Apple-backed Rockstar Consortium to shed 4,000 patents, end lawsuits in $900M deal
Rockstar Consortium --?the patent holding firm created by Apple, BlackBerry, Ericsson, Microsoft, and Sony to purchase thousands of foundational telecom patents from now-defunct Nortel -- looks set to wind down operations after the partners agreed to sell much of Rockstar's patent portfolio to IP risk mitigation company RPX.
The sale will see RPX pay some $900 million for more than 4,000 patents, according to the Wall Street Journal. It will include "the bulk" of Rockstar's portfolio, though it remains unclear which patents will be held back and how they will be disposed of.
As part of the agreement, Rockstar will also end all ongoing litigation, including suits against South Korean firms Samsung and LG, Taiwan's HTC, and China's Huawei.
RPX is a publicly-traded patent consortium that purchases and licenses patents on behalf of its members --?which include Google and Cisco, among others -- who can then leverage the portfolio to defend themselves against infringement allegations. RPX has pledged not to use the cache for offensive action.
"This is the biggest syndicate of its kind and its formation proves that companies can actually collaborate in...cooperative licensing at scale," RPX CEO John Amster said in a statement to the Journal.
Rockstar's partners paid $4.5 billion for over 6,000 Nortel patents in 2011, divvying up 2,000 of the most important patents among themselves and leaving Rockstar to work out licensing deals for the remainder. The patents assigned directly to the partners are not included in the sale to RPX.
The sale will see RPX pay some $900 million for more than 4,000 patents, according to the Wall Street Journal. It will include "the bulk" of Rockstar's portfolio, though it remains unclear which patents will be held back and how they will be disposed of.
As part of the agreement, Rockstar will also end all ongoing litigation, including suits against South Korean firms Samsung and LG, Taiwan's HTC, and China's Huawei.
RPX is a publicly-traded patent consortium that purchases and licenses patents on behalf of its members --?which include Google and Cisco, among others -- who can then leverage the portfolio to defend themselves against infringement allegations. RPX has pledged not to use the cache for offensive action.
"This is the biggest syndicate of its kind and its formation proves that companies can actually collaborate in...cooperative licensing at scale," RPX CEO John Amster said in a statement to the Journal.
Rockstar's partners paid $4.5 billion for over 6,000 Nortel patents in 2011, divvying up 2,000 of the most important patents among themselves and leaving Rockstar to work out licensing deals for the remainder. The patents assigned directly to the partners are not included in the sale to RPX.
Comments
Total nonsense.
Agreed. It's time for some major reforms in patent law.
Maybe the ones they are keeping are worth > $3.6 billion.
I don't get it. Why spend 4.5 billion if you sell the majority for 900mm?
From the article:
"Rockstar's partners paid $4.5 billion for over 6,000 Nortel patents in 2011, divvying up 2,000 of the most important patents among themselves and leaving Rockstar to work out licensing deals for the remainder."
I don't think they're losing any money/value from this deal. They got what they were most interested in and are recovering money from the ones they don't need.
It protects the interests of its members by holding and managing these patents to defend against trolls.
RPX is certainly no patent troll. They're one of the few patent aggregators pledging to never offensively assert a single one of the patents they control. This is a good thing.
http://www.rpxcorp.com/
RPX is certainly no patent troll. They're one of the few patent aggregators pledging to never offensively assert a single one of the patents they control. This is a good thing.
http://www.rpxcorp.com/
Then they are wimps. If you own a patent and someone is infringing, then you have every right both legally and morally to go after them for royalties.
What you don't have a right to do is typical patent troll activities like filing lawsuits without first trying to negotiate in good faith, filing lawsuits without properly identifying which products infringe which patents (and providing a detailed analysis of how they infringe), sending demand letters hoping to get quick payouts without ever going to court and so on.
What does RPX do if a member company assigns patents to RPX in exchange for access to the entire portfolio, then saw a non-member company start using those patents without permission? Are they really going to stand by and let someone use their IP for free?
If so, then what's the benefit of even joining RPX? Just find out what patents they hold and start using them for FREE, since RPX won't ever go after you for using them.
Correct. They won't go after you for using one of them according to their website. Having the right to litigate a patent certainly doesn't make it an obligation to do so does it?
I gave you a link earlier if you had any interest in understanding their business plan and the benefits of joining. Recognize any of the names on this list? They seem to feel it's worthwhile.
http://www.rpxcorp.com/rpx-membership/rpx-client-network/
Interesting. They are basically doubling in size as a result of this single transaction:
http://www.rpxcorp.com/rpx-services/rpx-sell-your-patent/
"RPX is one of the leading buyers in the patent market. Since 2008, we have invested more than $890 million to acquire more than 4,900 US and international patent assets..."
"Transaction Size: Our transactions to date have ranged from acquisitions of individual patents to acquisitions of portfolios consisting of dozens of patents. Valuations have ranged from tens of thousands to tens of millions of dollars."
If so, then what's the benefit of even joining RPX? Just find out what patents they hold and start using them for FREE, since RPX won't ever go after you for using them.
Excellent question. Here's part of their answer:
It does appear that patent they acquire are essentially in the public domain (at least as a practical matter).
Correct. They won't go after you for using one of them according to their website. Having the right to litigate a patent certainly doesn't make it an obligation to do so does it?
I gave you a link earlier if you had any interest in understanding their business plan and the benefits of joining. Recognize any of the names on this list? They seem to feel it's worthwhile.
http://www.rpxcorp.com/rpx-membership/rpx-client-network/
I read up on their business model on their website. It still doesn't answer my question.
Why pay a subscription fee (which is their business model and method of earning revenues) to RPX to get access to their patents when you could just use them for FREE? Why pay for something that you can apparently use without fear of litigation?
I don't get it. Why spend 4.5 billion if you sell the majority for 900mm?
Perhaps the patents they are selling, the Rockstar companies get to keep a license for (no fees)?
If RPX wishes to license them elsewhere, they can but Apple, Sony, MS, et al. are free & clear to use them.
So why not tell who’s wrong what’s wrong.
So why not tell who’s wrong what’s wrong.
Isn't it fairly obvious?!
The reading comprehension level on this forum is astounding.
So why not tell who’s wrong what’s wrong.
The irony is almost too much!
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