Mediaboss Marketing

By now you've heard that Yahoo has sued Facebook, alleging patent infringement. But just which pieces of intellectual property is Yahoo claiming Facebook ripped off?

Surely, you'd say, Yahoo doesn't claim that it invented the entire social networking model Facebook is based uponexcept it turns out that is almost exactly what Yahoo is claiming.

"Facebook's entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo!'s patented social networking technology," Yahoo claims in the lawsuit, filed yesterday in US District Court in Northern California. "Prior to adopting Yahoo!'s patented social networking technology in 2008, Facebook was considered one of the worst performing Internet sites for advertising. Facebook's use of that social networking model has reportedly dramatically driven up Facebook's advertising click through rates."

Nearly all the technology that makes Facebook successful is based on Yahoo patents, the company further states.

"For much of the technology upon which Facebook is based, Yahoo! got there first and was therefore granted patents by the United States Patent Office to protect those innovations. Yahoo!'s patents relate to cutting edge innovations in online products, including in messaging, news feed generation, social commenting, advertising display, preventing click fraud, and privacy controls," Yahoo alleged in its court filing. "These innovations dramatically improve user experience, privacy, and security and enhance the ability of advertisers to connect with users."

What does Yahoo want? Money. Lots of money.

"Even if Facebook were to subsequently pay past due royalties, it would still enjoy a market share it has developed during its period of 'free riding' on Yahoo!'s intellectual property. Yahoo! would likewise lose its portion of the market share for this period. Due to the difficulty in predicting whether, if at all, such market share can be recovered, Yahoo!'s harm cannot be compensated by payment of past due royalties alone."

Yahoo doesn't specify a dollar amount. But whatever amount of damages the court sees fit to grant, Yahoo says those damages should be tripled "in view of the willful and deliberate nature of the infringement."

Yahoo is asserting ten patents against Facebook, divided into five categories: social networking, advertising, privacy, customization, and messaging. Facebook, by the way, apparently owns just 21 US patents, while Yahoo has more than 1,000.

Yahoo notified Facebook of the allegedly infringed patents on Feb. 27, and then filed suit after Facebook apparently refused to pay the licensing fees Yahoo demanded. Let's take a look at each of the ten patents being asserted against Facebook, organized by the category divisions used in Yahoo's lawsuit.

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Yahoo IP lawsuit: We patented "Facebook's entire social network model"