When Yahoo filed a lawsuit against Facebook earlier this month, they, like many others over the last year, claimed that Facebook was infringing on certain method patents developed at Yahoo. However, although Facebook and Yahoo are active in both the social media and mobile arenas, experts do not think Yahoo is looking to launch a full-scale battle around social media.
In contrast, the patent lawsuits in the mobile arena have taken on a vicious, battle-to-the-death nature. Since the products that companies such as Apple, Nokia, Samsung, and Microsoft are offering are in direct competition with one another, it’s not enough for one to simply ask for a cut of the other’s revenue earned from shared technology. In this sphere, the competition needs to be driven out entirely. Moreover, many of these companies are maintaining enormous portfolios of patents as a result of billions of dollars of research investment.
But with Yahoo and Facebook, both can share the social networking space just fine – as long as everyone is paying for the technology they’re using. In fact, with Facebook’s recently announced IPO, Yahoo could simply be looking to take advantage this news and the opportunity it presents. Facebook will likely be much more eager to strike a deal in advance of the IPO so as to avoid scaring off investors. Most experts agree that Yahoo is not foolhardy enough to be using this patent lawsuit to try and shut down Facebook and take over their market share, or really even to be making a dent in Facebook’s formidable armor.
Just as Yahoo! Shopping is not a direct competitor of Sahipasand due to their differences in structure and purposes, in the same way Yahoo community is not a direct competitor to Facebook. This patent suit is merely claiming that Facebook’s technology was taken from Yahoo, and Yahoo accordingly wants their due revenue. In fact, this is a scheme Yahoo has attempted several times before, notably against Google in 2004, just prior to their IPO. As a result, Yahoo scored around $200 million worth of Google shares – a favourable result that they are likely looking to replicate with the Facebook lawsuit.
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