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FacFacebook launches patent counterattack against Yahoo
(Reuters) -
Facebook fired back on Tuesday in its legal battle with Yahoo by
accusing the Web pioneer of infringing 10 of Facebook's patents,
according to a court filing.
The counterclaim from Facebook,
filed in a San Francisco federal court, comes after Yahoo a sued
Facebook for patent infringement last month.
The
dueling claims mark an expanding web of patent litigation that has
already caught up the smartphone and tablet sectors and high-tech
stalwarts such as Apple Inc, Microsoft Corp and Motorola Mobility
Holdings Inc.
Yahoo's lawsuit
against Facebook came at a delicate time, as the world's largest
Internet social networking service is preparing for an initial public
offering that could value the company at up to $100 billion.
Observers
have said that companies are usually more vulnerable to patent suits
when they are in the IPO process, as investors scrutinize the risks
involved in the business.
But
Facebook's counterclaim comes as Yahoo addresses its own challenges: the
Web pioneer has seen declining revenue, and newly installed Chief
Executive Scott Thompson is facing a contentious proxy fight with
activist hedge fund Third Point.
Yahoo
spokesman Eric Berman said Facebook's counterclaim is "nothing more
than a cynical attempt to distract from the weakness of its defense."
Five
of the patents asserted by Facebook target features related to Yahoo's
online advertising business, which Facebook pegged at 80 percent of
Yahoo's 2011 revenue, according to the counterclaim.
Yahoo's
Flickr photo sharing service infringed various Facebook patents
involving the ability to connect with other users on the online service,
to identify people in a photo and to generate personalized news feeds,
according to the filing.
At least
one of the patents asserted by Facebook -- a method for tagging digital
media -- lists its chief executive, Mark Zuckerberg, as one of the
inventors, according to a U.S. government database.
Facebook
General Counsel Ted Ullyot said the company had indicated that it would
defend itself vigorously in the face of Yahoo's lawsuit.
"While
we are asserting patent claims of our own, we do so in response to
Yahoo's short-sighted decision to attack one of its partners and
prioritize litigation over innovation," Ullyot said in a statement.
Yahoo
has claimed Facebook infringed 10 of Yahoo's patents, including several
that cover online advertising technology. In its lawsuit, Yahoo said
Facebook was considered "one of the worst performing sites for
advertising" prior to adapting Yahoo's ideas.
The case in U.S. District Court, Northern District of California is Yahoo Inc. v. Facebook Inc., 12-cv-1212.
Yahoo shares fell 2.4 percent to $15.09 in afternoon trading on Tuesday.
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