Facebook Enters into $550 Million Patent Deal with Microsoft

Facebook and Microsoft corporation have announced a new patent deal 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 will in return pay Microsoft the sum total of $550 million in cash.

Facebook will obtain ownership of approximately 650 AOL patents and patent applications, plus a license to another 275 AOL patents and applications that Microsoft will purchase and own as a result of this deal

“Today’s agreement with Microsoft represents an important acquisition for 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 ,” said Ted Ullyot, general counsel, Facebook, announcing the new partnership.

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

Facebook was founded in 2004, it is currently the world’s largest social networking website with 850 million active users, Microsoft was founded in 1975, it is the worldwide leader in software, services and solutions

[Source: Facebook]

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