AOL to sell patents to Microsoft in over $1B deal

AOL will continue to hold a significant patent portfolio of over 300 patents

By , IDG News Service |  IT Management

Tim Armstrong

Tim Armstrong, chairman and CEO of AOL, speaks during the 2011 Bloomberg Media Summit in New York.

REUTERS/Lucas Jackson

AOL has entered into a definitive agreement to sell over 800 of its patents and their related patent applications to Microsoft, it said Monday.

The sale of patents and a non-exclusive license to its retained patent portfolio will fetch the company over US$1 billion in cash, AOL said.

Ailing AOL has been trying to sell its patents to raise cash, and the deal with Microsoft reflects growing interest from technology companies to acquire patent portfolios both to counter and deter patent litigation.

Facebook for example acquired 750 patents from IBM last month, as the company battles Yahoo in court in a patent dispute.

After the sale, AOL will receive a license from Microsoft to the patents it has sold. It will also continue to hold over 300 patents and patent applications spanning core and strategic technologies, it said.

AOL did not disclose what were the patents it had sold, or in which technology areas. The deal was finalized after a competitive auction.

The transaction is expected to be completed by the end of this year, depending on regulatory approvals, including antitrust regulations.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Answers - Powered by ITworld

ITworld Answers helps you solve problems and share expertise. Ask a question or take a crack at answering the new questions below.

Ask a Question