Yahoo! Adds Counterclaims and Two More Patents In Lawsuit Against Facebook

Posted Apr 28, 2012

Yahoo! has filed five counterclaims designed to invalidate the patents cited in Facebook’s patent infringement countersuit against them. If the court system agrees with Yahoo!’s counterclaims, Facebook would likely be forced to settle by paying Yahoo! in cash and stock. Yahoo! claims that after they sued Facebook for patent infringement, Facebook bought patents “for purposes of retaliation,” which don’t meet the U.S. Patent Office’s “Duty of Disclosure, Candor, and Good Faith.”

Yahoo! also claims that Facebook broke their agreement to inform each other of IP issues before going to the courts. Yahoo! said that Facebook’s new patents were illegally filed. On top of that, Yahoo! filed two more advertising patent infringement claims against Facebook.

The two patents are:
– U.S. Patent No. 7,933,903: System and method to determine the validity of and interaction on a network
– U.S. Patent No. 7,698,315: System and method allowing advertisers to manage search listings in a pay for placement search system using grouping