reaction from:
http://finance.yahoo.com/news/MicroStockProfitcom-pz-2338665874.html?x=0&.v=1
The HFs and MMs controlling NRTLQ hate this type of articles and PRs when they are trying to maintain control in their stocks. So what they do ???? They manipulate the stock up and down to prevent traders from coming in, simple as that...... IMO we will finish up by EOD.... happy trading
yes! not a "monopoly" but a very good and maybe unfair competitive advantage!!!that is what Google was trying to do, but Apple, Intel and MSFT saw it too and jump in the game!! So now is just a matter of Who have the deepest pockets??? get ready for a price tag over $3 Billion!! maybe $5 Billion (IMO)
simple, is more easy to destroy than to build and that is what Nortel last Management did!. Nortel couldn't recover from their dot-com fiasco( plus their frauds, etc,etc). Just do a little more DD around those issues and your will get the clues.....
Exactly! and the future of 4G and LTE technology. People thinking that Nortel patents are going to be sold for less than $3 Billion! don't have a clue about this technology. Between Google, Apple, Intel, Ericsson and MSFT there is more than $100B in cash ready to bid for nortel patents..... $5 Billion! is a pocket change for this Giants......
People need to understand that IP lawsuits and litigation costs will keep going up for decades. Today an "IP settlement could cost between 500M-1B, in the next decade "IP settlements will be in the range of BIllions simple because we are going to use this technology 100x times more than today...... So what is $5 Billions today when it can save you a nightmare in the future + your shareholders will be very happy to know that you use the cash to protect the business against future litigations....
This is one reason why the commons """maybe"""" get something at the end of this saga. People please!!! dont start with the arguments about BK situation,SEC Filings, Company PRs, bla,bla, bla.... just listen!
We have to remember that Nortel was a very big international corporation with decades of history and business developments, Thousands of their employees got retirement plans( pension, 401k, etc,etc) that put some and in other cases most of their money( retirement contributions) in Nortel(today NRTLQ) stock. With that being said, With todays BK situation, most of that money is gone! Once the auction is finalize and if and only if Nortel raise enough money to satisfy most of the claims! Because of the retirement plans situation( Nortel stocks- Pension Lawsuits-Claims) is perfectly logic that maybe a cash settlement/distribution to commons could happen..... This is just info and thoughts to any person looking at why the commons "maybe" get something at the end...... but right now is BK and pure speculation, happy trading.....
Is Microsoft secretly bidding for Nortel's patents? (And if so, why?)
There’s a report circulating that Microsoft may be among the bidders for Nortel’s war chest of 6,000 telecommunications patents.
This seems somewhat surprising to me, given last I heard from Microsoft, company officials said they felt no need to bid on the patents which are up for auction. A spokesperson told me in April 2011 that Microsoft already has” worldwide, perpetual, royalty-free license to all of Nortel’s patents that covers all Microsoft products and services, resulting from the patent cross-license signed with Nortel in 2006.”
So what’s up with the June 27 SOA World Magazine report that bidders for Nortel’s patents now include Google, Apple, Intel and “two purpose-built syndicates,” one of which is led by Microsoft?
I’ve asked Microsoft whether it is one of the entities bidding on the patents and was told by a spokesperson that the company had no information to share at this time.
It’s worth noting that if the Softies are one of the cloaked bidders, it wouldn’t be the first time Microsoft has kept its identity secret when bidding for patents. It did the same when it made a bid as part of a consortium for Novell’s 800 or so patents. Microsoft’s role in the Novell patent-consortium bid came to light via regulatory filings.
Patent expert Florian Mueller said he believed that “there’s no doubt they (Microsoft) feel they have nothing to fear from those (Nortel) patents. That said, having ownership of them (together with other members of a consortium) would have additional benefits.”
“Microsoft might also believe that up to a certain price those patents are simply a good financial investment for someone who understands the patent monetization business,” Mueller added.
Nortel filed for bankruptcy protection in January 2009. The Nortel patents up for auction were said to cover wireless handsets and infrastructure, as well as optical and data networking, Internet, Internet advertising, voice and personal computers In 2007, Microsoft and Nortel announced a wide-ranging strategic partnership. Via that much-trumpeted alliance, the pair committed to take on Cisco by integrating and cross-selling their communications wares and by jointly licensing each other’s IP.
