Nortel auction highlights rise of patent marketplace

[The Northerner]

Reporting from Chicago — One of the more intriguing auctions scheduled this month won't involve fine art or vintage sports cars or other expensive trinkets, but it is expected to attract some deep pockets.

The bankrupt telecommunications company Nortel Networks is selling a cache of patents that cover a wide range of technologies used in wireless phones and infrastructure, Internet search and social networking.

"We think it's likely that the Nortel portfolio will sell for several billion dollars," said Raymond Zenkich, a partner at Red Chalk Group, a Chicago-based patent broker. "I don't think there's ever been a patent portfolio sold for this amount."

Google Inc., whose Android software is used in smartphones made by Motorola Mobility Holdings Inc., set the opening bid for the private auction at $900 million.

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