Tomahawk, WI 03/10/2014 (Basicsmedia) – Twitter Inc (NASDAQ:TWTR)’s patent inventory has now swollen from 9 to 509 individual patents after the micro-blogging service took over 500 patents from International Business Machine Corps (NASDAQ:IBM) to rid of any possible litigation.

Wavering Financial Impacts

A 10-K filing of Twitter Inc (NASDAQ:TWTR) submitted to SEC yesterday, shows the micro-blogging company paid $36 million (5 percent of its FY 2013 revenues), to International Business Machine Corps (NASDAQ:IBM) for acquired patents. The patent acquisition was finalized in January this year however the consideration was not disclosed earlier. The payment disclosed in yesterday’s filing ate away the whole of the debut year’s profits ($34 million) from the micro-blogging company.

Twitter Inc (NASDAQ:TWTR) was informed during November 2013 by The International Business Machine Corps (NASDAQ:IBM) that it might be infringing at least three of the laters’ patents. Twitter immediately decided to ward of any chances of legal complications by acquiring all patents of IBM that could possibly have a use at its micro-blogging site.

Twitter Will Continue IP Acquisitions

The IBM-Twitter deal will not be the last of its kind from the Twitter Inc (NASDAQ:TWTR)’s side. The company’s stock was commoditized last year and after the initial public issue is an ever increasing pressure to stabilize its competitive profile. Yesterday filing by Twitter Inc (NASDAQ:TWTR) also read that the company expects the number of patents and other IP claims against it to grow”. The IP real-estate can help it counter legislative pressures and competition from new startups.

Social media and micro-blogging are the easiest entry points startups can use to gain a foothold in digital marketing even when operating at small scale. Intellectual property right for tech intensive companies are nowadays the best barrier to entry for small startups.

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