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Friday, November 01, 2013
Samsung, Huawei And Google Sued Over Nortel Patents

Rockstar, the group that owns thousands of former Nortel patents, filed patent lawsuits on Thursday against cell phone manufacturers including Google, the company it outbid in the Nortel bankruptcy auction.

Rockstar, which is owned by Apple, Microsoft, Blackberry, Ericsson and Sony, had bought the Nortel patents for $4.5 billion. The group sued Samsung Electronics, HTC, Huawei and four other companies for patent infringement in U.S. District Court in Texas.

Google is accused of infringing seven patents related to technology that helps match Internet search terms with relevant advertising.

Samsung, Huawei and HTC all manufacture phones that operate on Google's Android operating system.

In 2011 Google failed to win Nortel's patents after bidding them for $4.4 billion. Google had initially placed an initial bid of $900,000,000 for the patents. The company subsequently increased its bid multiple times, ultimately bidding as high as $4.4 billion. That price was insufficient to win the auction, as a group led by the current shareholders of Rockstar purchased the portfolio for $4.5 billion. After losing out to Rockstar, Google went on to acquire Motorola Mobility for $12.5 billion.

Rockstar is seeking increased damages against Google, as it claims Google's patent infringement is willful, according to the complaint.

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