Yahoo Accuses Facebook

Yahoo is warning to trap Facebook in a copyright violation row, declaring it has got the intellectual property right which is vital to Facebook’s business. The claim was made by Yahoo just a few months ahead of the social networking group’s much publicized initial public offering that might place Yahoo to ask for a share in Facebook.

In a statement Yahoo asserted that it has an obligation to its employees, shareholders as well as some other stakeholders to defend its intellectual property. In order to protect its right, Yahoo has threatened to go ahead unilaterally in case Facebook does not agree on a licensing agreement.

According to analysts there are as many as 20 patents in dispute which cover advertising, networking as well as personalization. The social networking company said it is yet to evaluate Yahoo’s claims.

Facebook has already filed over 410 US patent requests during the last 18 months, with different web organizations, including Amazon. For Yahoo, the intellectual property right dispute might be a tactical move in order to increase funds. The timing is that of an analogous claim of Yahoo against Google’s IPO during 2004. Yahoo had won and Google had to pay $230m for a license to utilize the technology.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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