Yahoo, Facebook Settle Scores

Tech giants Yahoo and Facebook have reached a settlement on a patent litigation lawsuit that started in March. And now, it appears the two companies are banding together for an advertising and distribution partnership.

The two companies have agreed to work together to provide advertisers more avenues to promote their brands in both Yahoo and Facebook sites. Facebook users can also now have access to Yahoo’s events coverage.

Last March, Yahoo filed a lawsuit against Facebook for patent infringement, which covers advertising and information sharing, and Internet privacy. Facebook fired back a month after, filing a similar infringement suit.

Yahoo’s lawsuit hinged on 10 patent infringements and was seeking triple damages. Similarly, Facebook’s case against Yahoo was also on 10 patents plus its Flickr-photo sharing service.

Yahoo filed the case when Scott Thompson was still chief executive officer of the company. He resigned in May after controversies surrounding his misinformation on his academic records.

Industry observers said interim chief executive Ross Levinsohn has worked an agreement with Facebook chief operating officer Sheryl Sandberg to arrive at a mutually beneficial agreement. Sandberg said both parties are happy with the developments and the Facebook is looking forward to the partnership.

The Facebook COO also commended Yahoo’s new leadership, saying they are giving importance on innovation and providing great products to their users.

Although the two parties have agreed on a settlement, neither Facebook nor Yahoo has filed to have the case dismissed. Industry analysts, however, are expecting that this will be done soon.