Content Marketing Blog

Yahoo! refuses to back down against Facebook

The battle between social media giant Facebook and internet pioneer Yahoo! continues as accusations of illegal patent purchasing come to light.

Yahoo! filed a 37-page response on April 28, defending allegations made by Facebook that accuse the multinational company for violating the social network's patents.

According to Yahoo! attorney Kevin Smith, the case against his client lacks truth.

"In retaliation for Yahoo!'s good faith allegations of patent infringement, Facebook alleges infringement of 10 patents as counterclaims," he said in a papers filed with the US federal court, according to AFP sources.

"Facebook lacks a good faith basis for most, if not all, of its counterclaims, particularly those patents that it purchased from others."

In what Mr Smith claims was "inequitable conduct", Yahoo! argues that Facebook bought patents to use as legal ammunition in their fight.

Yahoo! originally accused Facebook of infringing ten patents back in March – to which the social networking site retaliated with claims that Yahoo! had done the same thing.

While Yahoo!'s claims were based on the areas of advertising, privacy and messaging, Facebook accused Yahoo! of infringing patented technology such as news, games, travel and photo-sharing.

The lawsuit – which has now been running for six weeks – comes as Facebook is looking to make its initial public float on the US stock market.

The social media giant warned potential investors that the currently lawsuit can impact on its share price when it begins publicly trading in May

"This litigation is still in its early stages and the final outcome, including our liability, if any, with respect to these claims, is uncertain," Facebook said in a statement to the US Securities and Exchange Commission.

"If an unfavourable outcome were to occur in this litigation, the impact could be material to our business, financial condition or results of operations."

Posted by Elise Ferrari