Facebook Inc (NASDAQ:FB) & Yahoo! Inc. (NASDAQ:YHOO) End Legal Patent Battle
Yahoo! Inc. (NASDAQ:YHOO) and Facebook Inc (NASDAQ:FB) said on Friday that they have settled a patent litigation case that began in March, also entered into definitive agreements that launch a new advertising partnership and strengthening distribution arrangements.
The agreement includes a patent portfolio cross-license agreement. The two companies said that they will work together to promote their products and bring consumers and advertisers premium media experiences promoted and distributed across both Yahoo! and Facebook’s website.
Yahoo had filed the original lawsuit under the leadership of Scott Thompson, who resigned as chief executive officer in May owing to pressure from investors, after failing to correct misstatements in his academic record. Ross Levinsohn stepped in as interim chief executive after Thompson’s departure and is being considered as a permanent CEO, among other candidates.
In the March lawsuit, Yahoo alleged that Facebook infringes 10 patents covering such functions as Internet privacy, advertising and information sharing. It also sought triple damages. Facebook countersued in April, accusing Yahoo of infringement of 10 patents.
The end to the patent dispute may free Facebook from potential challenges that the company warned investors in March.
Looking forward, Yahoo! and Facebook have also agreed to work more closely and collaborate together on multiple tent-pole and anchor events annually over the next several years to provide supreme experiences for consumers and outstanding sponsorship opportunities for advertisers.
The shares of Facebook gained 1.20% at $32.11 in the pre-market session.