Yahoo, Facebook Continue Patent Settlement Talks

By Justin Lafferty 

Yahoo and Facebook are trying to put an end to a legal saga in which the Web portal sued the social network for patent infringement. Yahoo claimed in March that Facebook essentially stole its social network model, which includes creating profiles and interacting with other users and businesses. Both sides were in court again Tuesday, as Yahoo asked for a two-week extension to file replies in the lawsuit.

Yahoo’s decision to sue Facebook has been called puzzling, and many industry experts have sided with the social network in this legal fight.

Yahoo attorney Kevin Smith explained the need for the extension in court filings, as quoted by Bloomberg News:

The parties are currently engaged in settlement negotiations to resolve this dispute. The parties believe that a further extension will facilitate settlement.

Although Yahoo continues to build a case, it appears unlikely that it has gained any kind of traction. Facebook countersued Yahoo in April, claiming that the Web giant infringed upon 10 patents accounting for 80 percent of the social network’s revenue. Now the two companies are working toward a settlement, but Bloomberg reports that a motion hearing won’t take place until Aug. 10.

Readers: Do you think Yahoo was wise to sue Facebook, or is the company totally off-base?