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Yahoo threatens Facebook as patent war looms

Reuters  |  San Francisco 

has demanded licensing fees from for use of its technology, the companies said on Monday, potentially engulfing social media in the patent battles and lawsuits raging across much of the tech sector.

has asserted claims on patents that include the technical mechanisms in the Facebook's ads, privacy controls, news feed and messaging service, according to a source briefed on the matter.

Representatives from the two companies met on Monday and the talks involved 10 to 20 of Yahoo's patents, said the source, who was not aware of what specific dollar demands may have made for licenses.

did not elaborate in an emailed statement on details of its discussions with Facebook, but indicated it would not flinch at taking the giant to court over its patents.

said other companies have already licensed some of the technologies at issue, and that it would act unilaterally if refused to pay for a patent license.

"has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property," the company said.

The meeting between the two companies was first reported by the New York Times.

A spokesman said: "contacted us at the same time they called the New York Times and so we haven't had the opportunity to fully evaluate their claims."

Should wind up suing Facebook, it would mark the first major legal battle among technology giants in the social media sphere and a major escalation of patent litigation that has already swept up the smartphone and tablet sectors and high-tech stalwarts such as Apple Inc, Corp and Motorola Mobility.

Yahoo's patent claims follow Facebook's announcement of plans for an initial public offering that could value the company at about $100 billion.

Several companies, including Facebook, have seen an uptick in patent claims asserted against them as they move through the IPO process.

However, most of those lawsuits have been filed by patent aggregators that buy up intellectual property to squeeze value from it via licensing deals, and none by a large tech company such as Yahoo.

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Yahoo threatens Facebook as patent war looms

Yahoo has demanded licensing fees from Facebook for use of its technology, the companies said on Monday, potentially engulfing social media in the patent battles and lawsuits raging across much of the tech sector.

has demanded licensing fees from for use of its technology, the companies said on Monday, potentially engulfing social media in the patent battles and lawsuits raging across much of the tech sector.

has asserted claims on patents that include the technical mechanisms in the Facebook's ads, privacy controls, news feed and messaging service, according to a source briefed on the matter.

Representatives from the two companies met on Monday and the talks involved 10 to 20 of Yahoo's patents, said the source, who was not aware of what specific dollar demands may have made for licenses.

did not elaborate in an emailed statement on details of its discussions with Facebook, but indicated it would not flinch at taking the giant to court over its patents.

said other companies have already licensed some of the technologies at issue, and that it would act unilaterally if refused to pay for a patent license.

"has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property," the company said.

The meeting between the two companies was first reported by the New York Times.

A spokesman said: "contacted us at the same time they called the New York Times and so we haven't had the opportunity to fully evaluate their claims."

Should wind up suing Facebook, it would mark the first major legal battle among technology giants in the social media sphere and a major escalation of patent litigation that has already swept up the smartphone and tablet sectors and high-tech stalwarts such as Apple Inc, Corp and Motorola Mobility.

Yahoo's patent claims follow Facebook's announcement of plans for an initial public offering that could value the company at about $100 billion.

Several companies, including Facebook, have seen an uptick in patent claims asserted against them as they move through the IPO process.

However, most of those lawsuits have been filed by patent aggregators that buy up intellectual property to squeeze value from it via licensing deals, and none by a large tech company such as Yahoo.

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Business Standard
177 22

Yahoo threatens Facebook as patent war looms

has demanded licensing fees from for use of its technology, the companies said on Monday, potentially engulfing social media in the patent battles and lawsuits raging across much of the tech sector.

has asserted claims on patents that include the technical mechanisms in the Facebook's ads, privacy controls, news feed and messaging service, according to a source briefed on the matter.

Representatives from the two companies met on Monday and the talks involved 10 to 20 of Yahoo's patents, said the source, who was not aware of what specific dollar demands may have made for licenses.

did not elaborate in an emailed statement on details of its discussions with Facebook, but indicated it would not flinch at taking the giant to court over its patents.

said other companies have already licensed some of the technologies at issue, and that it would act unilaterally if refused to pay for a patent license.

"has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property," the company said.

The meeting between the two companies was first reported by the New York Times.

A spokesman said: "contacted us at the same time they called the New York Times and so we haven't had the opportunity to fully evaluate their claims."

Should wind up suing Facebook, it would mark the first major legal battle among technology giants in the social media sphere and a major escalation of patent litigation that has already swept up the smartphone and tablet sectors and high-tech stalwarts such as Apple Inc, Corp and Motorola Mobility.

Yahoo's patent claims follow Facebook's announcement of plans for an initial public offering that could value the company at about $100 billion.

Several companies, including Facebook, have seen an uptick in patent claims asserted against them as they move through the IPO process.

However, most of those lawsuits have been filed by patent aggregators that buy up intellectual property to squeeze value from it via licensing deals, and none by a large tech company such as Yahoo.

image
Business Standard
177 22

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