Nokia Sells 500 Patents for $22M USD, Buyer Plans to Start Suing Soon
August 9, 2012 9:46 PM
comment(s) - last by
Patents go towards a mobile firm who recent merged with a well-known patent troll whose already sued Google once
How much do 500 patents covering complex third and fourth generation wireless algorithms and hardware go for these days? The answer, for
Finnish phonemaker Nokia Oyj. (
) is apparently $22M USD.
Nokia sold the patents to Vringo. Vringo was founded in 2006 as a mobile software firm, and has specialized in delivering content to mobile devices. However, in 2012 it switched gears, merging with Innovate/Protect Inc. a notorious
patent monger/non-practicing entity (NPE)
. That company in 2011 successfully sued Google Inc. (
), AOL, IAC/InterActive Corp. (
), Gannett Comp. (
), and Target Corp. (
), among others, using a pair of patents acquired from near-defunct search site Lycos.
Of the 500 patents handed to the "troll", 109 are U.S. patents. And just to eliminate any ambiguity, Vringo said it was eager to soon start on a campaign of lawsuits and forced licensing.
The NPE estimates it could make $31.2M USD from Nokia's patents, almost a 50 percent return on its investment.
Nokia has a history of being a chaotic-bringer in the world of intellectual property. The company
personally started the mobile patent war
by suing Apple, Inc. (
) in 2009, eventually reaching
a favorable settlement
. More recently it has transferred some patents (at no charge)
to affiliated non-practicing entities (trolls)
to sue its smartphone rivals.
Given the filing dates, Vringo says the patents should be good for another 6.7 years, on average.
One of the U.S. foremost senior intellectual property experts --
Judge Richard A. Posner
, a sitting judge on the
Seventh Circuit Court of Appeals
who occasionally moonlights as a judge in Chicago's
U.S. District Court, Northern District of Illinois
-- recently declared that the U.S. intellectual property system
, singling out non-practicing entities and junk software patents as signs of its demise.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
8/10/2012 7:40:38 AM
Nokia is selling off its most valuable assets for peanuts now. They are making themselves less and less attractive to a possible suitor. And on top of that, they aren't selling the patents to actual users, but instead to patent trolls.
RE: Short Sighted
8/10/2012 8:00:52 AM
Which SHOULD invalidate the patents right away. The whole purpose of the patent system is to give developers a chance to bring products to market, and if a company has no desire to bring product to market, their patents SHOULD just be invalidated.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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