A Facebook logo

Yahoo Suit Against Facebook Includes Online Ad Patents

  |  March 13, 2012   |  Comments

Alleges news feed and video content ads are based on Yahoo patents.

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."

A Facebook spokesperson told V3 that the company was only made aware of the suit after early media reports surfaced.

"We're disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation," the spokesperson said.

"We will defend ourselves vigorously against these puzzling actions."

The suit comes as Facebook is preparing to launch what has become the most anticipated initial public offering in years. The company is set to put itself on the stock market in a deal which could push its value as high as $100bn.

Patent suits have become a common feature on the technology landscape in recent years. Industry heavyweights such as Microsoft, Apple, Motorola and Samsung have been tied up in high-profile patent suits.

This article was originally published on V3.

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ClickZ Live San Francisco Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!

ABOUT THE AUTHOR

Shaun Nichols

Shaun Nichols is the US correspondent for V3.co.uk. He has been with the company since 2006, originally joining as a news intern at the site's San Francisco offices.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

WEBINARS

Resources

Jobs

    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...
    • Paid Search Account Manager
      Paid Search Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring an experienced Paid Search Account Manager to...