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Apple pressured; may eye Nokia, RIM patents - Jefferies
August 16, 2011 / 12:21 PM / 6 years ago

Apple pressured; may eye Nokia, RIM patents - Jefferies

* Google’s MMI buy pressures Apple

* Nokia, InterDigital, RIM patents possible Apple targets

Aug 16 (Reuters) - 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 said.

The brokerage sees Nokia NOK1V.HE, InterDigital (IDCC.O), and Research In Motion’s RIM.TO patents as potential targets for Apple.

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

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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 pursue.

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 price target.

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 Saumyadeb Chakrabarty)

sayantani.ghosh@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sayantani.ghosh.reuters.com@reuters.net Keywords: APPLE/RESEARCH JEFFERIES

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