The following is a guest blog. Email me at roshanjoshi@gmail.com with the subject ‘Guest Blog’ if you are interested in guest blogging.
Yahoo has seen some young competitors in the business lately. The company has now got engaged in a patent right fight with Facebook and has also issued a warning to the company over the usage of its intellectual property.
Yahoo has warned Facebook that some of the technologies that it is using have already been filed by Yahoo in its 10 or 20 patents. According to Yahoo, some other companies have also used the Yahoo patent technologies but there is no issue relating to it as they have got the usage licensed by Yahoo.
Facebook can also resolve the issue by getting a license and by paying the license fees. In case Facebook does not opt for the license then Yahoo will be suing the company. Representatives of the two companies met with each other in this regard.
A spokesperson of Yahoo said that Yahoo has a right to protect its intellectual property and the company has also got a responsibility towards its stakeholders, shareholders and employees. Therefore they have to insist that either Facebook goes for the licensing arrangement or they will be protecting their patent rights in a unilateral manner. This message was conveyed by Yahoo to New York Times in an e-mail.
The spokesman for Facebook, Barry Schnitt says that they have not yet been able to completely evaluate the claims that have been made by Yahoo.
Silicon Valley has witnessed many cases relating to patent rights with smart-phones leading the sphere. A whopping sum of $ 12.5 billion was paid by Google to Motorola Mobility last year. This amount was paid by Google in order to access the intellectual properties of Motorola. The defunct communication equipment manufacturer Nortel received an amount of $4.5 billion that was paid by a consortium of companies led by Microsoft and Apple for the 6,000 patents which Nortel had. The different areas of world have witnessed many cases. These cases involved leading smartphone makers like Samsung and Apple.
Yahoo’s warning has come at a very delicate time for Facebook as the company is planning to go public this spring. The event is also one of the most anticipated debut events of times.
Yahoo has last year reviewed it patents to be sold to outside investors also. People who are close to the company have said that these patents included the ‘firsts ‘ also that were awarded to Yahoo. By buying Overture Services, Yahoo has been able to acquire many more intellectual property rights in the year 2003. Overture Services had sued Google over patent issues and was search advertising company.
It is still not clear how much amount will the licensing agreement will cost to Facebook and how much Yahoo will gain if the two companies reach an agreement. Yahoo received around 2.7 million shares in Google when it settled the acquired company battle with it in year 2004.
Yahoo’s patents were rated as being the most valuable in all of the internet and communication services by a technology publication called IEEE spectrum. According to investors the intellectual property rights of Yahoo will give the company more power against Facebook. According to Eric Jackson, a managing member of Ironfire Capital, Yahoo can use the patents for getting a good amount from Facebook.
About the Author:

Margaret is a blogger by profession. She loves writing on hometone and styleguru.
She recently did an article on Facebook fever. These days she is busy in writing an article on angelina jolie wiki.











