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Report: Google Cleared to Bid on Nortel Patents

 & Chloe Albanesius Executive Editor, News

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The Justice Department has no objections to Google's $900 million bid for wireless technology patents held by Nortel, according to the Wall Street Journal.

Citing people familiar with the matter, the Journal said antitrust officials have concluded that Google's purchase will not create any competition concerns. Apple and RIM are also reportedly looking to nab the patents and have been talking to Justice officials.

In April, Google said it would make a "stalking horse" bid worth $900 million for all of Nortel's remaining patents and patent applications. The search giant's bid would be the minimum bid for a June 20 auction covering 6,000 patents, and any other entity is welcome to bid, provided they top Google's offer.

Nortel filed for Chapter 11 bankruptcy in January 2009, and started exploring the sale of its businesses and assets in June 2009. The company will presumably use the proceeds to pay off creditors.

The patents cover "wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patent portfolios," Nortel said. "The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking."

In an April 4 blog post, Kent Walker, Google's senior vice president and general counsel, said that Google, as a "relatively young company," had not amassed the sort of patent portfolio owned by its competitors.

Rivals like Microsoft, AT&T, and Verizon on Monday filed an objection to the Google sale, arguing that it would give the search giant an unfair advantage, the Journal said.

About Our Expert

Chloe Albanesius

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

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