DOJ probes Apple's interest in Nortel patents
The U.S. Department of Justice is concerned about potential bids from Apple for a cache of patents being sold by Canadian telecom company Nortel, given the iPhone maker's legal track record.
The Wall Street Journal reports that the Justice Department is investigating companies interested in bidding on a collection of more than 6,000 patents from the now bankrupt Nortel including valuable intellectual property related to the 4G LTE standard.
The agency fears that U.S. technology giants, such as Apple and Google, could leverage the patents to block competition in the high-tech and wireless industries. According to people familiar with the matter, the DOJ hasn't found "major competitive issues" with Google, which has set the opening bid for the patents. However, officials reportedly have "greater concerns" about Apple. Sources said the company has been in talks with the Justice Department to address its concerns.
One legal expert called the trove "a stockpile of nuclear weapons as far as patents go." The auction is set to begin on June 20.
Late last year, Apple, Google, Nokia and Research in Motion were named as likely bidders on the patents. In April, Google's 900 million bid was accepted as a 'stalking-horse' offer.
?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,? Google general counsel Kent Walker said in April. ?So after a lot of thought, we?ve decided to bid for Nortel?s patent portfolio in the company?s bankruptcy auction."
RIM has reportedly seriously considered topping Google's bid. Co-CEO Mike Lazaridis has called Nortel's LTE patents a "national treasure" in the past. It has also been suggested that a group of technology companies, which could include RIM, may pool their resources to outbid Google.
The Nortel situation has drawn comparisons to regulatory reaction earlier this year to a consortium of companies looking to acquire patents from Novell. Apple, Microsoft, Oracle and EMC created a joint holdings company to purchase 882 Novell patents after the company was acquired by Attachmate.
However, the deal prompted criticism from open source advocates worried that the companies would use the patents to damage open source competitors. In April, the Justice Department forced the consortium to promise not to use the Novell portfolio to unfairly stifle competition. Microsoft was also required to license patents instead of buying them.
The Wall Street Journal reports that the Justice Department is investigating companies interested in bidding on a collection of more than 6,000 patents from the now bankrupt Nortel including valuable intellectual property related to the 4G LTE standard.
The agency fears that U.S. technology giants, such as Apple and Google, could leverage the patents to block competition in the high-tech and wireless industries. According to people familiar with the matter, the DOJ hasn't found "major competitive issues" with Google, which has set the opening bid for the patents. However, officials reportedly have "greater concerns" about Apple. Sources said the company has been in talks with the Justice Department to address its concerns.
One legal expert called the trove "a stockpile of nuclear weapons as far as patents go." The auction is set to begin on June 20.
Late last year, Apple, Google, Nokia and Research in Motion were named as likely bidders on the patents. In April, Google's 900 million bid was accepted as a 'stalking-horse' offer.
?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,? Google general counsel Kent Walker said in April. ?So after a lot of thought, we?ve decided to bid for Nortel?s patent portfolio in the company?s bankruptcy auction."
RIM has reportedly seriously considered topping Google's bid. Co-CEO Mike Lazaridis has called Nortel's LTE patents a "national treasure" in the past. It has also been suggested that a group of technology companies, which could include RIM, may pool their resources to outbid Google.
The Nortel situation has drawn comparisons to regulatory reaction earlier this year to a consortium of companies looking to acquire patents from Novell. Apple, Microsoft, Oracle and EMC created a joint holdings company to purchase 882 Novell patents after the company was acquired by Attachmate.
However, the deal prompted criticism from open source advocates worried that the companies would use the patents to damage open source competitors. In April, the Justice Department forced the consortium to promise not to use the Novell portfolio to unfairly stifle competition. Microsoft was also required to license patents instead of buying them.
Comments
According to people familiar with the matter, the DOJ hasn't found "major competitive issues" with Google, which has set the opening bid for the patents. However, reviewers reportedly have "greater concerns" about Apple.
