Patent Wars!

Why tech titans are fighting over intellectual property

There's an arms race gripping the tech world, and the weapons of choice are patents. Microsoft is spending more than $1 billion to buy 800 of them from AOL, a move that underscores just how fierce--and lucrative--the idea wars have become, especially as more Web activity shifts from PCs to smart phones and tablets. Thanks in part to its Exchange e-mail patents, for example, Microsoft gets a cut from roughly half of all sales of phones that run Google's Android operating system. Google, in turn, is spending $12.5 billion to acquire Motorola Mobility, whose patents include mobile devices and wireless technologies.

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