If you can’t beat ‘em, sue ‘em -- That seems to be Yahoo’s logic as it threatens to tie up Facebook in a patent dispute on the basis that it holds the right to intellectual
property central to the social network.
“For Yahoo, the patent dispute could be a strategic move to raise money,” the Financial Times suggests. “The timing echoes that of a similar claim Yahoo
brought against Google in the run-up to that company’s IPO in 2004.”
“Like certain other tech companies that have failed to keep up with rivals’ innovations, Yahoo is
resorting to a patent battle to top up its revenues,” writes The Register.
The claim
comes just months ahead of Facebook’s expected IPO, which Web watchers say could give Yahoo a bargaining edge, and even secure it a stake in Facebook.
“One has to wonder if Yahoo
sees Facebook as particularly vulnerable right now, in the months before their big IPO,” VentureBeat writes. “Uncertainty over litigation could hurt the stock, meaning Facebook would feel pinched to settle in a short time, rather than drag things into the
courts.”
In total, “Yahoo is seeking to force Facebook into licensing 10 to 20 patents over technologies that include advertising, the personalization of Web sites, social
networking and messaging,” reports The New York Times’ DealBook blog, citing sources.
In its own defense, Yahoo stated it “has a responsibility to its shareholders, employees and other stakeholders to protect its
intellectual property.” As such, it “must insist that Facebook either enter into a licensing agreement or we will be compelled to move forward unilaterally to protect our
rights.”
“But if their positions were reversed and Yahoo were growing usage and revenues dramatically, would the company be equally seeking to generate licensing revenue from
Facebook?” asks Greg Sterling in Marketing Land.
“Honestly,
this is despicable,” judges TechCrunch. “After
relentlessly stagnating as Facebook innovated, to now try to extort Zuckerberg’s company just as it enters the spotlight reeks of desperation.”