Yahoo and Facebook have settled their patent disputes, according to several reports released today. The history of their quarrel resembled so much with a soap opera, that you wouldn't have possibly got bored with any fresh episode Yahoo sued the social network in March claiming 10 of its intellectual properties had been infringed. Facebook wisely bought 750 patents from IBM and counter-sued. It later bought hundreds more patents from Microsoft to strengthen its defence.
Facebook And Yahoo Have Reached Peace
According to several technology sites, the deal involves both companies licensing innovations from the other. It seems that the brands had agreed to combine some of their advertising efforts, adding that no money had changed hands.
AllThingsD reported that Yahoo's interim chief executive Ross Levinsohn had begun talks to resolve the dispute immediately after taking over his mission. It added that Facebook's chief operating officer, Sheryl Sandberg, had also become involved in the negotiations. It's profitable for both sides, Levinsohn keeps his job and Facebook gets rid of a headache.
Although it is reported that no money has exchanged hands, the damage has still proven to be expensive. Facebook had paid Microsoft $550m (£355m) to buy 650 patents and license a further 275. It has not disclosed the cost of its deal with IBM and CNET speculates an impressive amount for ending the story, $83 million.
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