Facebook Heading for Lawsuit from Yahoo
Despite all the good that Facebook has had coming its way, there is one aspect that seems to be a problem with Facebook right now and this is the pending lawsuit that may be coming from Yahoo. Recently, many members of both companies sat down together to discuss the allegations that Yahoo has against Facebook. The allegations are that Facebook is using technology that Yahoo developed, yet Yahoo is not getting any sort of compensation for using this. Yahoo is stating that much of the technology that deals with the Facebook ads, privacy settings, and their news feed and messaging is something that they have patents on. Thus, if this is provided to be true, then Facebook has been using this technology without their consent or giving compensation for this.
The talk that happened between the companies representatives were discussing anywhere from ten to twenty of the patents that Yahoo has that are being used by Facebook. As of right now, Yahoo has not said how much that they are wanting for the use of the technology. But, many people are speculating that it is going to be a pretty big amount given the time that Facebook has used the technology and has not given any sort of compensation to Yahoo.
Yahoo has said that they are ready to take Facebook to court for this and are not bothered by the fact that Facebook is such a giant. There are other companies that are ready to step forward with Yahoo in order to back the company up as they believe in what Facebook is doing and what they are saying. Especially since the majority of these companies have licenses out with Yahoo to use the technology that Facebook is using free and clear.
The meeting between Yahoo and Facebook has not been discussed at all in the public, and this could be due to the fact that Facebook does not to affect their IPO in any way that could lessen the amount of money that they do get. However, Yahoo seems more than willing to put their claims out there. Facebook has yet to confirm that they do use the technology that Yahoo developed or not. It is interesting, in most people’s mind that Yahoo took this time to step forward about this when according to them Facebook has been using this technology for quite a while. Many claim that Yahoo wants to make sure that they are getting a part of the IPO that Facebook recently make public. However, only time will tell.
This is not the first time that a social media site is threatening another social media for a lawsuit due to the technology that has been used. Many manufactures of smart phones have contended with other manufacturers over the same type of information. These are lawsuits that take many months to figure out since there has to be a ton of information taken into consideration when ruling against one or the other. Either way, Facebook could face some costly legal fees in order to defend them against Yahoo, which seems to be ready to go all out against Facebook to take them down a notch.
Whether this will affect Facebook in terms of what they offer has yet to be seen. If they are using the technology by Yahoo and not giving any compensation for this, they may be denied use of this until they do pay yahoo. If this were the case, then those on Facebook could see a time in which their messaging and other features not working as they should. However, Facebook is sure to correct any problem as soon as they can in order to ensure that their users are not penalized in any way.