GoPro shares, which have been battered this week and in recent months, added 6.2% in after-hours trading to $10.58 a share. Microsoft shares ticked up 0.2%.
The deal with Microsoft will cover certain file-storage and system technologies.
Nick Psyhogeos, president of Microsoft’s patent business, said the company is seeing strong demand from the wearable technologies it has already licensed. Microsoft didn’t provide further detail on the agreement.
GoPro’s shares ended the week down 13% after it said sales would decline this year and announced the departure of a top executive. The stock has dropped 46% in the past month and 82% in the past year.
GoPro has been hurt by concerns that the market for its wearable cameras is drying up, while it is also facing competition from overseas manufacturers and smartphone technology. The company is exploring a number of new revenue streams, including a drone that will be released later this year and licensing content shot on its cameras to media companies.