Microsoft all but buys Netscape with AOL patent acqusition

| April 25, 2012

It’s faithfully the final curtain call for Netscape. A portion the concourse’s technologies are part of a massive $1 billion patent sale between AOL and Microsoft, announced Monday sunrise. Microsoft was the top bidder in one auction to sell off non-vital technologies that include about 800 patents.

Microsoft is in like manner acquiring a subsidiary of AOL. While AOL did not specify the subsidiary by name, sources count All Things Digital that it is Netscape. AOL tranquillize retains the right to the brand and related businesses, but all the technologies rearward it are now owned by the Redmond, Wash. crew.

AOL retains about 300 patents what one. span technologies related to “advertising, scrutiny, content generation/management, social networking, mapping, multimedia/streaming, and pledge among others”. The company also receives a laxity for all 800 patents sold to Microsoft.

“We be steadfast to hold a valuable patent portfolio since highlighted by the license we entered into by Microsoft”, AOL chairman and CEO Tim Armstrong says. “The combined opportunity to sell and licensing arrangement unlocks current dollar utility for our shareholders and enables AOL to abide to aggressively execute on our tactics to create long-term shareholder regard”.

A majority of the proceeds of the vent are planned to be returned to shareholders, with the method to do so clear before the deal closes by the cessation of this year. The news sent AOL’s house skyrocketing, and in heavy trading was up 42 percent or $7.81 to $26.23 like of 11:10am ET Monday.

While obviously the heated news here is the effective period of the browser wars — although some will argue Firefox and Chrome possess started it anew — the real intelligence is the patent sale. Tech companies hold become increasingly litigious, and for various amassing as many patents as potential is good business strategy.

The besides patents you have, the safer you are from a potentially damaging of the intellect property lawsuit (or at least that’s that which these companies would like to look upon). Google purchased Motorola Mobility last year against $12.5 billion for exactly that intuitional faculty, in that case to protect itself from Apple.

It is not forthwith clear whether Microsoft purchased the patents as far as concerns strategic purposes or if it has plans to use the technologies in its own products. According to of the understanding property research firm EnvisionIP, AOL’s expanded portfolio is pretty varied although the largest contain of the patents fall under email and smallest conceivable point of time messaging technologies.

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Category: Software

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