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Nokia has sold around 2,000 patents to Canadian IP firm MOSAID Technologies in an apparent bid to cash in on its unrivalled wireless-related intellectual property. Ottawa-based MOSAID said yesterday it had acquired the patents via a buyout of a Luxembourg-based firm called Core Wireless Licensing, which holds the Nokia patents.

Approximately 1,200 of the patents and applications are deemed to be “essential” to the 2G (GSM), 3G (WCDMA) and 4G (LTE) standards. The rest of the portfolio consists of approximately 800 “wireless implementation” patents.

The value of the deal – which has been in the pipeline since March this year – is not known, but MOSAID said that revenues from “licensing, enforcing and monetising” the portfolio will surpass the company's total revenues since its formation in 1975. It will fund the acquisition through royalties from future licensing and enforcement revenues, while Nokia (via Core Wireless) will retain approximately one-third of gross royalties.

"This is a transformative event for MOSAID which will drive significant revenue growth and shareholder value over the next decade, and will create exciting new opportunities for MOSAID as one of the world's premier licensing organisations," said John Lindgren, MOSAID’s president and CEO.

However, under the terms of the deal, the portfolio is not transferable if MOSAID were to be acquired. This is significant as MOSAID is currently reviewing a hostile takeover bid from rival IP firm Wi-Lan. If that deal were to go through, MOSAID would be required to transfer the patents to a third party for “nominal consideration.”

MOSAID is currently suing the US arms of HTC and Sony Ericsson over alleged infringement of four US patents used by mobile devices to implement the E-911 emergency standard.