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Yahoo Unfriends Facebook With Aggressive Patent Demands

theodp writes "'Hate to see something happen to that multi-billion IPO of yours,' is essentially the IPO-threatening message Yahoo sent to Mark Zuckerberg and Facebook investors on the eve of the social networking giant's IPO. Yahoo, unlike the Sopranos, is using IP as its muscle to collect its IPO-protection money: 'We must insist that Facebook either enter into a licensing agreement [for 10-20 Yahoo-owned patents] or we will be compelled to move forward unilaterally to protect our rights,' Yahoo explained in a statement alerting the NY Times to its demand. Yahoo issued a similar last-minute threat to Google on the eve of its 2004 IPO, prompting Google to pony up 2.7 million shares to settle Yahoo's patent lawsuit. BTW, should Facebook also be concerned that Amazon has been beefing up its PlanetAll social networking patents from the '90s, including the one issued Tuesday covering a Social Networking System Capable of Notifying Users of Profile Updates Made by Their Contacts?"

19 of 59 comments (clear)

  1. Who should I hate? by MickyTheIdiot · · Score: 5, Interesting

    Hmmm... I don't like Yahoo or Facebook.

    I think I'll hate the patents themselves. Another ridiculous patent suit wasting the time and money of the courts.

    1. Re:Who should I hate? by Tharsman · · Score: 3, Insightful

      I would say Yahoo. In any argument where someone bring patents into bullying with some crazy timing (like IPO timing... for stuff they pursued others years ago...) the bully loses.

      Also, although I personally dislike Facebook and their disregard for privacy settings, and obsession with tracking, at least there is a bit I admire from them and it's their independence. They are only pursuing the IPO because they are forced to, but Zuckerberg has attempted to keep things indie (huge indie but still indie) all this time.

      Their issue was in granting some... not sure how you call it... profit share? Ownership share? â¦to many early employees that sold all or part of them. As soon as too many people own shares, you must legally do an IPO and go public. So for that at least Zuck has my support even if I refuse to use the services he provides.

      Yahoo is just trying to make it look bad for investors that they are getting into patent trouble. If Zuck refuses to settle and decides to take it to the court, and counter sues for any potential damages, he will get bonus points in my book.

    2. Re:Who should I hate? by Theophany · · Score: 2

      to many early employees that sold all or part of them. As soon as too many people own shares, you must legally do an IPO and go public

      No, you must legally disclose your corporate financials. If you're going to be forced to divulge that level of information, it only makes sense to have an IPO and raise some capital for investment. Unless of course you are hell bent on controlling the company. You cannot force a company to IPO, only to go public with its books.

  2. Why Choose? by Greyfox · · Score: 4, Funny
    People often act like there's only one choice in situations like this. Don't you have enough hate in your heart for both? Here, let me show you how it's done:

    I for one hope they destroy each other in an all out mutual-assured-destruction patent war. Then all die of anal warts. I realize that anal warts are not usually life threatening, but we can dream!

    See? That wasn't so hard, was it?

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    1. Re:Why Choose? by tobiasly · · Score: 2

      I realize that anal warts are not usually life threatening, but we can dream!

      They would be life threatening if they were so massive as to render the victim unable to perform a BM.

  3. I have a dream.... by Nyder · · Score: 4, Insightful

    ... that one day congress/senate will come to their senses and invalidate all software patents, so I can laugh at the money these companies spend on each other over threats of court.

    In other words, the only winners here are the lawyers, which makes the current laws scum laws.

    Laws written by ex-lawyers that really only benefit lawyers. That is what is really going on.

    --
    Be seeing you...
    1. Re:I have a dream.... by SuricouRaven · · Score: 2

      Or they'll realise that the US isn't very good at manufacturing any more because they don't have the cheap peasant labor and total disregard for safety and the environment to be found in China, so intellectual property and services are all they have left to export.

    2. Re:I have a dream.... by Riceballsan · · Score: 2

      Well there are trade secretes and all. The problem with software pattents is it is only comparing the end result or goal being similar. It is like the first person who invented apple pie, claiming anyone who makes any kind of pie after him as breaking his invention. Perhaps they can find a way to rewrite software patents from scratch, but the bottom line is what we have now is far worse than nothing, it protects no-one and is used as a sword against those who try to innovate. So yeah IMO they should abolish software patents in the mean time, and start working on a replacement system.

    3. Re:I have a dream.... by TheReaperD · · Score: 4, Insightful

      Protection for innovative software is a good thing. That's why it's protected by copyright, just like books and any other documents. Software is not a solid object and thus shouldn't be protected by patents. Though there are issues with current copyright law as well, it is the correct category for software protection.

      --
      "Be particularly skeptical when presented with evidence confirming what you already believe." -
    4. Re:I have a dream.... by Qzukk · · Score: 2

      The problem with software pattents is it is only comparing the end result or goal being similar.

      Bingo. There are a million ways to achieve a result on a computer, but software patent holders routinely insist that their patent covers every possible way of doing something. That's not patenting an invention, that's patenting an idea and it should be completely invalid.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
  4. Time for the pirate party by Anonymous Coward · · Score: 3, Insightful

    The idea that the world will end if we don't let people sue other people over ideas is coming to an end. There are no new ideas, just different applications of the same ideas or a synthesis of several ideas together. The amount of wasted time and money that doesn't create anything new or anything useful is annoying and stupid. There's a phrase "If you created Facebook you would have created Facebook." Put up or shut up. Having a great idea is no longer enough, you have to produce great results. This will not squeeze out the little guy, but it will require that people reward the right people. If you have an idea and you can't scale it up to mass production, you'll loose out. Sorry. If you can take a floundering idea and make it flourish, you deserve to be rewarded. We have to switch from the worker mentality to the owner mentality. If a company is doing well, you should not only buy from them, but invest in them. That way, when they do well, you do well too. I want a great product at a great price. I'm willing to support individuals that produce, but I'm not willing to support individuals that have a great idea but don't produce. That's all this suing ever does. Reward people who don't produce or can't produce. Many of these patents are stupid and obvious. They will not stand much longer. People are going to revolt and demand that this silly crap stops. The pendulum will swing too far, as it always does. Time for the pirate party to end patents and copyright both.

