We see today’s announcement as a validation of our case against Facebook,” a Yahoo spokeswoman said in an emailed statement. “Nothing about today’s action changes the fact that Facebook continues to infringe our patents. Facebook countersued Yahoo in April, accusing Yahoo of infringing 10 of Facebook’s patents. Yahoo sued Facebook earlier this year, claiming that Facebook had infringed 10 Yahoo patents, including several covering online advertising technology. In March, it acquired 750 patents from International Business Machines Corp.įacebook’s deal with Microsoft comes as the world’s No.1 social networking company prepares for an initial public offering that could value it at up to $100 billion and as it battles Yahoo Inc in court. The purchase marks Facebook’s second recent move to bolster its patent portfolio, which consisted of 56 issued patents and 503 applications as of December 31, according to a filing with the U.S.
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Microsoft will retain a license to the patents and applications it is selling to Facebook under the terms of the deal. Microsoft bought the AOL patent portfolio knowing that it was an all-or-nothing deal and always planned to sell a large number of them while retaining licenses to them, a source close to the Facebook deal said. The auction included technology rights from AOL’s current and former businesses, ranging from Web browser Netscape and instant messaging service ICQ to MapQuest and early online service CompuServe, the source said on condition of anonymity because the information was not public. Valuing patents is a complex process, and it was not immediately clear whether Microsoft profited from the deal with Facebook.īrad Smith, Microsoft’s general counsel, said in a statement on Monday that the Facebook deal allows it “to recoup over half of our costs while achieving our goals from the AOL auction.”įacebook was also a participant in the AOL auction, a source said at the time. Microsoft trumped Amazon, eBay and other tech companies this month with its more than $1 billion purchase of most of AOL’s patent trove. The patents, which Microsoft bought this year from AOL, cover a broad spectrum of technology, including mobile services, cell phone handsets, advertising and e-commerce, a source familiar with the situation said. Patents have become a top priority for technology companies as many of them, including Google Inc and Apple Inc, become embroiled in patent-related lawsuits. It comes shortly before Facebook is expected to have the largest initial public offering in Silicon Valley history. The deal gives social network Facebook 650 patents and patent applications and license to another 275 patents and applications.
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