* Google's MMI buy pressures Apple
* Nokia, InterDigital, RIM patents possible Apple targets
Aug 16 Google's (GOOG.O) $12.5 billion buy of
Motorola Mobility (MMI.N) might hurt Apple's (AAPL.O) ability to
pressure the Android ecosystem and the iPhone maker may try to
strike back by buying up more patent troves, Jefferies & Co
The brokerage sees Nokia NOK1V.HE, InterDigital (IDCC.O),
and Research In Motion's RIM.TO patents as potential targets
Google has been under pressure to build a patent portfolio
after losing out to Apple, Microsoft Corp (MSFT.O) and others in
a recent auction of bankrupt Nortel's assets. [ID:nL3E7JF1LD]
Google's acquisition of Motorola Mobility is an attempt by
the Internet search giant to fend off increasingly aggressive
legal attacks from rivals such as Apple.
"MMI in our view had the broadest and deepest patent
portfolio amongst the wireless players," Jefferies said in a
note to clients, adding the buy may spur Apple -- sitting on a
large cash pile -- into making a purchase of its own.
"We believe Apple is a licensee of Nokia and pays
significant royalties for cross-licensing ... Nokia likely has
at least 50 essential 4G patents and likely over 100 essential
3G patents," the brokerage said.
Essential patents are key parts of technology standards.
Take a Look [ID:nN1E77E0O1]
Reuters Breakingviews [ID:nN1E77E0MJ]
Winners and losers [ID:nN1E77E14X]
Google's acquisition history: r.reuters.com/gaz23s
REUTERS INSIDER link.reuters.com/muv23s
Jefferies said RIM spent over $5 billion in acquiring and
developing its patent portfolio, according to its calculations,
and has critical security related patents that Apple could
Based on the 63 percent premium Google paid for Motorola
Mobility, RIM's could be valued at something over $20 billion.
InterDigital, which is looking to sell itself and was
reportedly being courted by Google, may also interest Apple.
The brokerage has a "buy" rating on Apple's stock and a $500
Shares of Cupertino, California-based Apple were trading
down $2.52 pre-market on Tuesday, after closing at $383.41 on
Monday on Nasdaq.
(Reporting by Sayantani Ghosh in Bangalore; Editing by
((email@example.com; within U.S. +1 646 223
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Keywords: APPLE/RESEARCH JEFFERIES