Facebook Buys 750 IBM Patents
According to a source with Bloomberg, Facebook has acquired 750 patents from IBM. The patents include software and networking technologies. Facebook is currently facing a patent lawsuit that was filed against them by Yahoo! This acquisition would strengthen their portfolio of at least 56 issued patents and 503 filed U.S. patent applications.
Yahoo!’s lawsuit against Facebook involves patents that include Internet privacy, ads, and information sharing. Yahoo! is asking for an order that bars Facebook from infringing upon 10 patents and is seeking triple damages.
IBM is not the only company that Facebook has acquired patents from. Facebook also bought patents from Friendster.com and Hewlett-Packard.
Facebook filed for an IPO last month and revenues for the company last year was nearly $4 billion. Earlier this month, they secured a credit line of $5 billion.
Facebook expects patent lawsuits against them to only grow. “We expect the number of patent and other intellectual property claims against us to grow,” said Facebook in a document that was written on February 1st. “We may introduce new products, including in areas where we currently do not compete, which could increase our exposure to patent and other intellectual property claims.”
Facebook spent $51 million on acquired patents in 2011, which is up from $33 million in 2010. For the last 19 years, IBM has been the top U.S. company on the list of most patents received with 6,180 patents last year alone.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry