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Yahoo! files patent infringement lawsuit against Facebook for its use of 10 patents

Yahoo! files patent infringement lawsuit against Facebook for its use of 10 patents. Published: 3/13/2012

Facebook and Yahoo! recently became locked in a patent infringement lawsuit, with Yahoo! claiming Facebook infringed upon its patents related to internet advertising, information sharing and privacy. 

Of the 10 Yahoo! patents Facebook is alleged to have infringed upon, two of them relate to social networking technology, while the others focus on methods for preventing "click fraud," privacy technology and customizing information users can see on a webpage.   

"We're disappointed that Yahoo!, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation," said Facebook spokesman Jonathan Thaw.

While these two powerful tech companies deal with litigation, tech companies observing the legal battle may be prompted to acquire professional liability insurance, which helps companies cover costs of intellectual property litigation and defend their patents.

According to The Associated Press, many believe that the recent patent infringement claim is an attempt by Yahoo! to extract money from Facebook before the company goes public, at which time the company is expected to be worth hundreds of billions of dollars.

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