NEW YORK ( TheStreet) - Microsoft ( MSFT - Get Report) is teaming up with Facebook over the patents Microsoft bought from AOL ( AOL) recently.

Facebook is purchasing a portion of the patent portfolio for $550 million in cash, according to the press release. The social networking giant will own approximately 650 of the 925 patents Microsoft acquired from AOL, plus a license to the AOL patents and applications that Microsoft will purchase and own.

"Today's agreement with Facebook enables us to recoup over half of our costs while achieving our goals from the AOL auction," said Brad Smith, executive vice president and general counsel, Microsoft. "As we said earlier this month, we had submitted the winning AOL bid in order to obtain a durable license to the full AOL portfolio and ownership of certain patents that complement our existing portfolio."

"Today's agreement with Microsoft represents an important acquisition for Facebook," said Ted Ullyot, general counsel, Facebook. "This is another significant step in our ongoing process of building an intellectual property portfolio to protect Facebook's interests over the long term."

Microsoft shares are lower in Monday trading, off 0.96% to $32.11.

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-- Written by Chris Ciaccia in New York

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