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

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.

Tags: Active, Apple, facebook, Google, Motorola, Nortel, Yahoo!

Free Email Newsletter:
Subscribe

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Will you subscribe to Netflix when it launches in South Africa?

View Results

Loading ... Loading ...

More News

South African solar power geyser initiative change

Eskom

Eskom’s rebate project failed to reach its target for the installation of solar systems, and the energy department will now run the initiative

Cell C in R1.2 billion investor write-off: report

Cell C

Saudi Telecom has written off a R1.2 billion investment in Oger Telecom, attributing the impairment to its investment in Cell C, according to a report by the City Press.

Eskom blackout panic overstated: report

Eskom Darkness

Eskom CEO Tshediso Matona’s comments about a possible total collapse of the power grid were “misinterpreted” due to his poor grammar, according to the Sunday Times.

Your life is how Facebook makes money

Facebook eye reflection

The free service Facebook offers to its 1.2 billion users is free because of the advertising revenue the site generates from the time that users spend on the site

Free MyBroadband Newsletter:
Subscribe
X
bool(true)