Twitter acquires 900 patents from (IBM), ends patent infringement dispute

Online social networking and microblogging site Twitter has acquired more than 900 patents from IBM, for an undisclosed sum, to end patent disputes.

The deal done  last month but announced yesterday, also ends dispute between both companies on patent infringement after IBM last year raised issues with Twitter on possible infringement on at least three of its patents.

IBM and Twitter said in a joint release that they have also entered into a patent cross-license agreement, but did not disclose the financial terms of the deal.

"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," said Ben Lee, legal director for Twitter.

''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,'' said Ken King, general manager of intellectual property for IBM.

Twitter had disclosed in a regulatory filing prior to its initial public offering in November last year that it had nine patents and 95 pending applications.

The deal with IBM would be its first acquisition of patents apart from those it received buying other companies.

IBM has received the highest number of patents in the US for 21 straight years, and has made deals with technology firms like Facebook, Google and others.

Many technology companies are now using their patents as an asset to generate revenue, while others use it to block competition.

IBM licences or sells patents to generating additional revenue, while Apple uses its patents to discourage competition; it has running patent la thatcompete with Apple's iPhone and iPad.