The Rockstar Consortium has a patent portfolio that's worth taking a closer look at. With over 6,000 patents, the consortium has a significant presence in the tech industry.
Their patents cover a wide range of technologies, including mobile devices, software, and networking equipment. This broad scope has led to numerous patent infringement lawsuits.
One notable lawsuit was filed against Google, Apple, and other tech companies, alleging patent infringement related to smartphone technology.
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Nortel Patent Dispute
The Nortel patent dispute is a fascinating story that involves some of the biggest names in tech. Apple, Microsoft, BlackBerry, Ericsson, and Sony formed the Rockstar consortium to purchase Nortel's patent portfolio for $4.5 billion in 2011.
Google initially bid $900,000,000 for the patents, but ultimately lost the auction to Rockstar. Google's highest bid was $4.4 billion, which was still $100 million short of Rockstar's winning bid.
The Rockstar consortium has since filed suit against Google, ASUSTek, HTC, Huawei, LG, Pantech, and ZTE over seven Nortel patents. The patents in question cover database searches, relevance in advertising presentation, and data sorting, which are all crucial to Google's special sauce.
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Google has a cross-licensing agreement with HTC on some patents, but apparently not these. The consortium has had little success in landing large licensing deals for the patents, leading to a potential sale of a portion of the portfolio.
In 2013, Rockstar sold seven patents to Spherix, an intellectual property licensing company, for an undisclosed amount of cash, $1 million in stock, and a share of future licensing income. This transaction may be a model for Rockstar's future sales.
The Rockstar consortium has also dropped its patent infringement claim against Huawei, but the lawsuit against Google remains active. The dispute dates back to June 2011, when the companies engaged in a high-profile bidding war over Nortel's patent portfolio.
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Patent Portfolio
The Rockstar Consortium's patent portfolio is a massive collection of intellectual property. It includes approximately 4,000 U.S. patents and patent applications, along with around 2,000 foreign patents and patent applications.
The consortium purchased this portfolio from the defunct telecommunications company Nortel in 2011. The purchase price was a staggering $4.5 billion, beating Google's highest bid of $4.4 billion.
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After the purchase, the Rockstar Consortium began distributing many patents from the Nortel Portfolio. In fact, the consortium has already sold seven patents in four families to Spherix, an intellectual property licensing company, for an undisclosed amount of cash, $1 million in stock, and a share of future licensing income.
As of February 21, 2014, the Rockstar Portfolio contained 3,516 granted U.S. patents, with Rockstar Consortium entities owning approximately 61% of these patents.
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Litigation and Settlements
The Rockstar Consortium has been involved in a series of high-profile lawsuits over the years.
In 2013, the consortium began filing lawsuits against several companies, including Google, Samsung, and others, for infringement of Rockstar patents.
Google and Rockstar agreed to settle their litigation in a Texas federal court, with a final settlement still being hashed out.
The Rockstar Consortium dropped a patent infringement claim against Huawei after both parties jointly requested dismissal of the lawsuit.
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Google was outbid by the Rockstar Consortium in an auction for Nortel's patent portfolio in 2011, with the consortium paying $4.5 billion for the intellectual property.
The consortium filed suit against Google, ASUSTek, HTC, Huawei, LG, Pantech, and ZTE over seven Nortel patents, accusing Google of infringing on technology that pairs Internet search terms with related advertising.
The Rockstar Consortium's lawsuit against Google remains active, with Google filing a counterclaim last month.
Elysium Analysis
Elysium Analysis was conducted on a snapshot of the U.S. patents and patent applications that made up the Rockstar Portfolio as of February 21, 2014.
The analysis focused on current assignments of patent and application assets, areas of technology covered, and timing of patent expiration dates. Elysium based its analysis on public data from the U.S. Patent and Trademark Office.
Elysium used file histories, reassignment data, and patent text to inform its analysis. This data was sourced from the U.S. Patent and Trademark Office.
The analysis will be updated as more information becomes public.
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Apple's Nortel Patent Sale
The Rockstar Consortium, a group backed by Apple, Microsoft, and other tech giants, acquired over 4,000 patents from Nortel in 2011 for $4.5 billion.
These patents were part of Nortel's 6,000-patent portfolio, which included technologies such as wireless, data networking, and semiconductors. The consortium's purchase was a major deal, with Google bidding as high as $4.4 billion before ultimately losing out.
The Rockstar Consortium has since been trying to sell a portion of these patents, but with little success in landing large licensing deals. They've even filed lawsuits against companies like Google, Samsung, and HTC for infringing on these patents.
In a move to reduce losses, the consortium is now considering selling a portion of the patents, with potential buyers able to acquire nearly anything from the portfolio - except for the patents involved in ongoing lawsuits.
The patents in question cover technologies such as associative search engines, database searches, and data sorting, which are crucial for Google's special sauce.
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