Facebook acquired 750 patents in March from International Business Machines (IBM), adding intellectual property that may help it counter allegations of patent infringement, a person with knowledge of the transaction said.
The patents cover various technologies such as software and networking, said the person, who asked not to be identified because the deal hasn’t been made public. The acquisition would swell the size of Facebook’s portfolio, which includes at least 56 issued patents and 503 filed United States patent applications.
The Yahoo suit involves patents covering Internet privacy, advertising and information sharing. Sunnyvale, California-based Yahoo asked for an order barring Facebook from infringing the 10 patents. It’s seeking triple damages.
Facebook’s IBM deal could help assuage concerns that the company lacks the intellectual property it needs, Gill said. The social network filed for an initial public offering last month, increasing investor scrutiny of the business.
