Twitter paid $36 million to IBM for 900 patents as reported on the papers filed with the Securities Exchange Commission. After a threat last November by IBM to sue the social network over three patents, twitter dished out the amount to avoid lawsuit. Though the patent exchange was announced earlier this year but the financial amount was not disclosed until the papers became publicly available.
According to the source, it is seen that Twitter holds nearly 1,000 U.S. patents with 100 more applications pending approval as of date.
Twitter reported that “Many companies in these industries, including many of our competitors, have substantially larger patent and intellectual property portfolios than we do, which could make us a target for litigation as we may not be able to assert counterclaims against parties that sue us for patent, or other intellectual property infringement.”
IBM threatened with legal action late last year over three patents which were similar to their own. Some major giants have also come across the situation that Apple and Microsoft are investors in one patent company that has sued Google.