Skip to Main Content
PCMag editors select and review products independently. If you buy through affiliate links, we may earn commissions, which help support our testing.

Clearinghouse RPX Buys 4,000 Rockstar Patents for $900M

RPX now intends to license those patents to another group of 30-plus tech companies.

By Stephanie Mlot
December 24, 2014
Judge's Gavel

The Apple-led Rockstar Consortium sold 4,000 smartphone patents to the RPX clearinghouse for $900 million.

RPX now intends to license those patents to another group of 30-plus tech companies, including some—like Google and Cisco—which were previously entangled in Rockstar lawsuits.

"We are pleased to act as clearinghouse and underwrite an agreement between the owners of Rockstar and our syndicate of licenses," RPX CEO John Amster said in a statement.

This deal is expected to curb ongoing litigation against handset manufacturers whose phones operate Google's Android OS.

"Leading technology companies from multiple industries came together to shape this transaction," Amster said.

Rockstar was formed by Apple, Microsoft, and others in 2011 as a non-product-making, patent-holding entity. In the same year, the consortium successfully outbid Google and others for 6,000 wireless and cellphone patents in Nortel's intellectual property portfolio. The most valuable 2,000 of them were already distributed to consortium members.

The consortium then proceeded to launch IP infringement lawsuits against a number of companies.

Google was targeted for its Android mobile operating system, which Rockstar claimed violated seven patents related to technology that matches search terms with relevant advertising.

Earlier this year, Google filed a countersuit, claiming the consortium "placed a cloud" over the OS by allegedly harassing makers of Android phones and other Google partners like Facebook and LinkedIn.

In April, Google described entities like Rockstar as "patent trolls" in an appeal to the Federal Trade Commission to curb patent privateering.

Along with Google and Cisco, the Rockstar Consortium has filed patent suits against Asus, HTC, Huawei, LG, Pantech, Samsung, and ZTE.

"With RPX acting as a clearinghouse and deal manager, a global consortium of unprecedented scale came together willingly and reached a fair value for licensing patent rights in a negotiated business transaction instead of a courtroom," Mark Chandler, general counsel for Cisco, said. "This is an approach and transaction that is constructive for the entire industry."

Microsoft's deputy general counsel, Erich Andersen, seconded that emotion, adding that the announcement "is good news for our industry as it demonstrates our patent system working to promote innovation."

"We joined Rockstar to ensure that both Microsoft and our industry would have broad access to the Nortel patent portfolio, and we're pleased to have accomplished that goal through this sale and our valuable license to the patents being sold," Andersen said.

The consortium's members also include BlackBerry and Sony.

"This is the largest syndicate of its kind," Amster said. "And it proves once again that our clearinghouse approach can transform the patent licensing process from one dominated by prolonged litigation to one that is transparent, scalable, and provides a rational outcome for licensors and licensees alike."

Get Our Best Stories!

Sign up for What's New Now to get our top stories delivered to your inbox every morning.

This newsletter may contain advertising, deals, or affiliate links. Subscribing to a newsletter indicates your consent to our Terms of Use and Privacy Policy. You may unsubscribe from the newsletters at any time.


Thanks for signing up!

Your subscription has been confirmed. Keep an eye on your inbox!

Sign up for other newsletters

TRENDING

About Stephanie Mlot

Contributor

Stephanie Mlot

B.A. in Journalism & Public Relations with minor in Communications Media from Indiana University of Pennsylvania (IUP)

Reporter at The Frederick News-Post (2008-2012)

Reporter for PCMag and Geek.com (RIP) (2012-present)

Read Stephanie's full bio

Read the latest from Stephanie Mlot