IT Chimes Blog

Facebook & Yahoo Corroborate for Cross-License their Patent Portfolios

July 7, 2012

Facebook has recently confirmed the patent portfolio cross-license agreement and the ad distribution and sale partnership with yahoo in a press release.

Yahoo and Facebook are ending their patent fight by agreeing to cross-license their entire patent portfolios. They have called their patent grievance by also agreeing to enter into an ad sales partnership allowing Yahoo to have like buttons in its ads.

No real money compensation terms will change hands on understanding terms above a patent, as Facebook has recently paid $550 million to Microsoft in another deal linked to AOL patents.

Though, the companies would only enter into a cross – license agreement for some key patents. Facebook may later need to pay to license others from Yahoo. According to the source, the deal taken place among the two giants is quite long. It includes their whole intellectual property stock in such way that they don’t need to pay to use patents of each other and also cannot sue each other for their patent use.

http://tctechcrunch2011.files.wordpress.com/2012/07/yahoo-facebook-contact-impoter-done.png?w=640&h=256

Courtesy: techcrunch.com

An official announcement of the Facebook and Yahoo ultimate agreement states a new advertising partnership, extended ad distribution plannings and settlement of all prior patent claims among the companies.

Facebook’s COO Sheryl Sandberg said in the context of the ad partnership, “Combining the premium content and reach of Yahoo! As the world’s leading digital media company with Facebook provides branded advertisers with unmatched opportunity.”

This collaboration step can be beneficial for both Facebook and Yahoo in moving ahead in the competitive market.

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