Facebook has done a deal with Microsoft, buying $550 million in patents from the Redmond-based firm. Purchased initially from AOL earlier this month for the staggering amount of $1 billion, Facebook is now the proud owner of 650 patents.
The original agreement between Microsoft and AOL consisted of the acquisition of 925 US patents and applications, as well as a licence to the rest of AOL's patents (around 300 of them).
"Today's agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction," stated Microsoft general counsel Brad Smith. "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."
This is a clever move by the social network, after being sued by Yahoo over copyright infringement. Now, with the newly acquired patents, Facebook is in a position to countersue Yahoo.
"Today's agreement with Microsoft represents an important acquisition for Facebook," said Ted Ullyot, Facebook's general counsel. "This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook's interests over the long term."
Source: The Washington Post