Yahoo Charges Facebook for Patent Infringement

Yahoo has reportedly sued Facebook on Monday, filing a complaint against the social network that it violated 10 of its patents.

Yahoo filed its company in the U.S. District Court in San Jose, California. In its complaint, Yahoo described that it innovated several features, such as messaging, news feed generation, social commenting, advertising display, preventing click fraud and privacy controls.

The Yahoo’s complaint reads as, “Facebook was not launched until 2004, 10 years after Yahoo was founded. Facebook has since grown to be one of the most widely trafficked sites on the Internet. That growth, however, has been based in a large part on Facebook’s use of Yahoo’s patented technology.”

Yahoo Yahoo Charges Facebook for Patent Infringement

Yahoo also quotes Facebook’s CEO Mark Zuckerberg as acknowledging the fact that “getting there first is not what it’s all about.” The complaint further adds, “Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology.”

This is certainly an awkward time for Facebook to face such legal claims from Yahoo, as the social network is likely to launch an IPO (initial public offering) in May to raise $5 billion. Yahoo, on the other hand, is also struggling to keep its quickly declining market shares and revenues on track by implementing right policies. Yahoo is taking risks to engage it in patent trolling to regain its lost image.

The dispute reaches the courtroom room after both the companies failed to reach any agreement over the issue outside the courtroom. The New York Times reports that Yahoo was in talks with the social networking giant over its patent claims earlier, but could not find any clue to settle the dispute. The report also suggests that Yahoo was threatening a lawsuit in case Facebook didn’t offer licensing fees.

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