Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Yahoo Said to Be in Talks to Resolve Facebook Patent Suit

Don't Miss Out —
Follow us on:

June 5 (Bloomberg) -- Yahoo! Inc. is in negotiations to resolve a legal dispute with Facebook Inc., which it accused of infringing patents, according to a person briefed on the matter.

Yahoo has undergone board and management change since it filed the lawsuit in March and is engaged in the talks to help improve ties with Facebook, said the person, who didn’t want to be identified because the matter is private.

Under former Chief Executive Officer Scott Thompson, Yahoo alleged that social-networking provider Facebook infringes patents covering such functions as Internet privacy, advertising and information sharing. Facebook countersued in April, accusing Yahoo of infringing 10 of its patents. Thompson resigned the following month, amid pressure from investors, after failing to correct misstatements in his academic record.

Caryn Marooney, a spokeswoman for Menlo Park, California-based Facebook, declined to comment yesterday, as did Dana Lengkeek, a spokeswoman for Sunnyvale, California-based Yahoo.

Facebook bulked up on intellectual property in the wake of the Yahoo lawsuit. It said in April that it’s paying $550 million for some of the patents that Microsoft Corp. agreed to buy from AOL Inc. Facebook also acquired patents from International Business Machines Corp., a person with knowledge of the matter said in March.

Yahoo, in the lawsuit filed March 12 in federal court in San Jose, California, sought an order barring Facebook from infringing the 10 patents. It also sought triple damages. Facebook later accused Yahoo of infringing 10 patents through its home page and the Flickr-photo sharing service.

“If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition or results of operations,” Facebook, which went public last month, said in a March 27 filing.

The settlement talks were reported earlier this week in the AllThingsD blog.

The case is Yahoo! Inc. v. Facebook, 12-cv-01212, U.S. District Court, Northern District of California (San Jose).

To contact the reporter on this story: Brian Womack in San Francisco at

To contact the editors responsible for this story: Tom Giles at; Michael Hytha at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.