Twitter paid $36 million over IBM patent threat

Twitter logoTwitter's first annual financial results were revealed on Thursday. Buried deep in the document is the price it paid IBM after it was confronted with a patent infringement threat by Big Blue: $36 million. Bloomberg was first to highlight the price tag.

IBM sent a letter to Twitter in November saying it was infringing at least three IBM patents. That resulted in a negotiation that ended up with Twitter getting a license to IBM's patents, acquiring about 900 of them for itself, and (we now know) paying $36 million.

The patent exchange was spun in positive terms, as something that would boost Twitter's intellectual property portfolio to help it defend itself from other threats against competitors. The exchange does do that, but this "deal" wouldn't have happened but at the end of IBM's massive patent gun, which was pointed at Twitter right before its IPO.

IBM is the largest US patent-holder. At one point, the company was receiving $2 billion annually from patent licensing.

The $36 million payment represents more than 5 percent of Twitter's 2013 revenue, which was just under $665 million. Overall, the company experienced a $34.3 million net loss for the year—so it might have been in the black, if it hadn't been for the IBM patent payout.

The three IBM patents asserted in November were: US Patent No. 6,957,224, "efficient retrieval of uniform resource locators," No. 7,072,849, "Method for presenting advertising in an interactive service," and No. 7,099,862, "programmatic discovery of common contacts."

Source: Ars Technica

Tags: IBM, Twitter

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
You can use a security key instead of having a code sent to your phone
 
Adobe says that the AI can now achieve the intended result in seconds
 
A new security protocol replacing the aging WPA2
 
Download and install at your own risk, of course
 
More iPhone parts likely to be produced by Samsung
 
Starting on Friday, video views on YouTube will start to be counted by the Official Charts Company
 
LG has already announced two new V-series members in 2018
 
The method is blocked and the hack doesn’t work, it adds
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
 123456
78910111213
14151617181920
21222324252627
28293031   




Poll

Do you use microSD card with your phone?
or leave your own version in comments (11)