Facebook's Patent Buy Could Force Yahoo To Settle

Law360, New York (March 22, 2012, 8:55 PM EDT) -- The trove of patents Facebook Inc. is buying from IBM Corp. were licensed to Yahoo Inc., a source told Law360 on Thursday, making the purchase a strong bargaining chip as the social media giant defends infringement litigation Yahoo launched earlier this month.

Yahoo's suit, filed March 12 in California federal court, accuses Facebook of infringing 10 patents related to advertising, privacy and social networking, and pointedly claims that the success of the leading social networking company is primarily based on its use of Yahoo's patented technology.

The purchase from IBM of 750 patents licensed to Yahoo gives Facebook an arsenal of...

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