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Apple Purchases 1,024 Patents From Rockstar Consortium

By - Source: BusinessInsider | B 30 comments

Apple continues to spend billions on patents to protect its products.

It has been confirmed that Apple has purchased a total of 1024 patents from Rockstar Consortium. The Rockstar Consortium has been passing the patents to the technology company over the past six months. A Korean regulator initially confirmed that the patents and patent applications were transferred from the consortium to Apple. The U.S. Patent and Trademark Office database has since also confirmed the transfer.

Rockstar Consortium is a group of technology firms such as Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony. Collectively, they purchased Nortel Networks' 6,000 patent portfolio for $4.5 billion in an auction back in June, 2011. Such patents related to technologies including semiconductors, wireless, wireless 4G, data networking, optical, voice and internet.

Apple itself contributed $2.5 billion to the deal, meaning the company already had access to the patents. However, having access to patents and owning them outright are different.

Last year, the smartphone industry spent $20 billion on patents. For the first time in their history, spending by both Apple and Google on patents exceeded their spending on research and development of new products.

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Top Comments
  • 37 Hide
    NightLight , November 18, 2012 9:03 AM
    this has to end
  • 25 Hide
    monsta , November 18, 2012 9:30 AM
    Do they really need more patents?
    Apple attributed 2.5 billion?
    2.5 billion could stop famine and poverty in 3rd world countries....but who cares right?
  • 23 Hide
    aragis , November 18, 2012 12:02 PM
    1024, hmmm.... So thats 1 kp (kilopatent)
Other Comments
    Display all 30 comments.
  • 37 Hide
    NightLight , November 18, 2012 9:03 AM
    this has to end
  • 22 Hide
    dark_wizzie , November 18, 2012 9:21 AM
    I'm going to start a new company where we make no products, but we get patents on everything on planet earth! I'm going to be RICH!
  • 8 Hide
    cosmic101 , November 18, 2012 9:21 AM
    And it shows in the R&d, apple maps, unpoliced Google chrome apps etc
  • 25 Hide
    monsta , November 18, 2012 9:30 AM
    Do they really need more patents?
    Apple attributed 2.5 billion?
    2.5 billion could stop famine and poverty in 3rd world countries....but who cares right?
  • 21 Hide
    abbadon_34 , November 18, 2012 9:44 AM
    If they truely had good unique products they wouldn't need to "spend billions on patents to protect its products"
  • 21 Hide
    rdc85 , November 18, 2012 9:50 AM
    "...spending by both Apple and Google on patents exceeded their spending on research and development of new products...."

    This really makes me sad....
  • 2 Hide
    lengcaifai , November 18, 2012 10:25 AM
    lets see when these patent company left nothing to sell but only patterns.... oops is patent
  • 9 Hide
    Soulmachiklamo , November 18, 2012 11:48 AM
    What if you could invent a patent that involves buying/selling patents..; Apple'd hate you :D 
  • 5 Hide
    A Bad Day , November 18, 2012 11:55 AM
    monstaDo they really need more patents?Apple attributed 2.5 billion?2.5 billion could stop famine and poverty in 3rd world countries....but who cares right?


    But those 2.5 billion could also be used to shutdown competition, thus boosting profit margins and eventually repaying the expense. Even though they have so much money that it puts the US Treasury in shame.

    /sarcasm
  • 23 Hide
    aragis , November 18, 2012 12:02 PM
    1024, hmmm.... So thats 1 kp (kilopatent)
  • 7 Hide
    mesab66 , November 18, 2012 12:03 PM
    "For the first time in their history, spending by both Apple and Google on patents exceeded their spending on research and development of new products."

    Sad days indeed!
  • 0 Hide
    yellowblue , November 18, 2012 12:38 PM
    Blame Creative Labs for starting the fire...

