Originally Posted by roocka
This is great that Apple owns the LTE patents. I hope the A-team rips Samsung a new A-hole. I hope Google gets hit with a huge anti-trust lawsuit. Then I hope Apple releases a Liquidmetal battery and puts every other computer maker out of their misery.
The story everyone seems to be missing here is who gets what in this consortium deal? Most journalists and bloggers seem to assume the winners will all share equally in the IP spoils. But I have people who know people and the word I am hearing it thats not the way the consortium works at all.
Some consortium members get patents, some get royalties, and some just get freedom from having to pay royalties.
Notice Nokia isnt in the consortium? The Finnish company is apparently covered by Microsoft, tying Nokia even more firmly to Windows Phone.
Heres the consortium participation as I understand it. RIM and Ericsson together put up $1.1 billion with Ericsson getting a fully paid-up license to the portfolio while RIM, as a Canadian company like Nortel, gets a paid-up license plus possibly some carry forward operating losses from Nortel, which has plenty of such losses to spare. For RIM the deal might actually have a net zero cost after tax savings, which the Canadian business press hasnt yet figured out.
Microsoft and Sony put up another $1 billion.
There is a reportedly a side deal for about $400 million with EMC that has the storage company walking with sole ownership of an unspecified subset of the Nortel patents.
Finally Apple put up $2 billion for outright ownership of Nortels Long Term Evolution (4G) patents as well as another package of patents supposedly intended to hobble Android.
At the end of the day this deal isnt about royalties. It is about trying to kill Android.