AOL Strikes $1.1 Billion Patent Deal With Microsoft
Posted in: Miscellaneous at 10/04/2012 14:04
AOL agreed on Monday to sell a portfolio of over 800 patents, and license about 300 more, to Microsoft for $1.056 billion, amid an arms race within the technology industry over intellectual property.
Under the terms of the transaction, AOL will retain a license for the patents it is selling, while Microsoft will receive a nonexclusive license for the technologies AOL is retaining.
Microsoft's AOL Deal Intensifies Patent Wars
The global gold rush in technology patents gained speed on Monday when Microsoft agreed to pay more than $1 billion for 800 patents held by AOL.
The lofty price -- $1.3 million a patent -- reflects the crucial role that patents are increasingly playing in the business and legal strategies of the world's major technology companies, including Microsoft, Apple, Google, Samsung and HTC.
Microsoft buys and licenses AOL patents in $1bn deal
Microsoft is buying the majority of AOL's patents in a deal worth $1.06bn.
A statement said the agreement covers the intellectual property rights to more than 800 innovations.
Microsoft will also be granted licensing rights to about 300 patents that AOL is keeping.
It is the latest in a series of such deals as technology firms act to bolster their chances in related lawsuits.