Activist hedge fund Starboard Value LP nominated a slate of five candidates to AOL Inc's board, saying discussions with the company in the past two months had not yielded desired results.

Starboard, which together with its affiliates owns 5.2 percent of AOL's stock, said it had been approached by several third parties who believes AOL's patent portfolio could produce over $1 billion of licensing income if properly monetized.

The hedge fund said AOL had valuable intellectual property, such as patents related to secure data transfers, e-commerce, and navigation, among others.

In December, Starboard reported a 4.5 percent stake in AOL and pushed for a meeting with the Internet company's board to address what it called strategic failings.

The fund said in a statement that it did not intend to seek to replace a majority of AOL's board.

(Reporting by Sayantani Ghosh in Bangalore; Editing by Unnikrishnan Nair)