In June, when it looked like Google might be the default victor for Nortel’s patents with an alleged bid of $900 million, Microsoft officials told a judge the deal could give the proposed buyer, Google “an unfair competitive advantage.” Microsoft asked for guarantees to protect its patent agreement if Google purchased the patents in question.
http://www.zdnet.com/blog/microsoft/is-microsoft-secretly-bidding-for-nortels-patents-and-if-so-why/9835
Cloud Computing: Five Entities Vie for Nortel Patents
The unprecedented auction is being held at the law office of Cleary Gottlieb Steen & Hamilton in Manhattan
By: Maureen O'Gara
Jun. 27, 2011 02:55 PM
Google's $900 million stalking horse bid established a floor for the auction and the best of the sealed bids that had to be in by the afternoon of June 13 will have been selected as Monday's opening bid. It would have to have been more than $929 million and each sequent bid would have to be at least $5 million better.
The unprecedented auction is being held at the law office of Cleary Gottlieb Steen & Hamilton in Manhattan.
The 6,000-odd patents and patent applications cover widely used or essential widgetry like LTE, the 4G mobile data technology, data and optical networking, wireless video, Wi-Fi, voice, Internet search, social networking and semiconductors.
If Google doesn't win it'll still get a $25 million breakup fee.
A hearing is scheduled for July 11 to approve the final sale. Objections are supposed to be filed by July 6.
http://www.sys-con.com/node/1888816
AUCTION START:Auction begins in U.S. for Nortel's final assests
Updated: Mon Jun. 27 2011 12:00:48 PM
The Canadian Press
TORONTO — The auction of Nortel's last technology assets -- patents for Internet search, mobile video and wireless networks that can be used in consumer technology -- got under way Monday, although most details are being kept confidential.
Internet search engine giant Google originally put in a starting bid at US$900 million in early April but Nortel Networks Corp. delayed the original auction date of June 20 by a week due to a "significant level of interest" from bidders.
iPhone maker Apple, Swedish telecom company Ericsson and chipmaker Intel have been suggested as likely bidders for Nortel's 6,000 patent and patent applications, which could fetch as much as $1.5 billion.
The winning bidder will be able to use the patents to defend itself against potential litigation from other companies that say they had a particular technology first and allege it's being used without a licence.
Chinese telecom ZTE Corp. as well as U.S.-based RPX Corp., which could represent a consortium of companies possibly including Canada's Research In Motion (TSX:RIM), could also be bidders
Google, also a leading force in the smartphone business with its Android operating system, has said it views the acquisition of the Nortel patents as a defence against patent litigation.
Please!!!! People listen to the experts!!! Not some "wannabe" traders and bashers that don't have a clue about Nortel Auction and the potential Billions in this game.... Just listen to this "PATENT EXPERT"....
http://www.washingtonpost.com/business/poltorak-says-nortel-auction-may-spark-patent-wars/2011/06/27/AGWzLWnH_video.html
Latest News:Nortel sale is biggest in booming patent market
June 27, 2011, 11:36 a.m. EDT
By Peg Brickley
of DOW JONES DAILY BANKRUPTCY REVIEW
Technology heavyweights will throw down Monday for the formidable patent portfolio of Nortel Networks Corp. NRTLQ +15.39% , vying to stock up their arsenals for raging legal battles over smartphones, Web advertising and whatever comes next in the multitrillion-dollar technology wars.
Stuffed with 6,000 patents and patent applications, the intellectual property treasure chest of the liquidating telecommunications company could ward off hundreds of millions of dollars worth of patent infringement lawsuits and open the doors to billions of dollars worth of sales of devices and technology. Creditors, needless to say, are looking for much more than the $900 million opening offer that Google Inc. (GOOG) threw on the table.
Remarkable for its size and notoriety, the Nortel patent auction is part of a steady and growing stream of patent sales in a market that has been flooded with activity in recent years, one that has billions of dollars of capital ready to do deals.
