According to Reuters, Canadian wireless device company, Research In Motion (NASDAQ:RIMM), best known as the developer of the BlackBerry smartphone, has held talks with insolvent Nortel Networks (OTC:NRTLQ), on potential acquisition of next-generation wireless patents that were not part of Nortel’s $1.13 billion wireless asset sale over the weekend.
On Saturday, Toronto-based Nortel, currently under bankruptcy protection from creditors, sold a portfolio of CDMA and next-generation LTE wireless assets to Swedish telecom giant Ericsson (NASDAQ:ERIC).
By trying to buy the LTE (Long Term Evolution) patents still held by Nortel, Waterloo, Ontario-based RIM is clearly refusing to give up in its pursuit of Nortel Networks’ valuable patents that are related to the next-generation wireless business. More importantly, an acquisition of Nortel’s wireless patents could help RIM prepare for fourth-generation wireless networks and secure the co.’s future as a mobile phone technology leader.
Although the current status of the RIM-Nortel talks is not immediately clear, their existence suggest RIM’s intentions in putting together a deal with Nortel. In a statement on Sunday RIM reiterated it “remains interested in acquiring certain Nortel assets,” without providing specifics.
According to Research Capital analyst Nick Agostino, if RIM succeeds in its acquisition attempts, it will future-proof its business and avoid having to license the technology later from another company.