“Facebook is violating at least 10 of Yahoo‘s patents covering processes for handling Internet ads, the struggling search and Web content company told a federal court in San Jose today. For example, Yahoo says that its patents cover methods and systems for customizing pages based on a user’s preferences, placing ads on a page based on the click through rate, managing the display of a user’s social network information without violating his or her privacy, and enabling an instant message user to exchange messages with an email user.
“The suit comes as both companies are preparing to make potentially profound changes. The suit could complicate Facebook’s plans for a $5B IPO, which it told the SEC last month it intends to file. And Yahoo’s new CEO Scott Thompson is still trying to determine a course for the company. He’s said to be weighing a massive layoff. The company also is fighting a campaign by hedge fund Third Point to elect four dissident directors to the board.”
Read the full story at Deadline.