Facebook Spent $83 Million for IBM Patent Acquisition

A couple of news appeared today saying that the social network giant, Facebook, spent aroun $550 million to acquire 650 patents held by Microsoft. The purchase came after what appeared to be and even larger acquisition of IBM for 750 patents for an undisclosed amount.

It appears that the IBM patents that Facebook bought are not really important to the social network giant as the ones once held by AOL that Facebook purchased from Microsoft today.

In the amended S-1 of Facebook, which it filed with the Security and Exchange Commission today, the company stated that they spent an amount reaching $83 million for patent acquisitions in the first quarter. The updated S-1 covers the deal that it made with Microsoft today but did not cover the deal made with IBM, which occured on March 22.

The price varies in every patent, as what experts says, but they also justified that the amount would much be higher that $83 million – which appears to almost $111,000 per patent. The patents that Facebook acquired from IBM covers a large range of networking and software technology.

Facebook, which only had 56 patents last year, continues to be building up its intellectual property collection before its first public offering. It started purchasing patents after Yahoo filed a case on March claiming that the social network company infringed up to 10 patents. There were rumours that Facebook would probably countersue then settle, or maybe even purchase a piece Yahoo’s patent profile to get rid of the problem right away.

Everything disclosed it based on the S-1 information from the deal between Facebook and Microsoft. Facebook filed almost 550 patents and owns 1,424 patents.