Yahoo sues Facebook

One of the leading search engines, Yahoo, has filed an intellectual property lawsuit against social media giant, Facebook.

Yahoo claims the social network has infringed 10 of its patents, including systems and methods for advertising on the web. Facebook has denied the allegation.

This will be the first major legal battle among big technology companies in social media.

The social network signalled that it believed that Yahoo had not attempted to settle the matter, without involving the courts. It has described Yahoo’s action as “puzzling”. Facebook spokesman Jonathan Thaw said Facebook learned of the lawsuit through the media.

“We’re disappointed that Yahoo, a long time business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation,”

Yahoo has seen its revenues decline in recent years, at a time when rivals such as Facebook and Google have thrived.

In an emailed statement, Yahoo said it is confident it will prevail.

“Unfortunately, the matter with Facebook remains unresolved and we are compelled to seek redress in federal court,” the company said in a statement.

In the lawsuit, Yahoo says Facebook was considered “one of the worst performing sites for advertising” prior to adapting Yahoo’s ideas.

“Mr. Mark Zuckerberg, Facebook’s founder and CEO, has conceded that the design of Facebook is not novel and is based on the ideas of others,” the lawsuit said.

Yahoo’s patent lawsuit follows Facebook’s announcement of plans for an initial public offering that could value the company at about $100 billion.