"Since the market took off in the last eight years or so, intellectual property went from being an unused asset in the corner to a prime financial asset that can be traded," said Feisal Mosleh, vice president for acquisitions at Intellectual Ventures.
Founded by former Microsoft Corp. MSFT +3.60% chief strategist Nathan Myhrvold, Intellectual Ventures is believed to be the biggest buyer of patents in a field that includes RPX Corp. RPXC +0.48% , Acacia Research Corp. ACTG +2.07% and Allied Security Trust, a private company owned by members including Hewlett-Packard Co. HPQ +0.26% , Ericsson and Intel Corp. INTC +0.09% .
At a recent conference, a company representative said Intellectual Ventures had $5 billion in deals and funding commitments in what Mosleh called the "invention capital market."
It's a market that barely existed a decade ago, but one that is growing at the rate of about 25% each year, Mosleh estimates. "There is no shortage of capital for the right invention. It's one of the most differentiating aspects of business today."
Known for its aggressive pursuit of technology patents, Intellectual Ventures is "the number one acquisition group in the world," working through a network of contacts, he said. "We will go after any good invention right," Mosleh said. "We move quickly and we have a powerful valuation methodology."
ICAP Plc (IAPLY, IAP.LN), an interdealer broker in the wholesale markets in interest rates, credit, commodities, foreign exchange, emerging markets, equities and equity derivatives, launched a brokerage just for patents. It's booming, handling hundreds of deals each year and fielding offers to handle thousands, said Dean Becker, chief executive of ICAP Patent Brokerage.
"There is a very active and thriving market among companies that desire to raise money in a non-dilutive fashion for an off-balance-sheet asset," Becker said.
Sometimes sellers are distressed, sometimes they're just changing strategic direction. If lack of money or lack of interest means a company has no use for a patent, a sale means cash. If the seller needs patent rights to continue producing a product, it can get a license back as part of the deal, he said.
"We've gotten companies tens of millions of dollars in the last few months alone," Becker said.
The recovery of the U.S. economy over the last 24 months, coupled with the wariness of traditional lenders about any asset other than cash, has pushed technology companies to start treating their patent portfolios as financial assets, as well as strategic assets, he said.
"People were and are looking for alternative sources of financing. Your bank will not lend money on your IP, so a lot of companies have come to the realization that it's an opportune time to sell," Becker said.
"Our transaction costs are nominal compared to getting a bank loan that doesn't exist," he said.
Word of Nortel's patent auction started the phones ringing at Lazard Ltd., the company's investment bank. Businesses all over are looking for advice on how to get money out of their intellectual property, said Lazard managing director David Descoteaux.
Big operating companies with lots of intellectual property and "patent-lite" newcomers to the technology industry are looking to buy and sell, along with the nonoperating players, he said.
"Companies can now think about getting value for their IP in ways that they hadn't thought about before," Descoteaux said.
Before the market for patents opened up, the only way to get money out of a patent was to make a product and sell it, license it to someone else who would make the product and sell it, or sue someone who was making and selling an infringing product.
When infringement lawsuit targets are suppliers, customers or venture partners, that gets awkward, Descoteaux said. Then it may be time to sell.
Another Nortel adviser, Global IP Law Group, is building its practice around "people who want to explore patent monetization with litigation as an option, but not necessarily the first option," said David Berten, a former litigator and one of the firm's founders.
For many reasons, companies can find themselves with patents they're not using, "like an empty plant," Berten said. Convincing another company to take a license and pay royalties is a long and expensive proposition. "Litigating takes even longer and is more expensive," he said.
A sale is a faster path, but not always an easy one for an asset that has been considered a daunting value proposition, according to Berten.
"Anyone can get comps for real estate. Everyone can calculate what accounts receivable are worth," Berten said. "The asset class that may have the most value is the patents, but that's the toughest to understand."
http://www.marketwatch.com/story/nortel-sale-is-biggest-in-booming-patent-market-2011-06-27
Will a New Patent Troll Emerge from Nortel IP Auction?
