SAN FRANCISCO -- Microsoft, which just bought patents from AOL for more than $1 billion, is now selling most of them to Facebook for $550 million.
The two companies said Monday that Facebook is buying about 650 of the 925 patents and patent applications. Facebook will get a license to use the rest of the patents. Microsoft will also get a license to use the patents that Facebook is buying.
“Today’s agreement with Microsoft represents an important acquisition for Facebook,” said Ted Ullyot, Facebook's general counsel, in a written statement. “This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook’s interests over the long term.”
Facebook is loading up its intellectual property arsenal as it prepares for an initial public stock offering and fights a lawsuit brought by Yahoo last month. Facebook is countersuing.