Facebook and Yahoo in talks to resolve patent dispute, court filing confirms

Facebook and Yahoo are looking to settle two patent-infringement suits between the companies, according to a court filing from Yahoo.

Yahoo’s lawyers confirmed that the company is in negotiations with the social network and they requested the court grant them a two-week extension to file replies to the lawsuit and a two-week delay in a motion. Yahoo says it believes an extension will facilitate settlement.

Yahoo filed a lawsuit in mid-March, claiming Facebook infringed on 10 patents Yahoo holds related to advertising, privacy, customization, messaging and social networking. The suit called for Facebook to be permanently prevented from further infringing on Yahoo’s patents and to pay damages and legal fees. Facebook responded with counterclaims that Yahoo infringes upon 10 of the social network’s own patents.

Since then, Facebook expanded its patent portfolio by buying about 750 patents from IBM and another 650 from Microsoft. It also has deals to license hundreds more patents that weren’t for sale. Scott Thompson, Yahoo’s CEO at the time the original lawsuit was filed, has since resigned after failing to correct inaccuracies in his academic history.

AllThingsD sources previously suggested that key terms of the agreement include a cross-licensing agreement and an even deeper integration of Facebook into Yahoo and vice versa.

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