  5. Holy Submarine Patent, Batman! by Qzukk · · Score: 5, Informative

    Amazon's social networking patent was filed in 2011 but

    This application is a continuation of U.S. application Ser. No. 12/506,115, filed Jul. 20, 2009 now U.S. Pat. No. 8,041,595, which is a division of U.S. application Ser. No. 12/127,495, filed May 27, 2008 now U.S. Pat. No. 7,739,139, which is a continuation of U.S. application Ser. No. 11/022,089, filed Dec. 22, 2004 now U.S. Pat. No. 7,386,464, which is a division of U.S. patent application Ser. No. 10/780,486, filed Feb. 17, 2004 (now U.S. Pat. No. 7,194,419), which is a continuation of U.S. patent application Ser. No. 09/348,355, filed Jul. 7, 1999 (now U.S. Pat. No. 6,714,916), which is a continuation of U.S. application Ser. No. 08/962,997, filed Nov. 2, 1997 (now U.S. Pat. No. 6,269,369).

    That patent filed back in 1997 was for a networked personal contact manager. Good luck finding prior art!

    --
    If I have been able to see further than others, it is because I bought a pair of binoculars.
  6. Re:Clash of the Titans by Anne_Nonymous · · Score: 5, Funny

    Note to reality TV producers: Hillman is onto something here.

  7. Your Hatred, It FEEDS ME or "Pub/Sub Flub" by eldavojohn · · Score: 5, Insightful

    I think I'll hate the patents themselves. Another ridiculous patent suit wasting the time and money of the courts.

    Here, let me help you hate.

    Take, just for a quick example, Patent 5133075 (filed in 1988 granted on July 21, 1992) that is cited from the Amazon patent mentioned at the end of the summary (filed in 2011 granted on February 28, 2012). As a lowly software developer, Patent 5133075 reads like a now commonly used pub/sub paradigm. It's basically the opposite of polling. Where, for the longest time, the bulk of software projects would continually ask a central authority (like a database) for updates. So every five seconds you say "Do you have anything new for me yet? No? Okay, I'm asking again in five seconds" ad infinitum. Now, with one client, this is probably not a big problem. But as your number of clients increases this becomes impossible (usually on the network end of things, you DDOS yourself). So the idea becomes for that central authority to allow clients to register somewhere these updates should be shipped and whenever anything changes or something new comes in, you simply send it to everyone who's subscribed to that. It's a publish and subscribe method and we call it pub/sub. Undergrad (probably high school now) concept.

    So with that in mind, Amazon's patent in the summary reads with this final sentence: "The system may also automatically notify users of personal information updates made by their respective contacts." Oh, okay, so you took a now commonly used paradigm and applied it to social networking. Congratulations. Surely Twitter and Facebook were doing this before 2011 but what idiot allows a company to include any language like this in a patent? That's not an invention, it's not even really a derivative of an old invention. It's taking an old solution and applying it the same way we've been using it for almost twenty years. And now this new piece of shit is dated February 2012 and we have to deal with this unadulterated human feces for another twenty years? *head explode*

    --
    My work here is dung.
    1. Re:Your Hatred, It FEEDS ME or "Pub/Sub Flub" by JasterBobaMereel · · Score: 2

      Software patents are mostly of the blindingly obvious or "...on a mobile device" "...on a website" kind

      This is the main problem with them, and why so many people are against software patents, lawyers think they are novel ideas, programmers don't, and so everyone ends up with the ability to sue everyone else ...

      An idea that is so un-novel that everyone is already using it should not be patentable ...

      --
      Puteulanus fenestra mortis
  8. Re:It'd Be Easier If It Was an Open Source License by ZeroSumHappiness · · Score: 2

    Let's say I make a product and give it a GPL license. If someone modifies and redistributes my code outside of that license then they've done something I don't like /with something I created/.

    Let's say I get a software patent. If someone infringes on that patent then they've done something that doesn't financially benefit me /with something similar to what I thought up/.

    I feel there's a strong distinction there. I made it and only want it used in accordance with my wishes. I thought up a possible result (neither created the result nor created a process to that result) and want financial compensation for that. Yeah, no, not the same.

    (Process patents are fine, to me. An algorithm is not a process. "Ooh, ooh, what if you could buy that thing /with one click/" is not a process nor an invention.)

  9. Is there any doubt... by forkfail · · Score: 3, Insightful

    ... that the patent system is about division of wealth, and not about creating products that lead to wealth these days?

    This thread will probably turn into a flame war about the relative merits of Yahoo/ABC and Facebook. But the true story here is, that like all the other big patent battles going on these days, this is about divvying up the internet between a few players, who will profit forevermore from it. Now it's all about who gets what slice of the pie - a pie that will keep on giving forever.

    --
    Check your premises.
  10. The Lifecycle of a Tech Company by Cid+Highwind · · Score: 5, Insightful

    Startup > Rising Star > Established Player > Unstoppable Juggernaut > Clueless Dinosaur > Patent Troll > "Hey, remember Unisys? Whatever happened to them?"

    Welcome to phase VI, Yahoo! See you at the bankruptcy liquidation auction.

    --
    0 1 - just my two bits
  11. How to make money by StoutFiles · · Score: 2

    1. Patent anything and everything. 2. Knowingly let companies use your patented works. 3. Wait till they get rich. 4. Sue their brains out.