    You can't just develop anything in random especially if you don't own a large chunk of patent in a certain domain or if you don't have a cross licensing agreement to someone bigger especially if you are a relatively new player. The more patent you have the less limitation to innovate in that field. If you are extremely lucky to start an entirely brand new product you are rewarded with a patent that will give you lots of chance and momentum to expand on your original idea. Ex. Creative with portable MP3 player back in 2001 and iPod was several months late so Apple paid the price even if their product ended up being more popular during the time the patent was awarded 4 years later. Patent does not guarantee success, innovation still is but having more patent gives you more room to innovate. If Apple did not own lots of GUI related patent and patents acquired from iPod development, iPhone/iOS/iPad might not exist today and so the clones.
  • 7 Hide
    Anonymous , November 18, 2012 12:48 PM
    Yea Apple is becoming greedy, see their stock price is taking a beating. Been inflated too long. Needs to drop under $100 a share.
  • 1 Hide
    Skeete_UK , November 18, 2012 12:50 PM
    "If Apple did not own lots of GUI related patent and patents acquired from iPod development, iPhone/iOS/iPad might not exist today and so the clones."

    Yeah we might have far cheaper and better alternatives, but innovation to benefit the consumer is not what its about is it.
  • 3 Hide
    wemakeourfuture , November 18, 2012 12:55 PM
    dark_wizzieI'm going to start a new company where we make no products, but we get patents on everything on planet earth! I'm going to be RICH!



    You're kind of late, companies have been doing patent fillings as their business for decades.
    They either 1. Show around their patents to larger firms, 2. Sit back and wait for a company to violate the patent and sue to sell the rights or get royalty.

  • -2 Hide
    Anonymous , November 18, 2012 12:56 PM
    All the comments by those who clearly are consumers of tech and likely never started a biz; are laughable. Comments like: Spend the money on famine, no innovation, this sucks, are the type of comments that those who have never created a product or company would make. Start a company, make a product, or shut the hell up. What do you know about this subject? Apparently nothing! All you learned about biz is from kindergarten.
  • 1 Hide
    wemakeourfuture , November 18, 2012 1:01 PM
    monstaDo they really need more patents?Apple attributed 2.5 billion?2.5 billion could stop famine and poverty in 3rd world countries....but who cares right?


    Its called a business. You invest money to make more money. And $2.5 billion wouldn't solve famine and poverty in 3rd world countries to begin with. Google bought Motorola for $12.5 Billion and a big chuck of that change was for patents.

    Companies always need more patents otherwise they will stagnate and decay. Patents show you have "new" idea (supposedly...). If you stop getting patents you're basically stopping all R&D and that's suicide for a tech company.
  • -2 Hide
    wemakeourfuture , November 18, 2012 1:07 PM
    smusmuYea Apple is becoming greedy, see their stock price is taking a beating. Been inflated too long. Needs to drop under $100 a share.


    And what are you basing this on? Every conceivable metric for stock pricing would completely disagree with your assessment. I do believe a good strategy is to short Apple in Q2 of 2013, that would be a good time to short it, but currently and even then its stock price is valued well above $100.
  • -4 Hide
    f-14 , November 18, 2012 4:46 PM
    monstaDo they really need more patents?Apple attributed 2.5 billion?2.5 billion could stop famine and poverty in 3rd world countries....but who cares right?


    i'm sure it could put a dent in it 1%-5%

    steve jobs did not make apple to give money away to people who would never have enough money to buy his future over priced outdates products later on.
    and neither do you!

    do you fork over every penny you have and work 3 jobs to give every cent to the starving?
    if so that is very saintly of you, you are a great socialist/communist, NObama didn't even have to force you to give your money to others who did not earn anything other than for merely being alive.

    that's very commendable, IF YOU DO give everything you have.

    you also will never be rich or have money to run any company and be successful at it and that company will never be able to do ANYTHING.

    that's what charities are for.
  • 6 Hide
    eklipz330 , November 18, 2012 4:53 PM
    it has never been a better time to be a lawyer... capitalist america is officially broken
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