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Friday, March 21, 2014
Lenovo Buys Mobile-related Patents From Unwired Planet

Lenovo has agreed to purchase a portfolio of patents from Unwired Planet and to take a term-based license to Unwired Planet's patent portfolio.

The aggregate consideration for the combined transaction is $100 million payable in cash.

The patent purchase consists of 21 patent families owned by Unwired Planet, including patents for 3G and LTE mobile technologies and other important mobility patents.

"This investment is an extension of Lenovo's existing intellectual property portfolio," said Jay Clemens, General Counsel of Lenovo. "It will serve the company well as we grow and develop our worldwide smartphone and mobile PC Plus business in new markets."

Under the terms of the agreement, Lenovo is licensed to Unwired Planet's intellectual property portfolio for a number of years, covering standard essential, implementation, and application layer technology for mobile devices. Following the transaction, Unwired Planet's portfolio will consist of approximately 2,500 issued and pending US and foreign patents.

The transaction is expected to close in 30 days.

Lenovo is is aiming to becoming a major vendor of mobile phones. Already, the company ranks as one of the biggest smartphone vendors in China.

In January, the Chinese company announced it planned to buy Motorola Mobility from Google for $2.9 billion.

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