Twitter Inc (TWTR) buys 900 patents from IBM and enters cross-license agreement
Twitter Inc (NYSE:TWTR) has announced that they have acquired over 900 patents from IBM. Twitter also entered a cross-licensing agreement with IBM. IBM previously filed a complaint against Twitter for patent infringement, which was reported in Twitter’s S-1 filing before their IPO last year.
IBM wanted to make some sort of settlement with Twitter, according to the document. Twitter was ready to defend themselves, but decided that the two companies should enter an agreement. This eventually led to Twitter’s acquisition of 900 IBM patents. In IBM’s lawsuit, they cited at least 3 patents that Twitter was allegedly infringing.
Twitter is not the only social media company that bought patents from IBM. Facebook bought 750 IBM patents in March 2012 before their IPO to defend themselves against Yahoo! IBM sold 1,000 patents to Google in 2010. The patents that Twitter acquired are related to social media content monitoring, social engagement, location based networking, etc.