Twitter buys 900 patents from IBM to end legal spat
Latest patent transfer sees Big Blue benefit from its innovation strength
Twitter has purchased more than 900 patents from IBM in a deal that appears to mark the end of a potential legal spat between the two firms.
Twitter revealed last November that it was embroiled in a legal spat with IBM as part of a pre-stock market flotation document. It explained the action related to technology including "presenting advertising in an interactive service", URL shortening and contact finding, which are all key to Twitter's services.
Now, though, the two firms have announced a deal that will see 900 patents turned over to Twitter and the two firms enter into a cross-licensing agreement. Financial details of the deal were not disclosed.
Legal director for Twitter Benjamin Lee said that the deal would help the micro-blogging site focus on innovation around its platform.
"This acquisition of patents from IBM and licensing agreement provides us with greater intellectual property protection and gives us freedom of action to innovate on behalf of all those who use our service," he said.
Ken King, general manager of Intellectual Property for IBM, said the deal underlined the importance to IBM of patents and innovation, especially after it beat Samsung and Microsoft to retain its patent innovation crown for the 21st year.
"We are pleased to reach this agreement with Twitter because it illustrates the value of patented IBM inventions and demonstrates our commitment to licensing access to our broad patent portfolio. We look forward to a productive relationship with Twitter in the future," he said.
IBM has previously sold patents to other leading firms such as Google and Facebook, underlining its strength in this important area of the tech market.
The deal is the latest in the tech market around patents after Qualcomm announced it had picked up 2,400 patents from HP that included some of the technology it acquired from its failed buy of Palm.