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Codebreaker

Facebook countersues Yahoo

John Moe Apr 4, 2012

If you were expecting that Facebook would quietly write Yahoo a check to make that old patent lawsuit go away, well, nope. Facebook is countersuing Yahoo for, yep, patent infringement. Big Face argues that 80% of Yahoo’s revenue comes from Facebook patents that it is using illegally, including display advertising, content personalization, and photo sharing. Facebook is being transparent that the whole reason this countersuit is being filed is to strike back at Yahoo over its original suit.

The New York Times quotes a Facebook honcho:

“From the outset, we said we would defend ourselves vigorously against Yahoo’s lawsuit,” Ted Ullyot, Facebook’s general counsel, said in a statement. “While we are asserting patent claims of our own, we do so in response to Yahoo’s short-sighted decision to attack one of its partners and prioritize litigation over innovation.” Facebook said in its filing that it is asking the court to find Yahoo’s patents invalid and is demanding damages and the payment of its legal fees.

Facebook and Yahoo have been partners in a lot of ventures in recent years and the once-huge Yahoo has benefited greatly from the deal, seeing a spike in traffic from Yahoo referrals.

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