Yahoo demands Facebook license its patents

Just as the BVLaw Alert forewarned in February, one risk of IPOs is lawsuits. In the most recent case of this phenomenon, Yahoo has threatened to sue soon-to-be IPO provider Facebook over claims that the social network giant has infringed on a number of the search engine’s web technology patents. According to an e-mail statement sent simultaneously to Facebook and the New York Times, Yahoo wants Facebook to pay for the licensing rights to 10 to 20 patents for technologies that include social networking, messaging, advertising, and the personalization of web sites, reports the International Business Times.

In the company’s statement, Yahoo said that it has “a responsibility to its shareholders, employees, and other stakeholders to protect its intellectual property.” The search engine also threatened to file a lawsuit against Facebook if the company doesn’t agree to pay the licensing fees.