Skip to main content

new Yahoo search screen

Fred Lum/The Globe and Mail

Yahoo has demanded licensing fees from Facebook for use of its technology, the companies said on Monday, potentially engulfing social media in the patent battles and lawsuits raging across much of the tech sector.

Yahoo has asserted claims on patents that include the technical mechanisms in the Facebook's ads, privacy controls, news feed and messaging service, according to a source briefed on the matter.

Representatives from the two companies met on Monday and the talks involved 10 to 20 of Yahoo's patents, said the source, who was not aware of what specific dollar demands Yahoo may have made for licenses.

Story continues below advertisement

Yahoo did not elaborate in an e-mailed statement on details of its discussions with Facebook, but indicated it would not flinch at taking the social networking giant to court over its patents.

Yahoo said other companies have already licensed some of the technologies at issue, and that it would act unilaterally if Facebook refused to pay for a patent license.

"Yahoo has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property," the company said.

The meeting between the two companies was first reported by the New York Times.

A Facebook spokesman said: "Yahoo contacted us at the same time they called the New York Times and so we haven't had the opportunity to fully evaluate their claims."

Should Yahoo wind up suing Facebook, it would mark the first major legal battle among technology giants in the social media sphere and a major escalation of patent litigation that has already swept up the smartphone and tablet sectors and led by Apple Inc. , Microsoft Corp. and Motorola Mobility .

Yahoo's patent claims follow Facebook's announcement of plans for an initial public offering that could value the company at about $100-billion.

Story continues below advertisement

Several social networking companies, including Facebook, have seen an uptick in patent claims asserted against them as they move through the IPO process.

However, most of those lawsuits have been filed by patent aggregators that buy up intellectual property to squeeze value from it via licensing deals, and none by a large tech company such as Yahoo.

Report an error
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading…

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.