Are Apple and Google Putting Aside Their Differences to Team Up?
Why is the Potential Partnership Good for Apple and Google?
When the bidding process first began in August in what is essentially Kodak’s attempt to collect enough cash to pay off its bankruptcy creditors and get back into business, Apple and Google had led separate bids. Apple’s bidding team was formed along with Microsoft (NASDAQ:MSFT) and patent holdings firm Intellectual Ventures, while Google was joined by several of its Android partners, including Samsung and HTC, and RPX Corp.
Patent sale partnerships usually allow rivals to avoid potential infringement litigation. A group including Apple, Microsoft, and Research in Motion (NASDAQ:RIMM) had last year defeated a Google-led team for patents belonging to Nortel Networks. The winning group ultimately paid $4.5 billion, while Google’s initial offer had been for $900 million.
“Apple and Google learned a lesson from the Nortel’s auction,” patent specialist Richard Ehrlickman told Bloomberg. “They have decided to come together in this process to reduce the cost of purchasing the Kodak patents, while meeting their business needs.”
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