Monday, April 23, 2012

Microsoft, Facebook announce $550 million patent deal

Patents are the hot trade in town these days and everyone is just jumping in to grab a few of them. The latest firms to join the mix are Microsoft and Facebook.

According to a press note issued today, Facebook will be paying $550 million to Microsoft to acquire a portion of patents that Redmond is getting from AOL. Facebook will be receive the ownership of around 650 patents and applications; however Microsoft will still have the licence to these patents.

"Today's agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction," said Brad Smith, executive vice president and general counsel, Microsoft.

"Today's agreement with Microsoft represents an important acquisition for Facebook," said Ted Ullyot, general counsel, Facebook.

To remind you, Microsoft paid $1 billion earlier this month to acquire approximately 925 U.S. patents plus a license to 300 additional patents that are not for sale from AOL. After today's deal, Microsoft will retain ownership of approximately 275 AOL patents along with license to 950 patents.