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Apple-Led Rockstar Consortium Sells Remaining Patent Portfolio for $900 Million

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Apr 12, 2001
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San Francisco patent company RPX today announced it is purchasing more than 4,000 telecommunications patents from Rockstar, an Apple-led consortium that previously acquired the patents from bankrupt Nortel Networks. The sale will net Rockstar $900 million, a fraction of the $4.5 billion the conglomerate of technology companies paid for the entire patent portfolio in 2011, although many of the high-value patents were previously dispersed to the consortium's members.

rockstar-logo.png
As reported by The Wall Street Journal, RPX confirmed its subsidiary RPX Clearinghouse, will license the patents to a syndicate of technology companies that include Google and Cisco Systems. RPX is making the patents available with non-exclusive licenses to all syndicate members, whose funds helped pay for the purchase. RPX also will license the patents to outside companies under fair, reasonable, and non-discriminatory (FRAND) terms, and members of the Rockstar consortium will retain licenses for the patents.

Rockstar was formed in 2011 when Apple, BlackBerry, Ericsson, Microsoft, and Sony joined together to purchase patents from bankrupt communications company Nortel. The consortium purchased 6,000 patents, with 4,000 patents being held under the Rockstar umbrella and the remaining 2,000 patents being distributed to member companies.

The sale of the patents follows Rockstar's rather unsuccessful attempts to license the patents. The consortium also filed patent infringement lawsuits against a variety of technology companies with Google and Cisco recently settling their disputes for undisclosed amounts. As part of this patent sale to RPX, Rockstar has agreed to drop its existing suits against Samsung, LG and HTC.

Article Link: Apple-Led Rockstar Consortium Sells Remaining Patent Portfolio for $900 Million
 
Article Link
https://www.macrumors.com/2014/12/23/rockstar-sells-4000-patents-900-million/
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Dec 6, 2012
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The fact that Rockstar and its members (Apple included) keep can continue to use the patents is a good thing, since this should prevent any legal actions later. The only question I have is how they do an ROI on something like this. I mean, they spent $4.5 billion on the patents. They sell some of them and get $1 billion back, so is the ROI the reduction in lawsuits? Given all the other issues they have gone to court for, I am sure they can stick a big number on that, but $3.5 billion?

Basically just curious, since from the outside it looks like they may not invested well on this one, but I am probably missing something.
 
M

mercuryjones

macrumors 6502a
May 31, 2005
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College Station, TX
Cuban Missles said:
The fact that Rockstar and its members (Apple included) keep can continue to use the patents is a good thing, since this should prevent any legal actions later. The only question I have is how they do an ROI on something like this. I mean, they spent $4.5 billion on the patents. They sell some of them and get $1 billion back, so is the ROI the reduction in lawsuits? Given all the other issues they have gone to court for, I am sure they can stick a big number on that, but $3.5 billion?

Basically just curious, since from the outside it looks like they may not invested well on this one, but I am probably missing something.
Click to expand...

It sounds like they cherry picked the best patents out of the lot and then sold off the rest. However, they still retain access to all of the licenses included in the purchase.
Seems like a win/win.
 
L

Laird Knox

macrumors 68000
Jun 18, 2010
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Cuban Missles said:
The fact that Rockstar and its members (Apple included) keep can continue to use the patents is a good thing, since this should prevent any legal actions later. The only question I have is how they do an ROI on something like this. I mean, they spent $4.5 billion on the patents. They sell some of them and get $1 billion back, so is the ROI the reduction in lawsuits? Given all the other issues they have gone to court for, I am sure they can stick a big number on that, but $3.5 billion?

Basically just curious, since from the outside it looks like they may not invested well on this one, but I am probably missing something.
Click to expand...

We don't have all the information. Not only did they retain 1/3 of the patents they also got settlements from Google and Cisco that other than initial sums may include ongoing royalty payments.

They may have done well on a dollar for dollar basis but definitely did well on protecting their business.
 
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