Top Contributors To Obama, 2008
University of California\t$1,591,395
Goldman Sachs\t$994,795
Harvard University\t$854,747
Microsoft Corp\t$833,617
Google Inc\t$803,436
Citigroup Inc\t$701,290
JPMorgan Chase & Co\t$695,132
Time Warner\t$590,084
Sidley Austin LLP\t$588,598
Stanford University\t$586,557
National Amusements Inc\t$551,683
UBS AG\t$543,219
Wilmerhale Llp\t$542,618
Skadden, Arps et al\t$530,839
IBM Corp\t$528,822
Columbia University\t$528,302
Morgan Stanley\t$514,881
General Electric\t$499,130
US Government\t$494,820
Latham & Watkins\t$493,835
http://www.opensecrets.org/pres08/co...&cid=N00009638
[...] given the iPhone maker's legal track record.
Sorry, could you be more specific and try to elaborate. If you mean them going to court defending their in-house portfolio, nothing's wrong with that. For bought IP, maybe...
Top Contributors To Obama, 2008
University of California\t$1,591,395
Goldman Sachs\t$994,795
Harvard University\t$854,747
Microsoft Corp\t$833,617
Google Inc\t$803,436
Citigroup Inc\t$701,290
JPMorgan Chase & Co\t$695,132
Time Warner\t$590,084
Sidley Austin LLP\t$588,598
Stanford University\t$586,557
National Amusements Inc\t$551,683
UBS AG\t$543,219
Wilmerhale Llp\t$542,618
Skadden, Arps et al\t$530,839
IBM Corp\t$528,822
Columbia University\t$528,302
Morgan Stanley\t$514,881
General Electric\t$499,130
US Government\t$494,820
Latham & Watkins\t$493,835
http://www.opensecrets.org/pres08/co...&cid=N00009638
So what. Several of those top donors won't be there in 2012 because they won't like the necessity of streamlining the Military, redundant health services, and especially the need to raise taxes on the wealthy to balance the budget.
Sorry, could you be more specific and try to elaborate. If you mean them going to court defending their in-house portfolio, nothing's wrong with that. For bought IP, maybe...
Actually, it's mandatory do defend your patents rigorously under US law or risk losing them I believe.
Why does the 'open source community' always have to assume the very worst motives of large corporations like Apple. Maybe it's justified, but let's not just assume the worst.
It has to be said, if this portfolio is so valuable, surely Apple can go over anyone's head with the bidding at this point in time. $50b in readies.
Actually, it's mandatory do defend your patents rigorously under US law or risk losing them I believe.
I thought it was only trademarks that required the fervent defense, not patents (or copyrights).
So what. Several of those top donors won't be there in 2012 because they won't like the necessity of streamlining the Military, redundant health services, and especially the need to raise taxes on the wealthy to balance the budget.
Sorry, not getting your point. Contributors to left wing candidate will not contribute to left wing candidate in the future because he wants to implement left wing policies?
Not sure that's true, but also don't see how it ties in with DoJ (part of executive branch) not finding a problem with a company (Google) that has made large political donations, yet finding problems with another company that hasn't (Apple), despite the fact that the two are in exactly the same business with regard to these patents.
So what. Several of those top donors won't be there in 2012 because they won't like the necessity of streamlining the Military, redundant health services, and especially the need to raise taxes on the wealthy to balance the budget.
Do you know that "raising taxes on the wealthy" is only political class warfare. Interesting how some politicians try to benefit by pinning Americans against Americans. The fact is if you taxed "the rich" at 100%, meaning you take ALL their income, that that is only a drop in bucket toward reducing the national debt.
Think of it this way. If you're taxed at 30% then you're working not for yourself or the company you work at, but for the government for that percentage of every day.
Curious about that $1 a year salary Mr. Jobs himself takes each year. Wonder which tax bracket that puts him in.
Why does the 'open source community' always have to assume the very worst motives of large corporations like Apple. Maybe it's justified, but let's not just assume the worst.
I believe Microsoft once hoped to torpedo Linux via patents. Also, just in general, open source folks tend to be against the idea of software patents.
Do you know that "raising taxes on the wealthy" is only political class warfare.
Also rings hollow when CEO of GE, which paid $0.00 in taxes and was a major donor to Obama, chairs the Obama's Jobs Council.
