Google Tried Bidding Geeky Numbers For Nortel Patents; How About $3.14159 Billion?
from the taking-this-seriously? dept
Reuters has put together a nice recap of what happened inside the Nortel patent auction, which resulted in Apple, Microsoft, EMC, RIM, Ericsson & Sony getting the patents for $4.5 billion. There are a bunch of interesting bits of information in there, but one of the most bizarre is that rather than bidding round numbers, like pretty much everyone else, Google bid weird numbers that only geeks would recognize:At the auction for Nortel Networks' wireless patents this week, Google's bids were mystifying, such as $1,902,160,540 and $2,614,972,128.Yes, they bid pi. Really not quite sure what to make of this. It could be Google hoped that they'd be able to "signal" to geeks their feelings about the whole process (which the company had been pretty clear about all along -- it didn't want to buy the patents, and seemed to think the whole process was stupid, but it felt compelled to, because it would be even worse if the patents ended up with someone else). However, it certainly does come off as pretty damn cocky -- an attitude that Google is frequently criticized for. Still, it also suggested the level of seriousness (i.e., not much) with which Google treated this whole process. It had to bid a lot of money, but the numbers acted as a bit of a protest for the mess which put them in a position where they felt they needed to do so.
Math whizzes might recognize these numbers as Brun's constant and Meissel-Mertens constant, but it puzzled many of the people involved in the auction, according to three people with direct knowledge of the situation on Friday.
"Google was bidding with numbers that were not even numbers," one of the sources said.
"It became clear that they were bidding with the distance between the earth and the sun. One was the sum of a famous mathematical constant, and then when it got to $3 billion, they bid pi," the source said, adding the bid was $3.14159 billion.
The other interesting bit in the tick tock was how the groupings came about, with coalitions forming as different companies dropped out. Apparently, Intel bid heavily, and when it dropped out, there was a fight between Apple (who put together the winning coalition) and Google over who it would team up with. Intel eventually chose Google.
Of course, that setup makes the whole process seem even sillier. Once they get down to two "teams" why not then just all join forces and set the bid lower (divided among more partners), rather than continue to use each other to drive the bid higher. Well, there's one reason: if the winning bidder intends to use the patents against the losers... Google (with Intel's help) wasn't willing to go to $4.5 billion, but it seems likely they'll end up paying one way or another, down the road, thanks to the new "winners" of the patents.
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Filed Under: geeky, numbers, patents, pi
Companies: google, nortel
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Don't read too much into it
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Re: Don't read too much into it
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Sources?
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At least, that's what I hope they meant.
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The pi billion, that's just hilarious.
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"The numbers. The NUMBERS! Their not even!!!"
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better phones
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Re: better phones
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If someone claims Google is using their patent, Google can turn around and claim they're also using one of Google's patents.
Instead of anyone getting sued, they license out each other's patents for free.
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Re: better phones
By rewarding innovators who are willing to invest heavily in future patent litigation risks. That's what made this country great. People willing to risk capital for the hope of future profits. It's capitalism.
We need a commodity market for trading in patent litigation futures. This will create incentives to further invest capital. It will create jobs -- for lawyers, traders and market managers.
It's a good thing I tell you. Those who suddenly find themselves (somehow!) with a new high school diploma in their hand, but lacking any useful talent or skills to do nerdy geek stuff like "hi tech" can find a comfy job behind a desk. They can help create demand for cool new phones by posting more "kick in the balls" videos, or becoming a major Twit posting about which color lipstick or shoes to buy.
Without our God given right to patents, how would any innovation get done? If other countries start out innovating us, we'll just sue and collect patent royalties. God bless our American lawyers. Eventually if everyone can make a good living collecting patent license royalties, then we will have solved one of mankind's oldest problems and nobody will have to work anymore -- freeing up time to enjoy our new better hi tech phones and concentrate on the fight over whether patent royalties or copyright royalties are more morally better.
It's a bright innovative future!
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You must be behind the times. :-)
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When asked to explain how their 'get rich quick' scheme caused economic fallout that made the great depression look like a minor economic event, all their CEO, Dick ScrewedemGood could say was, "It seemed like the next step in the securities market... taking junk mortgages, combining them, collateralizing them, and selling them to unsuspecting investors as collateralized mortgage objects was such a resounding success that we decided to do the same thing with patents. We took all the junk patents, combined them into one big object, broke the object up into multiple 'options' that could be purchased, then sold all the options to companies looking to protect themselves from being sued for patent infringement. Sure we suspected that there might be some litigation here and there, but since nobody really knows what 'patents' are in the little pieces they bought, nobody should be able to use them to litigate... who knew the judges would decide that all owners had an equal share in all patents, resulting in the current nuclear patent litigation we have going on today..."
Sure, I'm full of it now.... but just wait for someone to try it (I'm patenting this business model, so if anyone is interested, hit me up for the licensing fee).
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I think that is awesome...
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What are patents for? I seem to have forgotten?
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What are patents for? I seem to have forgotten?
Seems you understand patents pretty well.
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It seems some believe Google was simply trying to bid up the price to make everyone else pay more. They didn't want the patents, but they wanted to make sure that whoever got the patents paid a lot for them. This provides those with the patents with less litigation money for one thing, and less money to bid on future bids.
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It was a mistake that Google avoided patent bids for so long. Even if they didn't win many these auctions, at least they could have made sure that those who do win pay a hefty price for those patents, which would have given Google an even better competitive advantage. Avoiding (patent) bids just because you don't think you will win them is a mistake. Make your competitors pay for whatever is being auctioned.
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Google didn't waste any money on these patents, they still have that money to re-invest. They simply bid the price up to make sure that their competitors didn't get all these patents for dirt cheap. It was actually pretty smart of Google.
Besides, if these sorts of patent auctions somehow promote innovation, then what's wrong with Google promoting this innovation by obtaining these patents. If anything, this is evidence that patents should automatically go into the public domain when a corporation goes bankrupt.
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Real smart...
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Maybe Google is run by nutty numerologists.
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Re: Maybe Google is run by nutty numerologists.
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Re: Maybe Google is run by nutty numerologists.
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Sounds more like an observation based on age discrimination given the age of the Google founders.
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/smirk
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get your math together
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Irrational bids
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Tom
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As to why Google would do this? To get people talking about it. "Google Bids 3mil on Patents", isn't as great a headline as "Google Offers Pi for Patents". It gives reporters, yourself included Mike, something to write about beyond what happens. You speculated and wondered and it made for a better story. A better story that people will remember. A better story that people will talk about.
One of my co-workers didn't even know the Nortel patents were up for sale. Another didn't know patents could actually be bought.
By doing this, Google is opening the lines of communication on a system that most people don't know or care about. And that is the true reason why Google is awesome.
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