Monday, February 27, 2012

Yahoo threatens Facebook as social media patent war looms

SAN FRANCISCO: Yahoo demanded licensing fees for Facebook to use of its technology, the companies said on Monday, potentially engulfing social media in the patent battles and lawsuits raging in much of the technology sector.

Yahoo has already stated claims on patents that include the technical devices in the Facebook ads, privacy controls, news feeds and messaging service, according to a source briefed on the matter.

Representatives of the two companies met on Monday and the negotiations involved 10 to 20 of Yahoo's patents, said the source, who did not know what a specific dollar demand Yahoo can be made for licenses.

Yahoo does not work out in the emailed statement details of his discussions with Facebook, but indicated that not flinch at taking the social networking giant to court over their patents.

Yahoo said other companies have already published some of the technologies in question, and that he would act unilaterally if Facebook had refused to pay for a patent license.

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

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

A Facebook spokesman said: "Yahoo contact us at the same time they called the New York Times, and so we did not have the opportunity to fully evaluate their claims."

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

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

A number of social networking companies, including Facebook, they saw uptick in patent claims asserted against them, how to move through the ship process.

However, the majority of these requests was presented by patent aggregators that buy intellectual property to squeeze value from it through a licensing deal, and no one with a large technology company like Yahoo.

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