US based Microsoft and Facebook has confirmed a $550 million patent agreement in which the Facebook will acquire a portion of the patent holding Microsoft recently purchased from Aol. Facebook will take possession of roughly 650 former Aol patents, and it will license the remaining patents owned by the software giant. Microsoft will retain ownership of approximately 275 Aol patents and will license the additional 650 Aol patents to be transferred to Facebook. Sources close to the deal said that Microsoft and Facebook wanted to partner on the purchase of the AOL patents all along, but the rules of that auction wouldn’t allow it.
“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.”
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