San Francisco — The escalating confrontation over patents continues between social media humongous Facebook and internet pioneer Yahoo. In its response to Yahoo’s patent infringement suit filed last month, Facebook is not only defending itself, but on Tuesday countersues Yahoo of infringing 10 of its patents in several of Yahoo’s most popular services including the Yahoo Homepage, Yahoo Finance, Yahoo Sports and the Flickr photo sharing service, according to a court filing.
In a counterclaim from Facebook, filed in a San Francisco federal court, accuses that the struggling Internet pioneer is contravening the social media network’s patents–and not the other way around. The disputing claims intensifies the patent litigation hostilities that has already caught up the smartphone and tablet sectors and high-tech stalwarts such as Apple Inc., Microsoft Corp and Motorola Mobility Holdings Inc.
Just last month, Yahoo sued Facebook in a California court blaming the social media giant of violating on 10 patents that Yahoo claimed were fundamental to how the social network operates.
“If Yahoo believed Facebook was a soft target due to its IPO, today’s 10 patent infringement counterclaims show it barked up the wrong tree,” patent expert Florian Mueller of the FOSS Patents blog said on Twitter.
In fact, the lawsuit came at a delicate time, as the world’s largest Internet social networking powerhouse is preparing for an initial public offering that could value the company at up to $100 billion.
Ted Ullyot, Facebook’s general counsel, said in a statement:
“From the outset, we said we would defend ourselves vigorously against Yahoo’s lawsuit, and today we filed our answer as well as counter-claims against Yahoo for infringing ten of Facebook’s patents… 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.”
Yahoo, in a 19-page lawsuit filed in US District Court for the Northern District of California, filed in March, was pretty comprehensive, covering everything from placing ads on Web pages and customizing views for social users. The company’s move came as it vies to find its footing in a fast-moving market that has left the bygone Internet pioneer far behind.
With the ongoing conflicts spreading like wildfire, observers have argued that companies are usually more vulnerable to patent suits when they are in the IPO process, as investors scrutinize the risks involved in the business.
In fact, Facebook’s counterattack comes as Yahoo catch up in its own challenges: the Web pioneer has seen declining revenue, and newly installed Chief Executive Scott Thompson is facing a contentious proxy fight with activist hedge fund Third Point.
Yahoo spokesman Eric Berman said Facebook’s counterclaim is “nothing more than a cynical attempt to distract from the weakness of its defense.”
Five of the patents asserted by Facebook target features related to Yahoo’s online advertising business, which Facebook pegged at 80 percent of Yahoo’s 2011 revenue, according to the counterclaim.
Facebook did not immediately respond to a request for further comment.
In a statement sent via email, Yahoo said it had only just received the filing but that it believes Facebook’s claims are without merit.
“As we have made clear from the beginning, the unauthorized use of our patented technology is unacceptable and must be resolved appropriately,” Yahoo said. “Other leading companies license these technologies, and Facebook must do the same or change the way it operates.”
In its complaint, Facebook is asserting that Yahoo infringed on the following U.S. patents: 7,827,208; 7,945,653; 6,288,717; 6,216,133; 6,411,949; 6,236,978; 7,603,331; 8,103,611; 8,005,896; and 8,150,913. These can be viewed by searching at the U.S. Patent & Trademark website.
The case in U.S. District Court, Northern District of California is Yahoo Inc. v. Facebook Inc., 12-cv-1212.
Facebook Answer and Counterclaims
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