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Monday, April 23,2012

Facebook Buys AOL Patents From Microsoft For $550 Million In Cash

Although Facebook didn’t buy AOL’s patent portfolio the other week — it was gobbled up by Microsoft for $1 billion — it’s going to get a big serving of those patents anyway: Microsoft and Facebook today announced that Microsoft would be selling to Facebook 650 of the 925 patents that it bought  from AOL to Facebook for $550 million in cash.

It will also get a license for the remaining 275 patents that Microsoft bought from the AOL portfolio, which Microsoft will continue to own. On top of this, Microsoft also has a license for the 300 patents that AOL still owns; but at this point, Facebook will not have a license for those patents still owned by AOL.

The deal gives Facebook a much stronger position in the world of patents, where it had been weak up to now and has been facing lawsuits, most notably from Yahoo, over infringement. It now appears to own 1,460 patents (750 from IBM, these 650 from Microsoft/AOL, 60 of its own) plus applications for more, plus any it may be getting through acquisitions.


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