StudiVZ Paying Off Facebook To Back Off And End Legal Dispute

Posted Sep 10, 2009

Facebook and German social network StudiVZ will be ending their legal battle over plagiarism. StudiVZ will be paying Facebook and undisclosed sum of money in order to have both companies withdraw their claims in the U.S. and Germany. Both companies will continue to do business as they have been doing before.

As of this past May, StudiVZ reportedly had about 13 million users in Germany whereas Facebook had about 2 million. In July 2008 Facebook filed a lawsuit against StudiVZ in California saying that they had infringed on the “look, feel, features, and services.” Facebook was even considering buying out StudiVZ but those talks fell through.

The reason why the acquisition did not take place was because Georg von Holtzbrinck, the parent company of StudiVZ was not satisfied with what Facebook had to offer. In early 2007, Georg von Holtzbrinck bought StudiVZ for $134 million.

Another lawsuit was filed in Germany around November 2008 but the County Court in Cologne ruled Facebook because their company lawyers were a bit sloppy in preparations. Facebook said that they were planning to appeal the decision made in that court. Rather than allowing the legal battle to keep going on, a settlement was made and that is that.