Sources speaking to All Things D claim the lawsuit between Yahoo and Facebook, centered around patent infringement, almost has reached a resolution. Yahoo claims Facebook's entire social network model is based on Yahoo patents.
"Facebook's entire social network model, which allows users to create profiles for an connect with, among other things, persons and businesses, is based on Yahoo's panted social network technology," the company's lawsuit read March 12, 2012. Yahoo is a partner with Facebook.
All Thing D's source claims a settlement could arrive "within weeks." The negotiations will restore the relationship between the two companies, forgetting about Yahoo's claims and Facebook's counter-claim which said Yahoo infringed ten Facebook patents.
"The key terms being discussed, said sources, include a massive cross-licensing of patents between the Internet giant and the social networking kingpin and an even deeper integration of Facebook into Yahoo and vice versa," All Thing D added.
However, Facebook apparently won't support a huge cash outlay despite being willing to buy some of Yahoo's patents. That's despite the social networking company paying Microsoft $550 million to buy and license patents the company acquired from AOL.
Yahoo's case had been built on the potential of receiving billions of dollars in a payoff, which was the argument used by former Yahoo CEO Scott Thompson - who filed the lawsuit - to convince the board to go with the lawsuit. Thompson was ousted from his post due to falsely claiming he held a Computer Science degree.
According to All Things D, the departure means the board and interim CEO - Ross Levinsohn - have encouraged the talks. The tech site added the talks are more a "group effort" as a solution is sought.
"Facebook is also very motivated to get rid of the problem ... because its recent IPO has taken up a lion's share of the media and investor perception and attention. Sources said execs there hope that a successful settlement with Yahoo ... will return the focus to forward momentum by Facebook," All Things D also said.
Rumors suggested Facebook and Apple will collaborate on iOS 6, bringing integration of the social networking service across the mobile operating system.
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