1 June 2012Patents

AOL and Microsoft agree billion dollar patent deal

As technology companies continue battling to bolster their IP rights, Microsoft has paid AOL around $1 billion for more than 800 patents and related applications.

Under the agreement AOL will license more than 300 other patents and applications covering its “core and strategic technologies”, according to a statement. Although the company has not disclosed exactly what they cover, it owns patents for advertising, content management, social networking, multimedia and online chat technologies.

“This is a valuable portfolio that we have been following for years and analysing in detail for several months,” said Brad Smith, Microsoft’s general counsel.

The deal represents the latest attempt by a technology company to seize the upper hand in the war over patents. In July 2011, a consortium including Microsoft and Research In Motion beat Google to 6,000 patents owned by telecoms equipment company Nortel. The following month, Google hit back by acquiring Motorola Mobility for its patents—a deal worth $12.5 billion.

Meanwhile, Samsung and Apple are battling in court over patent rights for the iPhone 4S, iPad and Samsung’s Galaxy Nexus—showing how technology multinationals are increasingly desperate to protect their IP.

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