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Yahoo Claims to Own Facebook

As we predicted last month, Yahoo has decided to move forward and sue Facebook over claims that Facebook is infringing on a wide range of things from a news feed, messaging, social network, privacy technology and pretty much everything else.

This absolutely massive complaint basically claims “Facebook’s entire social network model, which allows users to create profile for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology.” Basically, Yahoo basically owns the entire Facebook site technology, and Facebook needs to pay up immediately.

This comes at a horrible time for Facebook as they attempt to grow their advertising base as they plan going public. With this possible lawsuit, that says nothing short that Facebook’s entire business plan and technology is based on Yahoo patents, it means that Facebook would face a hard time going public or continuing to operate as long as they were facing this shadow. In fact in the lawsuit, they are asking for triple damages, which would mean tens of billions of dollars, or require Facebook to stop using their patents, effectively shutting the site down.

Yahoo sued Google similarly, before they went public, claiming Google was infringing on their patents. That results in Yahoo receiving almost $1.5B in stock from Google. The reason they are filing a lawsuit now, is pretty much hoping to have the same scenario applied to them, but probably 10 times more money.

The Full Complaint is Below

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Pace Lattin

Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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  1. This article is riddled with errors and mistakes….

    Good topic, terrible journalism!

  2. Intriguing! I don’t think what facebook hook up with yahoo.I am hoping that sooner or later they will settle this stuff. And we’ll go through smooth sailing thingy.

  3. What rings in my ear the most is that all Yahoo has left is its patent infringement claims. The once behemoth may simply cease to exist as a viable search engine and become a shadow company who sues to pay its shareholders.

  4. Pay up Zuckenburg!

    Facebook is on the way out. It’s such a waste of people’s time and full of spam. Facebook is not a replacement for actually making real interactions with real people.

    A different topic, but I couldn’t stop laughing when people would claim that Facebook was great than Google.

  5. As a pioneer Yahoo had all the advantage to take the lead but they are now a fallen giant that has run out of ideas and cant compete with Google or Facebook anymore…and of course what they only know now is the art of suing.

  6. Sort of sad that the company went from being the cat’s meow of search, news, and groups to a patent troll…

    Once Alibaba breaks free the company will only have a few interesting highly trafficked assets (ie News).

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