Unlikely team-up of Microsoft, Apple, Sony seen to protect patents at Nortel trial

Bloomberg said Microsoft Corp, Apple Inc and Sony Corp had earlier teamed up to buy over 6,000 patents from bankrupt Nortel Networks Corp. In the bankruptcy trial that will begin today, lawyers of the Bill Gates-founded company are expected to be on hand to guard the secrets the patents hold from publication as US, Canadian and UK creditor seek to work on an arrangement on how it will divide the cash that was raised from multiple auctions following the bankruptcy of the then-largest telephone equipment maker.

The news agency said that Nortel had put its units under the US, European and Canadian court jurisdictions, which makes the resolution of the case more difficult to be settled between the creditors. The $4.5 billion sale to the unlikely technology company venture was said to be the key sticking point between the two groups in the case.

According to the Canadian creditor group CRT Capital Group Inc, which includes the pension system of Nortel, the cash from the sale should go towards them on the basis that Nortel was based in Ontario and had owned the patents. The US group, on the other hand, argued that the US businesses actually held the licenses for the patents at issue, and therefore they deserve the money. The US group includes bondholders who are reportedly seeking full interest payments from Nortel's shuttering.

Nortel's US attorneys have said that around a thousand documents could be used in the trial that could contain sensitive information. The documents could be forced to be made public as a matter of record as the papers will eventually be presented to witnesses at the trial. The patent holders are reportedly keen to ensure that they review the records first before introducing them to court to avoid any accidental leaking of trade secrets. On the other hand, both creditors have agreed that the absence of clear rules could disrupt the trial over the issue of the confidential information present in some of the documents.

Bloomberg said judges in Wilmington, Delaware, and Toronto will be presiding over the proceeding, which will be conducted via video link.

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Microsoft Corp, Apple Inc, Sony Corp, Nortel Networks Corp

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