Google Inc. v. Rockstar Consortium US LP et al

Filing 78

REPLY (re 67 MOTION to Transfer Case or, in the Alternative to Stay ) filed byMobileStar Technologies LLC, Rockstar Consortium US LP. (Attachments: # 1 Declaration (Supplemental) of Joshua Budwin, # 2 Exhibit 36, # 3 Exhibit 37, # 4 Exhibit 38, # 5 Exhibit 39, # 6 Exhibit 40, # 7 Exhibit 41, # 8 Exhibit 42, # 9 Exhibit 43, # 10 Declaration (Supplemental) of Donald Powers, # 11 Declaration (Supplemental) of John Veschi)(Budwin, Joshua) (Filed on 5/30/2014)

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EXHIBIT 38

Dealtalk: Google bid pi for Nortel patents and lost | Reuters

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Dealtalk: Google bid "pi" for Nortel
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People walk past a logo next to the main entrance of the Google building in Zurich March 9, 2011.
CREDIT: REUTERS/ARND WIEGMANN

RELATED NEWS

(Reuters) - At the auction for Nortel Networks' wireless patents

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in $4.5 billion Nortel sale

this week, Google's bids were mystifying, such as $1,902,160,540

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and $2,614,972,128.
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.

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"It became clear that they were bidding with the distance between

Pricey Nortel IP shows fear
of Google’s Android

mathematical constant, and then when it got to $3 billion, they

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Tech »
Deals »
Global Deals Review: 2011
Q3 »
Global Deals Review: 2011
Q2 »

the earth and the sun. One was the sum of a famous
bid pi," the source said, adding the bid was $3.14159 billion.

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"Either they were supremely confident or they were bored."
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It was not clear what strategy Google was employing, whether it
wanted to confuse rival bidders, intimidate them, or simply
express the irreverence that is part and parcel of its corporate

RECOMMENDED VIDEO

http://www.reuters.com/article/2011/07/02/us-dealtalk-nortel-google-idUSTRE76104L201... 5/29/2014

Dealtalk: Google bid pi for Nortel patents and lost | Reuters

Global Deals Review »

persona. Whatever its reasons, Google's shenanigans did not

Inflows Outflows »

Page 2 of 4

work.

Media »

A group of six companies -- Apple, Microsoft, RIM, EMC,
Ericsson and Sony -- won the auction of 6,000 Nortel patents and patent applications with a
$4.5 billion bid.

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The final figure was three times the amount expected by some analysts -- a sign of the
lengths to which Google's rivals were willing to go to get their hands on the treasure trove of
wireless technology, and thwart the Internet powerhouse's mobile ambitions.
Google had been expected to emerge victorious after it set a $900 million stalking horse bid
in April. But the auction that started on Monday and saw 20 rounds of bids over four long
days ultimately hit a price that became too much even for Google, the sources said.
FINANCIAL COMMENTARIES AND GUIDES

The Internet company might have had $36.7 billion in cash as of March 31, but it was only
willing to go up to $4 billion for these patents, one person said.

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telecoms company's patents -- Apple, Intel, Google, a consortium of Ericsson, RIM,
Microsoft, Sony and EMC, and a group led by patent risk solutions provider RPX, the
sources said.
Intel started the bidding around 9 am on Monday with a $1.5 billion bid, one source said.

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The RPX-led consortium, which included Chinese firm Huawei, dropped out after the first
round of the auction held at the offices of law firm Cleary Gottlieb Steen & Hamilton LLP.

15 year fixed mortgage rates in

The consortium remained on the sidelines looking to partner with someone else but never

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did, the source said.
"It did become clear to us very quickly that this was something that a bunch of big
companies with humongous balance sheets had decided was strategic for them," RPX Chief
Executive John Amster said. "Clearly at a price at this level it had to be strategic, and they
could afford that."
The auction tested the limits of even the giants, and it took behind-the-scenes maneuvering
and a series of alignments for a winner to emerge.

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FAST AND FURIOUS
On Tuesday night, the Ericsson consortium stopped bidding, and started looking for a
partner, which it found in Apple, the source said.
"When people drop out, you try to partner people," another source said. "It is pretty
common in auctions because you are trying to get together people who have reached their
individual limits and they still have interest in the assets."
By Wednesday, Intel dropped out as well -- a move that was followed by heated negotiations
over the next 24 hours as the two remaining parties both tried to court the chip giant to join
their side. Intel chose Google, one source said.
The field narrowed to two -- the Apple consortium called "Rockstar," and the Google
bidding vehicle named "Ranger", the sources said.
"Then it was fast and furious $100 million allotments until they got to $3 billion, at which
point Google asked for permission to bid more," a source said. "They bid through $4 billion
and tapped out."

http://www.reuters.com/article/2011/07/02/us-dealtalk-nortel-google-idUSTRE76104L201... 5/29/2014

Dealtalk: Google bid pi for Nortel patents and lost | Reuters

Page 3 of 4

Google declined to comment for this article, but called the auction results "disappointing."
Lazard Ltd advised Nortel in the deal, while Jefferies advised its creditors. Akin Gump
Strauss Hauer & Feld LLP was legal adviser to Nortel's creditors, while Cleary Gottlieb
advised the company.
(Additional reporting by Tiffany Wu in New York and Alastair Sharp in Toronto; Writing by
Paritosh Bansal, editing by Bernard Orr)
FILED UNDER: TECH DEALS GLOBAL DEALS REVIEW: 2011 Q3 GLOBAL DEALS REVIEW: 2011 Q2

GLOBAL DEALS REVIEW INFLOWS OUTFLOWS MEDIA
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Comments (23)
katiepea wrote:
hmm no i’d say it worked brilliantly, they did the same thing when they were bidding against microsoft for
skype, google never wanted skype, they just wanted microsoft to think they did, what google is offering
blows skype away, google is just having fun with people trying to play catch up to them, there is not
method other than humor here.
Jul 01, 2011 10:08pm EDT -- Report as abuse

kthor wrote:

http://www.reuters.com/article/2011/07/02/us-dealtalk-nortel-google-idUSTRE76104L201... 5/29/2014

Dealtalk: Google bid pi for Nortel patents and lost | Reuters

Page 4 of 4

strategically google won and made the winning bidder pay more than $4 billion for tech that’s probably not
worth it. they are forcing competitors to spend money on worthless techs as they are eyeing other
takeovers in the future but not before they make rivals spend the money 1st. good call G
Jul 02, 2011 1:21am EDT -- Report as abuse

jabberwolf wrote:
I think they were being cute.
But it doesnt bode well for engineers to pretend they know law.
Just as it isnt a bright idea for lawyers to pretend they know physics.
A genius in one field is not a genius in another by osmosis or entitlement. This is why some of the
brightest people in the world can be so gawd awfully stupid. Google’s shown this by example these past
years.
They did so again with the loss of the recent bid.
Jul 02, 2011 2:12am EDT -- Report as abuse

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