Folks who think corporations don't support the left are living in the wrong century. Would recommend they brush up on Corporatism http://en.wikipedia.org/wiki/Corporatism
I think that Apple should hire some nasty racists (not white racists), then the DOJ would back down and not pursue this issue any further.
The DOJ also shut down two of my favorite poker sites recently. I got my money back from one of them, and I'm still waiting to get my money back from the other one.
Do you know that "raising taxes on the wealthy" is only political class warfare. Interesting how some politicians try to benefit by pinning Americans against Americans. The fact is if you taxed "the rich" at 100%, meaning you take ALL their income, that that is only a drop in bucket toward reducing the national debt.
.
Raising taxes on the wealthy isn't political class warfare, it is just an extension of commonly accepted practices. In most countries, the poorest are taxed at a lower rate (I can't speak for the US)
According to http://en.wikipedia.org/wiki/Income_..._United_States
"Today, the top 1% account for 24% of all income"
And here: http://en.wikipedia.org/wiki/Househo..._United_States
"In 2006, there were approximately 116,011,000 households in the United States."
and
"In 2006, the "real" (adjusted for inflation) median annual household income rose 1.3% to $50,233.00 according to the Census Bureau"
So that would mean that the total income in the US in 2006 (the most recent numbers I could find) was $5,827,580,560,000. Thats $5 trillion, 827 Billion.
So, if you taxed the richest 1% at 100%, you'd get $1.39 trillion per year. Not really "only a drop in the bucket"
I'm not arguing that it is right to tax the richest at a higher rate, but you should try to be factual when making such a claim.
Raising taxes on the wealthy isn't political class warfare, it is just an extension of commonly accepted practices. In most countries, the poorest are taxed at a lower rate (I can't speak for the US)
According to http://en.wikipedia.org/wiki/Income_..._United_States
"Today, the top 1% account for 24% of all income"
And here: http://en.wikipedia.org/wiki/Househo..._United_States
"In 2006, there were approximately 116,011,000 households in the United States."
and
"In 2006, the "real" (adjusted for inflation) median annual household income rose 1.3% to $50,233.00 according to the Census Bureau"
So that would mean that the total income in the US in 2006 (the most recent numbers I could find) was $5,827,580,560,000. Thats $5 trillion, 827 Billion.
So, if you taxed the richest 1% at 100%, you'd get $1.39 trillion per year. Not really "only a drop in the bucket"
I'm not arguing that it is right to tax the richest at a higher rate, but you should try to be factual when making such a claim.
You really need to understand the difference between 'mean' and 'median' before spouting off on such matters.
And, the fact that it makes no sense to multiply the median by any other number.
"In 2006, the "real" (adjusted for inflation) median annual household income rose 1.3% to $50,233.00 according to the Census Bureau"
So that would mean that the total income in the US in 2006 (the most recent numbers I could find) was $5,827,580,560,000. Thats $5 trillion, 827 Billion.
Doesn't mean that. "Median" is the number in the middle of the list if you sort the list numerically. You can't multiply the median by the number of items on the list and get the total value of the list.
Edit:
I see anantksundaram beat me to it.
You really need to understand the difference between 'mean' and 'median' before spouting off on such matters.
And, the fact that it makes no sense to multiply the median by any other number.
Well, no, I just need to learn to read.
My bad.
... the iPhone maker's legal track record ...
Presumably Microsoft is banned completely because of its illegal track record?
Doesn't mean that. "Median" is the number in the middle of the list if you sort the list numerically. You can't multiply the median by the number of items on the list and get the total value of the list.
Edit:
I see anantksundaram beat me to it.
I found the correct 2008 numbers (mean income instead of median) at http://www.census.gov/compendia/stat...es/11s0689.xls
117,181,000 households
Mean household income: $68,424 (incidentally, the lowest it had been since 1998)
Total US income in 2008: $8,017,992,740,000
*24% $1,924,318,260,000
Sorry for my carelessness.
Presumably Microsoft is banned completely because of its illegal track record?
Microsoft was banned from buying Novell patents, not Nortel patents. That may have to do with Microsoft trying to torpedo Linux at one time, as Novel was involved in that effort.