Yahoo Demands Facebook License Its Intellectual Property

Feb. 28 (Bloomberg) — Yahoo! Inc. asked Facebook Inc. to
license technologies covered by its intellectual property and threatened to take
legal action if the companies don’t reach an agreement.

“We must insist that Facebook either enter into a licensing
agreement or we will be compelled to move forward unilaterally to protect our
rights,” Sunnyvale, California- based Yahoo said yesterday in an e-mailed

Yahoo, the largest U.S. Internet portal, is looking for ways to
revive growth after losing ground to Facebook in the display-advertising market
and trailing Google Inc. in Web searches. Yahoo said it has made “substantial”
investments in innovation and that other companies have already agreed to
license those technologies.

There are about 10 to 20 patents in question and they include
technologies related to advertising and messaging, according to a person
familiar with the situation, who asked not to be identified because the matter
isn’t public.

Facebook, the world’s largest social-networking service, hasn’t
yet been able to “fully evaluate” Yahoo’s claims, said Larry Yu, a spokesman for
the Menlo Park, California-based company.

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