Yahoo and Facebook have been locked in a legal battle for quite some time. Yahoo started the legal feud by claiming that Facebook had infringed on various technologies which originally belonged to Yahoo. These included displaying ads on web pages. Facebook immediately responded to this by counter-suing Yahoo for infringing ten of its patents.
However, it seems that both companies have realized the futility of their legal battles and are now trying to reach a settlement on their own. It has been revealed via court documents that both Facebook and Yahoo are engaged in settlement talks over the alleged patent infringements.
The U.S. District judge who is connected to this case has been asked by Yahoo’s lawyers for an extension of two weeks, so that Yahoo and Facebook can continue their settlement talks for another two weeks and then file their replies to the court.
The court has also been asked by the lawyers to delay a motion hearing which currently is scheduled to take place on Aug 10. The lawyers have requested a delay of two weeks in the hearing too.
While both companies engage in settlement talks, one possibility is that both would agree on cross-licensing of patents, thus effectively resolving the issue and resulting in a more liberal use and development of their own tools. Facebook, no doubt, has to register significant growth to justify its IPO and a fine settlement with some patent licenses would be a good omen to that end.