Google plans to bid $900 million in cash for Nortel Networks' patent portfolio in a bankruptcy auction scheduled for June.
Nortel, the Canadian maker of telecommunications equipment has selected Google's offer as the "stalking horse bid" to serve as the starting point in the bidding process, Google said.
If successful, Google hopes this portfolio will not only create a disincentive for others to sue Google, but also help the company and its partners continue to innovate.
"In the absence of meaningful reform, we believe it's the best long-term solution for Google, our users and our partners, " Kent Walker, Senior Vice President & General Counsel at Google wrote at the company's blog.
"One of a company?s best defenses against this kind of litigation is (ironically) to have a formidable patent portfolio, as this helps maintain your freedom to develop new products and services. Google is a relatively young company, and although we have a growing number of patents, many of our competitors have larger portfolios given their longer histories," Walker added.