Facebook and Yahoo Settle Patent Suit with Advertising Deal

by Jordan Richardson on July 9, 2012

Facebook and Yahoo have settled their patent lawsuit by dropping it and effectively licensing each other’s patents. Also included in the deal is an advertisement arrangement that builds on their existing partnership.

Back in March of this year, Yahoo launched a suit against Facebook over 10 patents that included advertising methods and systems. Yahoo claimed that “Facebook’s entire social network model” was based on their “patented social networking technology.” The suit claimed that Facebook was “free riding” Yahoo’s intellectual property.

A little under a month later, Facebook fired back with a lawsuit of its own for Yahoo. The social networking giant’s suit was essentially a return-fire, launched to aggressively tell Yahoo that it wasn’t simply going to walk all over Facebook while it headed into its now-disastrous IPO.

Now that the dust has somewhat settled on the IPO and things have chilled, it looks like cooler heads have prevailed – for now.

Facebook Chief Operating Officer Sheryl Sandberg and Yahoo interim chief executive officer Ross Levinsohn settled the deal and worked out the terms. The boards of the companies have both agreed to the terms.

Specifics of the agreement appear to include patent portfolio cross-licensing, which resolves the March dispute. There will also be joint “premium media experiences” across both Yahoo and Facebook, which will include event coverage for Yahoo on Facebook sites and more Facebook integration across Yahoo sites.

“We are excited to develop a deeper partnership with Facebook, and I’m grateful to Sheryl [Sandberg] and her team for working hard together with our team to develop this dynamic agreement. We are looking forward to building on the success we have already seen to provide innovative new products and experiences for both consumers and sponsors,” Levinsohn said in a statement.

“I’m pleased that we were able to resolve this in a positive manner and look forward to partnering closely with Ross and the leadership at Yahoo,” said Facebook’s COO. “Yahoo’s new leaders are driven by a renewed focus on innovation and providing great products to users. Together, we can provide users with engaging social experiences while creating value for marketers.”

The deal should also help Facebook fish out some more money through advertising prospects and “world class sponsorship opportunities,” something it’s needed to do ever since it went public earlier this year.

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Written by: Jordan Richardson. www.digitcom.ca. Follow TheTelecomBlog.com by: RSSTwitterFacebook, or YouTube.

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Facebook Considers Search Partnership with Yahoo — TheTelecomBlog.com
November 19, 2012 at 5:30 am

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