Nortel plans to sell patents to pay off debts

Nortel plans to sell patents to pay off debtsThe 125-year-old Canadian icon, Nortel, under liquidation to pay off its debtors, have hinted at selling its huge inventory of 4,000 patents related to cutting-edge, next-generation wire

technology. The company has been selling its various businesses to pay off its debtors since June last year.

The Toronto-based company had filed for bankruptcy in the US and Canada in January last year after suffering huge losses and mounting debt.

According to the company, it is now "focused on a number of key actions, including the completion of announced sales and the sale of remaining businesses and assets, as well as exploring

strategic alternatives to maximize the value of the company's intellectual property (over 4,000 patents).''

Blackberry maker Research In Motion (RIM) and Nokia are the main competitors for the patents for its next-generation wireless technology - called long-term evolution (LTE).

Though Nortel has not yet announced on patent sales, media reports have hinted that the company might auction them like its major businesses or offer them under long-tem agreements or enter

into a joint venture with new partners.

If an estimation be trusted Nortel's patent inventory is of worth $1 billion. Though the company announced last year not to sell its patents, it may be forced to do now to raise the remaining debt

and meet pension claims.

As part of its liquidation, Nortel has already sold its next-generation wireless business to Sweden's Ericsson for $1.13 billion, its enterprise division to America's Avaya Inc. for $900 million, and

its optical networking and carrier Ethernet business to the US network specialist Ciena Corp for $769 million.

In times of its height, Nortel accounted for more than a third of the Toronto Stock Exchange and had employed more than 90,000 people worldwide. (With Input from Agencies)