Considering the litigious nature of the mobile-phone world, it’s no surprise that the aforementioned companies would want to buy the portfolio. No doubt the bidding will reach well beyond $1 billion, and there is no guarantee that all the patents will be sold to one bidder. That could lead to some fascinating behind-the-scenes alliances and other maneuvering. One additional factor to watch: by virtue of a 2006 licensing deal with Nortel, Microsoft has stated that it has, and will continue to have after the auction, “a world-wide, perpetual, royalty-free license to all of Nortel’s patents that covers all Microsoft products and services.” Whatever happens at today’s auction, a bankruptcy court in Delaware and a superior court in Nortel’s home province of Ontario will hold hearings on July 11 to review and possibly approve the sale.
Google’s participation is most interesting for a number of reasons, most prominently because it lacks what the other bidders already possess: a strong patent portfolio. Google’s general counsel wrote in April that defense against would-be patent litigators and assistance for its “open source community” partners motivated its interest. Also, now that Google is antitrust regulators’ reigning flavor of the month, and especially with an expensive, possibly protracted fight against the U.S. government looming, the company may want to use the patents to move more into the mobile tech space, or sit on the patents and pursue licenses through threats of litigation.
The latter approach would certainly belie Google’s stated reasons for seeking Nortel’s patents. Any eventual auction winner could follow such a patent troll path, but the possibility of the world’s dominant online search and advertising company joining the ranks of NTP (the patent holding company which extracted $612 million from RIM) may launch the Nortel auction bid towards the stratosphere. No matter what happens, as the above-referenced FAQ noted, “it’s a turning point in the development of the modern mobile computing industry.”
http://blogs.forbes.com/docket/2011/06/27/will-a-new-patent-troll-emerge-from-nortel-ip-auction/
Tech giants fight tooth and nail for Nortel patents
A huge scrap is taking place in the schoolyard, as bankrupt Nortel's final patents go under the hammer.
The range of patents, which have been developed for broadband and networking, have caught the eyes of Google, Apple, ZTE and Intel who will be fighting tooth and nail to get a piece.
According to Florian Mueller, patent expert who has been following the auction, the most prized patents will be the ones related to LTE.
He told TechEye: "The high level of interest was totally foreseeable and it is more than likely that the bidding prices will beat expectations.
"We may have to wait to see the outcome of these patent auctions until later on, but in terms of importance this is the largest IT Portfolio of patents since I can remember.
"The sheer quantity is unprecedented. It's important, and companies want these because the patents relate to LTE, which will in the future appear on numerous devices."
Judging by their previous records none of them will be giving up without a fight, as they all try to boost their patent portfolios and protect their intellectual property in the future.
Back in April, when Nortel announced that it was facing bankruptcy, Google lurked around its half-finished grave and became a stalking horse. In fact, it wanted the remainder of the patents for $900 million.
RIM said "neigh!" to that particular stalking horse and decided to battle it out, attempting to top its $900 million bid.
At the time it said it was considering whether to bid alone for the assets or to find a partner to save money and and stop Google from getting its hands on the gold, which Mike Lazaridis, the co-chief of the company, once described as a "national treasure." Like hockey, maple syrup and RIM.
Others also took the opportunity to get one over. Of course, it's the industry's best interest which is at heart.
Microsoft earlier this month pleaded to the US Department of Justice in a bid to stop the search engine from buying up all the patents. Its reasoning was that Google could not recognise Microsoft's existing licensing agreements.
The giant was joined by HP and Nokia who both had their brows well and truly furrowed. To them, the terms of the auction will terminate current licensing agreements they have with Nortel.
It means that Google, if it succeeds in winning the auction, could wave its legal papers in the faces of all and sundry, suing them for infringement or upping licence prices.
"Makers will more than likely need to have the patents, which are being sold off, to place into their [LTE] device, and as a result be able to licence them off a company," said Mr Mueller.
"This is something the likes of Microsoft and Nokia have been campaigning for, going to the courts and asking that it put into the selling terms that the company who buys the patents will be prepared to licence them out."
Read more: http://www.techeye.net/business/tech-giants-fight-tooth-and-nail-for-nortel-patents#ixzz1QUM9uxXG