Microsoft Buys AOL Patents Worth Over $1 Billion

April 10th, 2012 at 12:43 pm
 


Patents are considered as highly valued assets today by tech companies as it is largely being used to help them survive the competitive nature of the tech industry of late. Patents are being used as a weapon to either inflict or prevent damage to and from competitors. It has been the name of the game lately, especially among the tech industry leaders.

And it is no wonder nowadays why patents have become high value assets for companies. It has become a means for beleaguered tech companies who own them to obtain some much needed funds when the going gets tough. It is a move that some companies facing bankruptcy or tough times are taking in order to remain afloat. The recent company to go this route is AOL. It has recently sold a trove of its patents to Microsoft to the tune of $1 billion.

AOL has recently put around 800 of its patent portfolio up for sale. This trove of patents was placed on auction where interested bidders included software giant Microsoft, Amazon, Google, Facebook and eBay. Eventually, the patent trove was sold to Microsoft for a cool billion dollars. It was a surprising result, considering the price that Microsoft paid for the patent portfolio which included those that are related to search, advertising, e-commerce and mobile applications.

Microsoft, in buying the recent AOL trove of patents, may be using it as a weapon to protect itself against infringement lawsuits from other tech giants, which recently has used this method either to keep competitors at bay or prevent them from getting that necessary advantage. And most of the giants truly are trying to beef up their patent portfolio just for this. Google is on the verge of buying Motorola Mobility and its own trove of patents. A consortium of companies has recently bought the patents from the bankrupt Nortel Networks, of which Microsoft was also a part of.

 

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