Facebook and Yahoo Settle Their Dispute with New Advertising and Content PartnershipWritten by Michael Levanduski
July 8, 2012 # 1:08 pm # Industry News, Specials # No Comments
With the countless lawsuits between big names in the digital world, it’s hard to keep track of them all. The results of these lawsuits could genuinely effect internet marketing firms and advertisers from around the globe. That said, it was recently reported by AllThingsD that the patent infringement lawsuit between Facebook and Yahoo has recently come to an end. The two internet kings have conjured a deal that will benefit them both, as well as marketers on the web. An abnormal result, however, is that there will be no actual exchange of cash payment, for the two companies have used their conflict to create a partnership between them.
The lawsuit itself was brought on by Yahoo, with accusations of Facebook infringing upon many of their patents. The complaint that Yahoo initially filed included lines stating, “For much of the technology upon which Facebook is based, Yahoo! got there first and was therefore granted patents by the United States Patent Office to protect those innovations. Yahoo!’s patents relate to cutting edge innovations in online products, including in messaging, news feed generation, social commenting, advertising display, preventing click fraud, and privacy controls.” So, as you may have realized yourself from the excerpt, Yahoo sued Facebook for pretty much everything that their network is known for. The truth is, however, that in some form or another, Yahoo did get there first. So, Facebook had to go through with the lawsuit and come to some sort of agreement. Just recently, they did just that, with a deal that could improve upon the content and advertising of both companies.
According to Kara Swisher of AllThingsD, “the agreement will include a major expansion of their ongoing partnership, including a joint advertising sales effort, as well as cross-licensing of some key patents between the pair.” Kara cites that she acquired this information from sources that are in on the situation. Facebook’s advertising has been attacked vigorously by journalists, reviewers, and advertisers alike for a long while after they released information on their new advertising network. So, this lawsuit may have done them some good. Yahoo has had a decent name in advertising, and it’s possible that with the correspondence between the two companies, they can both come out on top in their advertising efforts. So, it’s hard to tell whether Facebook will be more hurt by this lawsuit than they benefit from it.
Facebook’s been in copious lawsuits with many big names on the web, including the more famous lawsuit with Microsoft, where they ended up shoveling out $550 million for issues pertaining to AOL patents. Facebook rarely ends up on top in these lawsuits, and this new change could be a breakthrough for them. Their partnership could turn out to be a great thing, creating successful advertising methods for both companies. Since Facebook is down in the world of marketing, anything would help their reputation at this point, and I’m sure that’s what they’re hoping for. However, most of the time, lawsuits cause aggravation, and don’t end well.
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