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Friday, July 06, 2012
Yahoo and Facebook Launch Alliance, Resolve Patent Dispute

Yahoo and Facebook today announced that they have entered into definitive agreements that launch a new advertising partnership, extend and expand distribution arrangements, and settle all pending patent claims between the companies.

Under the agreements, which include a patent portfolio cross-license, the parties will work together to bring consumers and advertisers premium media experiences promoted and distributed across both Yahoo and Facebook. Yahoo and Facebook will also work together to bring Yahoo's large media event coverage to Facebook users by collaborating on social integrations on the Yahoo site.

The pact settles accusations of technology patent infringements. Yahoo sued Facebook in March, claiming the No. 1 social networking company infringed 10 patents including several that cover online advertising technology.

Facebook, which went public in May, filed a countersuit of its own a month later and called Yahoo short-sighted for its decision to prioritize "litigation over innovation."

"We are excited to develop a deeper partnership with Facebook, and I'm grateful to Sheryl and her team for working hard together with our team to develop this dynamic agreement. We are looking forward to building on the success we have already seen to provide innovative new products and experiences for both consumers and sponsors," said Ross Levinsohn, interim CEO of Yahoo. "Combining the premium content and reach of Yahoo as the world's leading digital media company with Facebook provides branded advertisers with unmatched opportunity."

"I'm pleased that we were able to resolve this in a positive manner and look forward to partnering closely with Ross and the leadership at Yahoo," said Sheryl Sandberg, Chief Operating Officer at Facebook. "Yahoo's new leaders are driven by a renewed focus on innovation and providing great products to users. Together, we can provide users with engaging social experiences while creating value for marketers."

Since the launch of the original multi-year partnership between Yahoo and Facebook that allows users to discover and connect news and information on Yahoo sites and share them with their Facebook friends, Yahoo has integrated the feature called "Social Bar" on more than 100 of its properties globally, and more than 90 million users have implemented it.

Going forward, Yahoo and Facebook have agreed to work more closely and collaborate together on multiple tent-pole and anchor events annually over the next several years to provide unparalleled experiences for consumers and world-class sponsorship opportunities for advertisers.

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