Nortel, the former telecom giant, has begun the auction for its 6,000 strong patent portfolio related to mobile, web and wireless technologies.
The auction originally began in April when Google made a $900 million offer to purchase the patents. Nortel had chosen to postpone the auction owing to the rise in interest from bidders.
Now, with the auction underway, companies including Google, Apple, Ericsson and Intel are involved in a bidding war to secure Nortel’s valuable patents, The Economic Times reports.
Whoever wins the patents and patent applications portfolio will be able to defend their interests in case of a lawsuit and will also be able to strengthen their existing patent portfolio.
Experts believe that the auction could generate as much as $1.5 billion for Nortel, considering the level of interest it has generated.
Nortel patents have been licensed by iPhone maker Apple, BlackBerry maker Research in Motion and smartphones based on Google Android. The company which purchases the patents will be entitled to license fees from these companies.
Microsoft is also trying to bid for the patents, it has been rumored, through a consortium that it leads. The company has chosen to remain mum about its plans pertaining to Nortel’s patents.