It looks like many more companies choose to fight competition by filing claims against their rivals. According to Reuters, this is what Yahoo! plans to do next as the company threatened Facebook with patent lawsuits on Monday. The internet corporation claims that the social media giant has to pay licensing fees for using Yahoo’s technology.
Legal battles might take over the social media domain, as well, after becoming incredibly wide-spread among smartphone and tablet makers. Yahoo’s spokespersons told the press that Facebook has been using technology that was first invented by the internet corporation. The company requests Mark Zuckerberg and his employees to admit that the technical mechanisms they are currently using for ads, privacy controls, news feed and messaging service were first created by Yahoo and to pay copyright fees.
The legal representatives of the two companies met on Monday in order to see whether they can reach a peaceful agreement. Spokespersons declared that the talks involved 10 to 20 of Yahoo’s patents. Despite this, the reps did not reveal the financial demands that Yahoo made for its licenses.
Yahoo released an official declaration explaining the situation. According to this statement, there are many companies that have agreed to pay for the rights of the technologies at issue. As a consequence, Facebook would be the only firm that refuses to conform to their requests. Yahoo further added that they will not hesitate to take Facebook to court over its patent rights. The internet corporation concluded the declaration by saying that it is their duty to protect the intellectual properties of their shareholders, employees and other stakeholders.
Facebook’s representatives told Reuters’ reporters that they didn’t have the time to evaluate the situation because they found out about Yahoo’s intentions when their official statement was released. The social network has been involved in similar situations before, especially since Zuckerberg announced his plans for an initial public offering. However, the majority of the companies that filed lawsuits against Facebook for intellectual properties were small firms trying to squeeze value through licensing deals.
If the dispute ends up in court, this would be the first major legal battle between two social media giants. These disputes are very common at present between tech companies like Apple, Samsung and Motorola.