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Facebook: Yahoo Suit Threatens "Material" Impact

No one knows how Yahoo’s patent suit against Facebook will play out. Yet based on a new S-1 filing with the Securities and Exchange Commission, the social network is bracing for the worst. “This litigation is still in its early stages and the final outcome, including our liability, if any, with respect to these claims, is uncertain,” Facebook explains in its latest filing. “If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations.”

On March 12, Yahoo filed a lawsuit against Facebook in the U.S. District Court for the Northern District of California, which alleges that a number of the social giant’s products infringe the claims of ten of Yahoo’s patents that Yahoo claims relate to “advertising,” “social networking,” “privacy,” “customization,” and “messaging.” According to Facebook, Yahoo is seeking unspecified damages, a damage multiplier for alleged willful infringement, and an injunction. According to TechCrunch, “Facebook says it has not yet filed an answer or any counter claims to Yahoo’s complaint, but does ‘intend to vigorously defend this lawsuit.’”



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