In 2012, Yahoo sued Facebook (two of the biggest tech companies in the industry) for infringing on at least 10 of their patents which have to do with advertising, privacy, customization, messaging and social networking that both of the companies are involved in. A main message of their statement was the fact that these infringements were at the core of Facebook's ever growing market share, and they wanted their rightly pay for it. A Facebook spokesmen replied with a statement expressing their sadness of Yahoo's pettiness, "we're disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation." And from that, many had Yahoo labeled at a "Patent Troll."
But right after that they fired back with huge counterclaims against Yahoo for allegedly infringing on at least 10 of Facebook's patents, which revolved around photo-sharing and content personalization. So the two multibillion dollar companies found the themselves at a standoff. They both knew that this could get insanely messy and decided to settle on a peace treaty. Thankfully for both parties, no money changed hands and instead, the companies announced what they called a "strategic alliance, which includes a new advertising partnership, expanded distribution arrangements and a patent cross-license."
Great read! Before reading your post, I had never heard of this Yahoo vs. Facebook litigation case. Your inclusion of the messages behind each company in their court statements allowed me to better understand the intricacies behind this case. Fantastic article overall.
It was cool to learn about how these two companies were initially at odds with one another and came to a compromise in the end. I feel like their choice to compromise was definitely a good one. Each side would've lost a lot of time and money to fight these patent litigation lawsuits. By neglecting to do so, they are now benefiting each other's companies and products. It is essentially a win-win situation for them and the consumers who buy their products.
Hi Harley,
ReplyDeleteGreat read! Before reading your post, I had never heard of this Yahoo vs. Facebook litigation case. Your inclusion of the messages behind each company in their court statements allowed me to better understand the intricacies behind this case. Fantastic article overall.
Hi Harley,
ReplyDeleteIt was cool to learn about how these two companies were initially at odds with one another and came to a compromise in the end. I feel like their choice to compromise was definitely a good one. Each side would've lost a lot of time and money to fight these patent litigation lawsuits. By neglecting to do so, they are now benefiting each other's companies and products. It is essentially a win-win situation for them and the consumers who buy their products.