The rift between social network giant Facebook and search engine Yahoo heats up with the latter lodging a complaint against the former for patent infringement related to a variety of Web technologies.
In its complaint filed in the
Federal District Court in ,
Yahoo claimed that Facebook knowingly and improperly committed a violation of
its core intellectual properties. The patents issued from 1999 to 2010 covered
advertising, social networking, privacy, customization, and messaging. In
February, Yahoo already gave a warning to Facebook regarding a possible patent
suit. San Jose, California
The latest patent suit is nothing new in
Valley especially in the smartphone industry. In 2011, Google paid
$12.5 billion to Motorola Mobility for breaching its intellectual property. The
latest complaint is the first to hit social networking sites. The newest legal
battle comes in the thick of Yahoo’s most difficult time. The company had just
appointed its new chief executive a couple of months back. Aside from that, it
has been struggling to increase its advertising revenue and gain back its lost
profit from rival Google and Facebook.
Ironically, Facebook and Yahoo have shared a long time relationship with each other. One such collaboration is the integration of Facebook’s news activity feature into its site. As a result, Yahoo’s traffic from Facebook account holders increased by 300 percent in the last quarter of 2011 alone. But this relationship can be tainted in an expected long legal battle.
Yahoo said that they have invested so much time and resources in research and development resulting to licensed patents. A company spokesman said that they have no recourse but to seek redress through a Federal court with the confidence that they will win the battle.
On the part of Facebook, a company representative said that they are disappointed with Yahoo for their recent action. After having been a longtime business partner and gaining substantial benefits from their association, the search engine company resorted to litigation. Facebook said that it will defend itself against these complaints.
Facebook’s social network model lets users create profiles and establish connections with person’s and businesses is derived from Yahoo’s social networking technology. Facebook had the belief that Yahoo would try to resolve the matter without resorting to lawsuits.
The newest lawsuit brings back memories of Yahoo’s decision to sue Google prior to its flotation in 2004. The lawsuit delved around patents which it acquired after taking over Overture. To resolve the issue, Google issued 2.7 million shares to Yahoo.
Mags Malvar is a content writer for a gift and promotion company selling quality giveaways. Check out his blog at http://melvinmags.com.