13 Mar 2012

Yahoo Suit Against Facebook Includes Online Ad Patents



By at ClickZ: 
Yahoo has filed a lawsuit against Facebook alleging infringement of 10 of its patents, including patents involving online advertising.
The suit, filed in a San Jose court, accuses Facebook of infringing patents that govern how its social network functions.
"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," the company said in the suit.
"Prior to adopting Yahoo's patented social networking technology in 2008, Facebook was considered one of the worst performing internet sites for advertising."
The suit alleges that Facebook's features including its news feed and video content advertisements are based on Yahoo patents for social networking and online advertising.
Additionally, the suit alleges that Facebook is violating Yahoo patents preventing click fraud.
"Yahoo is harmed by Facebook's use of Yahoo's patented technologies in a way that cannot be compensated for by payment of a royalty alone," the company said in the suit.
"Facebook's use of Yahoo's patented technologies has increased Facebook's revenue and market share because it does not have to recover the costs or time involved in the development of the technology."

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