• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

Microsoft, Facebook Announce Patent Agreement

Joined
Dec 6, 2011
Messages
4,785 (2.14/day)
Likes
1,187
Location
Still on the East Side
#1
Microsoft Corp. and Facebook announced today a definitive agreement under which Microsoft will assign to Facebook the right to purchase a portion of the patent portfolio it recently agreed to acquire from AOL Inc. Facebook has agreed to purchase this portion for $550 million in cash.

In the initial AOL auction, Microsoft secured the ability to own or assign approximately 925 U.S. patents and patent applications plus a license to AOL's remaining patent portfolio, which contains approximately 300 additional patents that were not for sale. As a result of today's agreement, Facebook will obtain ownership of approximately 650 AOL patents and patent applications, plus a license to the AOL patents and applications that Microsoft will purchase and own.



Upon closing of this transaction with Facebook, Microsoft will retain ownership of approximately 275 AOL patents and applications; a license to the approximately 650 AOL patents and applications that will now be owned by Facebook; and a license to approximately 300 patents that AOL did not sell in its auction.

"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. "As we said earlier this month, we had submitted the winning AOL bid in order to obtain a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio."

"Today's agreement with Microsoft represents an important acquisition for Facebook," said Ted Ullyot, general counsel, Facebook. "This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook's interests over the long term." The parties are evaluating the accounting treatment for these transactions. These transactions are also subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
 
Joined
Dec 6, 2005
Messages
9,975 (2.25/day)
Likes
3,926
Location
Manchester, NH
System Name Working on it ;)
Processor I7-4790K
Motherboard MSI Z97 U3 Plus
Cooling Be Quiet Pure Rock Air
Memory 16GB 4x4 G.Skill CAS9 2133 Sniper
Video Card(s) Power Color RD Vega 64 Reference
Storage Samsung EVO 500GB / 8 Different WDs / NAS with 2x2Tb WD Black
Display(s) 34" LG 34CB88-P 21:9 Curved UltraWide QHD (3440*1440)
Case Rosewill Challenger
Audio Device(s) Onboard + HD HDMI
Power Supply Corsair HX750 (love it)
Mouse Logitech G5
Keyboard Logitech G710 Blue / G610 Orion Red
Software Win 7 Pro
#2
Well... that is an interesting twist. They are selling the patents to FB, but retain the rights to them... for $550M! Sweet deal.

Are they going to sell the rest to APPL? :laugh: