Posts Tagged ‘yahoo’

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On the eve of Facebook’s heralded IPO, Yahoo is trying to shake down Facebook, demanding payment for infringement of 10-20 of its patents. Yahoo and Facebook had been buddy-buddy until Yahoo made its move, but this will at least shake things up.

Yahoo, after all, is largely irrelevant to most internet users. Aside from sending email to people who haven’t yet switched to Gmail and the occasional news article, I have not used Yahoo in years. Yahoo knows that if it can’t do an about-face now, it is on the decline. It’s only a matter of time until it is absorbed by company for essentially the value of its intellectual property (i.e., RIM, Kodak, Nokia). Seeking to reap a bid-pay day, a la the pre-IPO settlement Yahoo made with Google, whereby Google gave Yahoo 2.7 million shares in a patent settlement before the search giant’s 2004 IPO. Investors do not want the uncertainty of litigation when they buy chunks of a $100 billion company. If the prospective suit has merit – and I have no idea whether it does – Facebook will probably settle. It can afford it, and historically it has been conservative with patents, knowing that it has a relatively weak inventory of its own.

Yahoo is not keeping this a secret. On the contrary, Yahoo has told the NY Times that the two companies met, and that Yahoo, “We must insist that Facebook either enter into a licensing agreement or we will be compelled to move forward unilaterally to protect our rights.”

Yahoo’s shareholders, who will probably get a short-term dividend, should be worried; Yahoo’s innovation ended about 10 years ago. Facebook is already ten times Yahoo’s size, and keeps innovating (for better or worse).

More analysis from a guy who called this a mile away: Techcrunch.

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By: Mark R. Malek

I was reading my daily intellectual property update from PatentlyO this morning when something caught my eye.  Apparently, NBA Champion Dallas Mavericks Owner, Mark Cuban has some suggestions on patent law.  See his article here.

No Patents For You

It is not surprising that Mark Cuban has some opinions on patent law.  After all, it is not as though he is unfamiliar with technology.  Cuban made his fortune in the software industry.  His first company, MicroSolutions, was sold to CompuServe for $6million, and his second company, Audionet, which became Broadcast.com, was acquired by Yahoo for $5.9 BILLION…Yes, with a “B.”

What was surprising to me, however, was Cuban’s thoughts on patent law.  I thought they were a bit misguided.  In reading his article, Cuban’s real gripe appears to be patent trolls.  I’m with you Cuban.  Your solution to patent trolls, however, is to eliminate software patents and process patents (I assume he is referring to business method patents).  The U.S. Supreme Court all but eliminated business method patents with the Bilski decision last year.

Cuban’s suggestion does nothing more but bar entry into the market for small inventors.  How is the small software developer that has developed a new software product to compete with the billion dollar companies.  Notice, however, that I am focused on the inventor that has actually developed something.  The answer to Cuban’s concerns lie with a measure that addresses patent trolls and other types of non-practicing entities.  Cuban said it himself in his article: “Afraid that some big company might steal the idea? That is life.”  Mr. Cuan – isn’t this the exact thing that patent law is mean to protect?

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By Scott Nyman

Back in August, Interval Licensing LLC (“Interval”) initiated patent infringement litigation against tech giants Apple, Google, Facebook, Netflix, YouTube, Yahoo, eBay, AOL, and others in the U.S. District Court for the Western District of Washington. Early this past December, Judge Marsha Pechman dismissed the lawsuit for failure to specify which of the defendants’ products were actually infringing and set the deadline for an amended complaint to December 28, 2010. Now, still warm from the printer, we have all 35 pages Interval’s amended complaint for our reading enjoyment.

Interval, a company formed in 2000 by Microsoft co-founder Paul Allen and former Xerox executive David Liddle, is the company that holds the intellectual properties of the former research company, Interval Research LLC. Interval Licensing now holds and manages a portfolio of patents in the areas of information systems, communications, and computer science.  Among Interval’s portfolio, it has selected four patents as the subjects of its current litigation.

Interval’s first patent of litigation is U.S. Pat. No. 6,263,507 to Ahmad, et al., titled “Browser for Use in Navigating a Body of Information, with Particular Application to Browsing Information Represented by Audiovisual Data.” This patent deals with flexibly categorizing news events from multiple sources into a presentation that allows easy access for users and providing other relevant news events. Interval alleges a laundry list of Defendants’ websites that infringe on the ‘507 patent.

Interval’s next patents of litigation are U.S. Pat. Nos. 6,034,652 and 6,788,314 both to Freiberger, et al., titled “Attention Manager for Occupying the Peripheral Attention of a Person in the Vicinity of a Display Device.” This patent deals with unobtrusive notifications that inform a user of an event, which allow the user minimal interruption of their current workflow. Among the infringing technologies cited in the Complaint, Interval names: AOL, Google, and Yahoo Instant Messaging programs; Apple’s OSX Dashboard; Google’s Gmail Notifier; Google’s Android notification bar; and other notification systems.

Interval’s last patent of litigation is U.S. Pat. No. 6,757,682 to Naimark, et al., titled “Alerting Users to Items of Current Interest.” This patent deals with the real time notification that an item of current interest is available for access by a user. Here, Interval alleges its patents are infringed by: AOL Shopping websites; Apple iTunes, App Store, AppleTV, and Ping; eBay’s “watching” feature; Facebook’s “Like,” “newsfeed,” and other features; Google’s Orkut service, News service, and “Star” and “Buzz” features; Netflix’s “Movies You’ll Love;” website recommendations from Office Max, Office Depot, and Staples; YouTube’s feature of “liking” videos; and Yahoo’s “Buzzing” feature, shopping websites, and other various recommendation services.

Interval is not holding back, as it is going after some pretty high profile products and services of the named Defendants. Many of these allegedly infringing technologies are substantial parts of each Defendants’ business models. Most likely, the Defendants will assert that their respective actions are outside of the claimed invention of the named patents or that the named patents are invalid.

By the looks of things, this fight is about to heat up. I will continue to follow this case as it develops and keep our readers updated.

You can view the full complaint here.

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