Yahoo Smacks Facebook With Patent-Infringement Claims
In a classic high-tech case of if-you-can't-beat-them-sue-them, Yahoo (NASDAQ:YHOO) Feb. 27 accused partner Facebook of infringing on patents related to social networking and other technologies.
Yahoo is struggling to boost user engagement at a time when it is losing eyeballs to Facebook, Google, Twitter and other Internet companies. Yahoo wants Facebook to pay to use technology spanning 10 to 20 patents covering online advertising, Website personalization and social networking, according to The New York Times.
If Yahoo doesn't secure the licensing deals it wants, the company said it would sue Facebook, which is girding for an initial public offering worth some $75 billion to $100 billion this year. "Yahoo has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property," a Yahoo spokesman said. "We must insist that Facebook either enter into a licensing agreement, or we will be compelled to move forward unilaterally to protect our rights."
