Facebook buys 750 IBM patents

Facebook has acquired hundreds of patents from International Business Machines Corp as the social networking company attempts to bolster its intellectual property portfolio in the wake of a lawsuit filed by Yahoo

By - March 23, 2012
facebook_icon_logo

Facebook has acquired hundreds of patents from International Business Machines Corp as the social networking company attempts to bolster its intellectual property portfolio in the wake of a lawsuit filed by Yahoo.

The 750 patents from IBM cover a broad range of technology, ranging from search to semiconductors, according to a person familiar with the matter. A Facebook spokeswoman said the company had no comment, and an IBM representative could not immediately be reached.

Yahoo sued Facebook earlier this month, claiming that Facebook infringed 10 patents, including several that cover online advertising technology.

A classic defense for companies targeted with patent claims is to threaten a countersuit using its own patents. But Yahoo possesses far more patents than Facebook. Before the IBM transaction, Yahoo had over 3,300 patents and published patent applications, according to a U.S. government database.

Facebook had 56 issued patents and 503 applications as of December 31, the company said in a recent filing with the U.S. Securities and Exchange Commission.

Facebook, the world’s largest Internet social networking service, is preparing for an initial public offering that could value the company at up to $100 billion.

It is unclear how much Facebook paid for the IBM patents, but tech companies seeking to build their portfolios have pushed intellectual property prices higher. Google agreed to buy Motorola Mobility last summer for $12.5 billion, and said Motorola’s patents were a prime attraction.

That deal came after Nortel Networks Corp sold about 6,000 patents to an Apple Inc-led consortium for $4.5 billion, after Google bowed out of the bidding.

IBM’s transaction with Facebook was first reported by Bloomberg.

Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Will you give Microsoft Edge a trial run when it releases in full?

View Results

Loading ... Loading ...

More News

Load shedding alert: Eskom

Stage 1 load shedding Eskom

Eskom has issued a warning that load shedding will be implemented on 4 May.

The year that changed South Africa’s Internet market

South Africa keyboard

Many of South Africa’s top Internet businesses were launched in a one year period during the height of the Dot-Com Boom

Apple Watch sold in SA – for a price

Apple Watch

A bidorbuy user has purchased an Apple Watch Sport and Apple Watch for a “premium price”.

Telkom SmartOffice data deals launched

Telkom Futurehood

Telkom has launched new DSL, fibre, and LTE packages aimed at businesses.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
X
bool(true)