In a widely expected move, Facebook and Yahoo have agreed to put aside a ruinous lawsuit that would have locked the two Silicon Valley giants into a lengthy patent throwdown.
The news comes via Kara Swisher of All Things D who reports that the two firms will not only put sheathe their lawyers but also enter wide-ranging content and advertising partnerships.
The report says that the deal has been blessed by both companies’ boards and that no cash will change hands despite Facebook’s having shelled out $ 550 million to buy a patent portfolio from Microsoft.
The pact resolves a contretemps that began when Yahoo’s former CEO declared that Facebook’s social network was based on Yahoo’s technology and sued over ten patents. The lawsuit enraged many in Silicon Valley who accused Yahoo of fueling the tech sector’s runaway patent litigation, and led Facebook to launch a counter lawsuit.
The controversy began to die down after Thompson was driven out of the company in May after it emerged he had fabricated important parts of his resume.
More to come
(Image by Marcel Jancovic via Shutterstock)
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