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Yahoo Sues Facebook for Infringing Patents (YHOO)

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YAHOOYahoo! Inc. (NASDAQ: YHOO), the Sunnyvale, California-based internet company, has sued social networking giant Facebook Inc. for infringing 10 patents, which include methods and systems for advertising on the web. The lawsuit opens the first major legal battle between technology companies in the social media space.

Yahoo filed the lawsuit in a San Jose, California federal court on Monday. The patent lawsuit from Yahoo comes a few days after Facebook announced plans for an initial public offering (IPO).


Commenting on the lawsuit, Jonathan Thaw, spokesman for Facebook, said that the company learned about the lawsuit through the media. Thaw said that Facebook is disappointed that Yahoo, a longtime business partner and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation.

Meanwhile, Yahoo is confident that it will prevail in the patent infringement case. In a statement, the company said that unfortunately the matter with Facebook remains unresolved and Yahoo is compelled to seek redress in federal court.

Yahoo, which was one of the biggest Internet companies, has seen its fortunes decline in recent years. The company has seen a sharp drop in revenues as it struggles to compete against the likes of Facebook and Google Inc. (NASDAQ: GOOG). Earlier this year, Yahoo appointed Scott Thompson, former PayPal President, as its new CEO.

Yahoo shares ended marginally higher in Tuesday’s trading session. The stock ended the day 0.41% higher at $14.55 on volume of 17.13 million.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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