Yahoo has gone ahead and sued Facebook over patents.We reported this was happening last week, after we learned that talks between the two companies broke down.
Here’s the official statement from Yahoo on the suit, via All Things D:
“Yahoo! has invested substantial resources in research and development through the years, which has resulted in numerous patented inventions of technology that other companies have licensed. These technologies are the foundation of our business that engages over 700 million monthly unique visitors and represent the spirit of innovation upon which Yahoo! is built. Unfortunately, the matter with Facebook remains unresolved and we are compelled to seek redress in federal court. We are confident that we will prevail.”
Previously we heard Yahoo wanted to take a percentage of Facebook’s revenues going forward.
This better work for Yahoo. The company is destroying what’s left of its reputation by trying shakedown Facebook.
Facebook’s statement on the matter, via CNBC: “We’re disappointed that Yahoo’s effort to engage with us was limited to a few short phone calls … We will defend ourselves vigorously against these puzzling actions.”
Below is the complaint from Yahoo, via All Things D.
Some highlights from the complaint:
- “Without Yahoo!’s achievements, websites such as Facebook would not enjoy repeat visitors or substantial advertising revenue.”
- “Yahoo! recognised that website users are attracted to free services. But website operators need a way to generate revenue even when offering services for free. Yahoo!’s Advertising Patents claim effective methods of advertising, or generating advertisements that relate to users individually and monitoring advertising clicks for potential click fraud.”
- “Prior to adopting Yahoo!’s patented social networking technology in 2008, Facebook was considered one of the worst performing Internet sites for advertising. Facebook’s use of that social networking model has reportedly dramatically driven up Facebook’s advertising click through rates.”
- “The News Feed’s popularity, however, is directly linked to Facebook’s infingement of Yahoo’s customisation Patents”
- “Facebook addresses the privacy problem by using Yahoo!’s Privacy Patents.”
- “Facebook therefore owes much of its popularity with Internet users to its unauthorised infringement of Yahoo!’s patents.”
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