Print 21 comment(s) - last by WalksTheWalk.. on Apr 10 at 1:02 PM

AOL maintains rights to use patents after sale

AOL announced today that it has signed a deal to sell more than 800 of its patents o Microsoft. Microsoft is also licensing 300 additional patents and patent applications from AOL. The deal will cost Microsoft $1.056 billion in cash and the 300 patents that Microsoft is licensing are on a non-exclusive basis.
The patents that AOL is holding onto, but licensed to Microsoft, include some that span core strategic technology such as advertising, search, content generation management, social networking, mapping, multimedia and streaming, and security among others. AOL also maintains the license to use technology covered in patents that it sold to Microsoft.
“The agreement with Microsoft represents the culmination of a robust auction process for our patent portfolio,” said Tim Armstrong, AOL’s Chairman and CEO. “We continue to hold a valuable patent portfolio as highlighted by the license we entered into with Microsoft. The combined sale and licensing arrangement unlocks current dollar value for our shareholders and enables AOL to continue to aggressively execute on our strategy to create long-term shareholder value.”
AOL points out the sale of patents included the sale of stock in AOL subsidiary company and that it expects to record a capital loss for tax purposes as a result of the sale. AOL also noted that it plans to use about $40 million in existing deferred tax assets offset any ordinary income taxes resulting from the licensing of its patent portfolio. That $40 million is about 20% of AOL's total deferred tax assets.
“This is a valuable portfolio that we have been following for years and analyzing in detail for several months,” said Brad Smith, General Counsel and Executive Vice President, Legal and Corporate Affairs, Microsoft. “AOL ran a competitive auction and by participating, Microsoft was able to achieve our two primary goals: obtaining a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio.”
AOL and Microsoft expect the transaction to be completed by the end of 2012. The purchase is contingent on typical conditions and regulatory approvals.

Source: AOL

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RE: What Does AOL Even Do?
By Samus on 4/9/2012 11:32:51 AM , Rating: 5
I still can't believe the cost of this patent war Steve Jobs started.

Even in death, the man is holding back innovation.

RE: What Does AOL Even Do?
By tayb on 4/9/2012 11:43:46 AM , Rating: 1
LOL. Steve Jobs created a patent war?? Who knew. I was under the assumption this crap has been going on for the past 15 years.

I seem to remember some patent troll suing Microsoft and Sony for infringing on his patent for a vibrating controller. Well before the iPhone was even a twinkle in Steves eye.

RE: What Does AOL Even Do?
By jeepga on 4/9/2012 11:57:27 AM , Rating: 3
Patent lawsuits have been occuring since patent law was created. Steve Jobs brought this to a new level.

RE: What Does AOL Even Do?
By tayb on 4/9/12, Rating: -1
RE: What Does AOL Even Do?
By Digimonkey on 4/9/2012 1:54:27 PM , Rating: 2
Less than a year ago, and yes.

RE: What Does AOL Even Do?
By tayb on 4/9/12, Rating: -1
RE: What Does AOL Even Do?
By Digimonkey on 4/9/2012 4:48:17 PM , Rating: 4
What? Wars have allies. Haven't you noticed the lack of conflict between Microsoft and Apple for quite awhile now? They have a common enemy.

RE: What Does AOL Even Do?
By Omega215D on 4/9/2012 11:48:27 PM , Rating: 2
despite the common.enemy they both have so many patents it would be a stalemate or a pyrrhic victory for one of them. Not to mention the fanaticism of Apple diehard Apple users.

RE: What Does AOL Even Do?
By Theoz on 4/9/2012 1:12:48 PM , Rating: 2
You give him far too much credit. This stuff has been going on forever.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone

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