IBM 'Scares' Twitter (TWTR) into Large Patent Purchase, Settlement

Twitter (NYSE: TWTR) is active early Friday following disclosure that the company acquired a solid amount of patents from International Business Machines (NYSE: IBM).

According to a 10-K filing made Thursday night, Twitter paid IBM around $36 million to acquire 900 patents. The announcement, made last January, didn't include financial details of the deal. The move followed IBM sending a letter to Twitter last year, informing the company that it might be in violation of at least three patents.

With the 10-K, Twitter noted that its troubles are far from over. The company stated, We presently are involved in a number of intellectual property lawsuits, and as we face increasing competition and gain an increasingly high profile, we expect the number of patent and other intellectual property claims against us to grow.

Following the purchase, Twitter has about 956 patents and 100 filed applications in the U.S. Shares are up 0.6 percent early.

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