“Facebook's patent headaches: More to come?” (CNN.com, 2012)
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Social media leader Facebook was recently sued by Yahoo for patent infringement.
This suit was filed during the month preceding Facebook’s long awaited IPO.
This may sound like a familiar tactic for the struggling company; in 2004, right before Google’s IPO, Yahoo had just settled another patent lawsuit to the tune of $230 million, approximately 1% of Google’s IPO price. Yahoo cashed out on its gain from the lawsuit immediately after the settlement by selling the bulk of its newly acquired stake.
It seems that with rapid growth and success also tends to make a prosperous company a target for lawsuits.
Is Yahoo capitalizing on successful companies by timing its lawsuits to pressure them into immediate settlement or is it merely protecting its intellectual property?
The following article discusses the recent litigation activity.