When Nortel (née Northern Telecom) went belly up, its assets went up for auction. Microsoft bought a block of more than 600,000 IP addresses from Nortel for $7.5 million. A consortium comprising Microsoft, Apple, BlackBerry, Sony, and Ericsson was high bidder at $4.5 billion for Nortel’s patent portfolio. Google bid, but lost to the consortium.
That consortium has named itself Rockstar and become a NPE (non-practicing entity – a polite term for “patent troll”). On its website www.ip-rockstar.com, it calls itself “an intellectual property (IP) licensing company”. It has sued Google, Samsung, et al for patent infringement by Google’s Android operating system. The suit was filed with the U.S. District Court for the Eastern District of Texas — the favorite venue for patent trolls.
Android really bugged Apple’s CEO Steve Jobs. According to biographer Walter Isaacson, Steve swore,
I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank, to right this wrong. I’m going to destroy Android, because it’s a stolen product. I’m willing to go thermonuclear war on this.
The majority of the industry press disagrees with Steve:
- Arstechnica: Patent war goes nuclear: Microsoft, Apple-owned “Rockstar” sues Google
- Engadget: Apple, Microsoft-backed ‘Rockstar’ uses Nortel patents to sue Google, Samsung and others
- Dailytech: Steve Jobs: “I’m Going to Destroy Android, Because It’s a Stolen Product”
Apparently Rockstar consists of a handful of ex-Nortel software people, who’ve spent the last 18 months diligently looking for patent infringements. Rockstar itself has few assets aside from its patents, and is clearly acting as an agent for its principals. The existence of Rockstar seems to allow Microsoft, Apple, et al to disavow knowledge of the dubious dirty work done by patent trolls . . . while still doing the dirty work of patent trolls.
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© Russ Bellew · Fort Lauderdale, Florida, USA · phone 954 873-4695