Google has been holding talks with wireless developer and owner of around 8,800 patents InterDigital Inc, The Wall Street Journal yesterday reported, citing people familiar with the matter.

The Internet giant, which has already made 12 acquisitions this year, is trying to acquire InterDigital, after last month having lost out buying Nortel Networks Corp's 6,000 patents to a consortium led by Apple, Microsoft and RIM.

Pennsylvania-based InterDigital has approximately 8,800 US and foreign patents in its portfolio. It also has almost 10,000 patent applications in process around the world.

InterDigital had said this week that it was evaluating strategic alternatives, including a possible sale of the company or of its patents.

''Over the past year we have seen the value of intellectual property rise substantially as major players in the mobile industry increasingly understand the strategic and economic value of this type of asset. As a result, the board believes it is an appropriate time to explore potential strategic options that may enhance shareholder value," said Terry Clontz, chairman of InterDigital.

The company had retained Evercore Partners and Barclays Capital as its financial advisors to assist with the strategic review.

Google and Interdigital have been in touch in recent days but financial advisers for InterDigital will likely approach other technology companies as part of the auction, the paper said.

The Journal said that InterDigital expects to fetch a price that not only reflects the value of its patents, but the long-term recurring revenue from its licensing patents. InterDigital's current market value is around $3.1 billion.

InterDigital patents are mostly related to transmission of wireless data, cancellation of noise interference during phone calls and other technologies for use in mobile phones and networks.

Google, which owns the fast-growing Android operating system used in millions of mobile phones, has a thin portfolio of wireless and telecommunications patents. That makes the Internet search giant vulnerable to patent-infringement lawsuits, said the paper.

An acquisition of InterDigital's patents could help insulate Google's Android franchise from a growing number of lawsuits against mobile handset manufacturers such as Samsung Electronics, HTC Corp and Motorola, which use its software to power their smartphones and tablet PC's.