The New Nortel – Patent King?

VOIP King also

http://www.worldmarketmedia.com/856/section.asp…

no way not when it has decided to wind down and pay off the creditors. nobody is going to sit around waiting for taking there money out while the 'new' company still works in 'old' mode sucked dry by its management.

so stop this repetitive idiotic hopeful rhetoric that the company will still be there. IT IS OVER!!! The patents will be sold off and if you did not get it already, most of the buyers have got a license with the business. So they will purchase all the good ones leaving the garbage behind to be taken out.

They are getting ready to mothball the US HQ “Tower” building in Richardson, TX. It's over. For full payout to bankruptcy creditors, a full liquidation is necessary. 3rd parties have been engaged to deal with chairs, office materials, etc.

It's over. Time to reinvent AAN into a nostalgia site

http://www.ciozone.com/index.php/Mobile-and-Wir…

How many companies have done a reorg via an auction for its patents? Not many (yet Nortel might be the first? huh?)

Analysts say the Nortel LTE patents normally would be worth as little as $100 million to $200 million, but agree that demand is so strong for them that the Chapter 11 auction could send their value soaring. “
(Analysts also said to “hold” their stock the last half decade among unreliable numbers and largest asset a tax write off)

If Nortel does emerge from bankruptcy based on this strategy—and goes on to succeed as a licensing company based on other patents it holds—Lieberman says insolvent companies in other industries might follow suit.

That's a big if, as the company has said it doesn't expect to emerge from Chapter 11 and is currently liquidating its assets.
(exactly, not likely)

in its case is specific to telecom, the financing technique is open to anyone with significant portfolio of intellectual property. Lieberman said, for instance, that he could envision GM emerging from Chapter 11 by selling its auto-making patents to other companies.

“This could be a blueprint for the future,” he said.

(but Nortel? how many times bitten does anyone need to get here?)
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http://www.theglobeandmail.com/report-on-busine…

Nortel said it had no plans to sell its wireless patent inventory, but the company has come under increasing pressure from lenders, suppliers and stranded pensioners to salvage more money from the broken company.
(I disregard anything that follows, “Nortel said” now, they lie)

If the company moves to sell the patents, experts warned that the company should act quickly because patent protections eventually expire.

“Every month that they delay selling these, the value decreases,” said Jennifer Pigg, vice-president of enabling technologies at Yankee Group.

“Every month that they delay selling these, the value decreases,” said Jennifer Pigg, vice-president of enabling technologies at Yankee Group. “My question, is ‘Why now?' Why didn't they start selling these off when they first started selling off the divisions?”

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Again, just how much are these patents worth if the most valuable are LTE for such a short development cycle in future 4G. They already sold their 3G UMTS to ALA who will come out with their own LTE. Ericsson may throw a monkey wrench into things too.

All this premise is based on the value they get from the sale. right? Or more importantly how much a patent holder may be willing to finance them and who on earth trusts Nortel?

The amount they get will Obviously not be enough to satisfy creditors unless they actually put them up to see what they might fetch. I can't see them getting a bid just to see what they are worth and doing what they did to RIM by then walking away. If they bid, its no reserve and a few hundred million vs. a few billion is a far cry from each other given what they would realistically need to emerge from bankruptcy. Do the simple arithmetic.

Poster boy for other insolvent companies to follow as Nortel asks for a $93M incentive plan plus a 3 million reserve pool remains paramount post the largest fraud in their own country. Can they extend further liberties? It may be the first company to ever liquidate like this under Ch11 than 7 to get the most for creditors too but what kind of precedents are being set here.

Will the courts continue to vigorously defend patents with exorbitant settlements, especially for a company like Nortel who lacks so much credibility and the damage it has done?

I doubt these strategically sold last patents will fetch much and a greater priority remains to get disgraced Nortel lacking credibility just thankfully gone to damage no further. Patent bailout artists should see what they did to their bond/shareholders let alone employee to pull such a stunt.

Nope… pry those depreciating patents from this corpse's cold hands before they loot them for proverbial bonuses too. =)

I think the “new” Nortel would be more
akin to BURGER KING !!

KILL THIS BLOG !!!!!

;+) MC

BK still makes good burgers. Nortel is good at flipping them.

Dang! Just when I was getting my hopes up!

Furthermore, if they DELAY long enough, inflation will catch up and the patents will be worth $Trillions.

The mind reels with savvy profit Zchemes. For example, if greedy VISA allowed us to defer payments on, say, used cars we bought on credit for 5-10 years, we could instead use the monthly charge plus interest to keep them in top shape unitl they reached Cassic Car status, then sell them at a handsome profit for all.

Some of the patents in play are related to Antenna technology known MIMO which is used in LTE, WiMAX and 802.11n wireless environments. Each of these solutions is moving forward at different rates and by different customer types. Just like Ethernet and their associated patents has been around for a long time, so will many of these patents.

Who knows if Nortel will exit bankruptcy protection as a Patent Firm. This will be partly decided by the various creditors and what return they expect to receive from these proceedings. I highly doubt a 100% return is expected as that is not common at all in bankruptcy proceedings. Also, would various creditors expect to have an equity position in the Patent Firm should that direction come true.

most patent trolls and companies with a large portfolio kill innovation when they come in for the kill either nipping a competitive product or sucking it for royalties if it becomes successful.

patents should be reduced from the 20 years to 5 or 10 so there is no monopoly. or maybe they should protect small companies to compete until they reach a certain threshold in revenue.

Maybe NAUStalgIA.

“It’s entirely possible that the patent business could be accompanied by a services unit, which currently employs 1,475 people.”

It seems unlikely that there are long-term plans for the business services unit. Any services it performs to buyers will be insourced by the buyers, since Nortel is not going to be the low-cost supplier for anything.

It would be interesting if Nortel remained as solely a technology-licensing operation, but unless it continues generating technology (which it does not seem it will), it will fade over time as the patents expire. I don't see any reason to expect it to maintain significant employment beyond 2 years or so.

Eric Bezille works on Nortel CVAS's carrier VoIP and multimedia marketing activities:”The auction has not created any de-focus, We're in Chapter 11 but we're still winning new business, increasing our market share, and we invest $140 million in R&D, which is more than the turnover of some of our rivals,”

Analysts say the Nortel LTE patents normally would be worth as little as $100 million to $200 million, but agree that demand is so strong for them that the Chapter 11 auction could send their value soaring.

Aw, what the hey, bonuses all around!.