Apple Contributing $2.6 Billion Toward Nortel Patent Purchase - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple Contributing $2.6 Billion Toward Nortel Patent Purchase

nortel logo1
Earlier this month, an Apple-led consortium beat out Google in an auction of thousands of patents from bankrupt Nortel, bidding $4.5 billion for the entire package of patents. As noted by @SammyWalrusIV (via Business Insider), Apple 10-Q quarterly report filed with the U.S. Securities and Exchange Commission revealed that Apple's contribution to that effort totaled $2.6 billion.

On June 27, 2011, the Company, as part of a consortium, participated in the acquisition of Nortel's patent portfolio for an overall purchase price of $4.5 billion, of which the Company's contribution will be approximately $2.6 billion. This asset acquisition is subject to approval by various regulatory agencies.

Apple's partners in the deal included EMC, Ericsson, Microsoft, Research in Motion, and Sony. Apple's $2.6 billion contribution represents 58% of the entire purchase price of the Nortel patent portfolio. The large number may add credence to the rumor to have paid $2 billion for "outright ownership" of Nortel's LTE (4G) patent technology.

And Apple may not be finished with its efforts to purchase intellectual property on the open market, as the company is said to be considering going up against Google again for a portfolio of 1,300 patents related to mobile phone technologies being offered by InterDigital.

Popular Stories

Apple Event Logo

Apple Working on All-New Operating System

Wednesday July 29, 2026 11:39 am PDT by
Apple is developing an all-new operating system that is essentially a mix of tvOS, watchOS, and iOS, according to Bloomberg's Mark Gurman. In a report this week, he said the operating system will feature a grid of icons, widgets, and apps, along with customizable clock faces. The new software platform is intended for Apple's long-rumored smart home hub. With built-in facial recognition,...
imac video apple feature

Apple Made Its Second-Biggest Acquisition Ever This Year

Wednesday July 29, 2026 12:03 pm PDT by
Apple this year acquired Israeli startup Q.ai for close to $2 billion, according to the Financial Times. That would make this Apple's second-biggest acquisition ever, after it paid $3 billion for the popular headphone maker Beats in 2014. This is also the largest known Apple acquisition since the company purchased Intel's smartphone modem business and patents for $1 billion in 2019. Q.ai...
Dynamic Island iPhone 18 Pro Feature

iPhone 18 Pro: Twelve Changes Coming to Apple's Next Flagship

Thursday July 30, 2026 3:43 am PDT by
We're less than two months out from the launch of Apple's premium next-generation smartphone lineup, and while we're not expecting a dramatic change in terms of functionality, there are still several enhancements rumored to be coming to the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth noting is that Apple is reportedly planning a major change to its iPhone release cycle this year,...

Top Rated Comments

196 months ago
Begun, this patent war has.
Score: 3 Votes (Like | Disagree)
*LTD* Avatar
196 months ago
Apple basically bought everyone's drinks. Nice.
Score: 3 Votes (Like | Disagree)
196 months ago
they will make that back in law suits :)
Score: 2 Votes (Like | Disagree)
GLS Avatar
196 months ago

So thank you, Apple, for doing your part to abuse the already broken system. We really appreciate it. Ugh.

So what was Apple's alternative? To allow Google to get the patents, and do their part to abuse the already broken system?
Score: 1 Votes (Like | Disagree)
arcite Avatar
196 months ago
Kodak is also floating their patent portfolio. Sounds like a way to monetize them while retaining use of them and losing the unpredictable expense of litigating them. I wonder if Apple has enough money from THIS month's net to pay for them, cash. :D

BTW the more recent 10-Q is out which further details their self-financing and expansion efforts. Their entire new HQ project is covered by 1/8 of one fiscal quarter net income after taxes.

They pay over $2.5B per quarter in federal income taxes.

Rocketman

http://investor.apple.com/common/download/download.cfm?companyid=AAPL&fileid=484701&filekey=6542e771-f256-4829-8135-0b1d88c7c2b2&filename=AAPL%20Q3FY11%2010Q%2007.20.11.pdf

June 25, 2011 September 25, 2010
Cash, cash equivalents and marketable securities $ 76,156 $ 51,011
Accounts receivable, net $ 6,102 $ 5,510
Inventory $ 889 $ 1,051
Working capital $ 20,039 $ 20,956

Burn rate?
Cost of sales 16,649
figures in millions

Gotta love it how in 10 short years Apple has become the 10,000 ton Gorilla of the tech world. :eek: :D
Score: 1 Votes (Like | Disagree)
Popeye206 Avatar
196 months ago
Talked with a local high-tech patent lawyer the other night at a local event and he thinks what we're seeing is a shake out in the high-tech patents. His feeling is the method has become "implement someones IP" and then see if they try and protect it. Then hope in court you can dilute or dismiss their claims or obtain a reasonable cross license.

It does seem that protecting your IP and keeping others from implementing it is almost impossible these days. It will be interesting to see what happens.
Score: 1 Votes (Like | Disagree)

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors