The two companies convened in a series of negotiations in an attempt to reach an out-of-court settlement. Facebook was purportedly expected to propose an authorization in which Yahoo would turn a blind eye to months or years of patent use, thereby avoiding a lawsuit. The disputed patents (there are 10 in total) cover major components of Facebook's website, such as privacy settings, news feeds, targeted marketing and messaging.
With no settlement reached, Yahoo has sued Facebook for patent infringement. The lawsuit was filed on Monday in San Jose, California. The exact sum Yahoo is requesting in compensation is as yet unknown. But just the knowledge that Facebook's IPO is on the horizon makes Yahoo's timing look like anything but chance, especially considering how many years the firm has had to file suit.