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Yahoo Sues Facebook

YAHOO FLAGS FACEBOOK: Yahoo sued Facebook for violating at least 10 of its patents relating to Internet ads in federal court in San Jose today. The search giant says that its patents cover systems for customizing pages based on a user’s preferences, placing ads on a page based on click-through, managing the display of a user’s social network information without violating his or her privacy, and enabling an instant message user to exchange messages with an email user. Facebook says it’s “disappointed that Yahoo, a longtime business partner and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation.” The company vows to defend itself “vigorously.” As Facebook prepares for a $5 billion IPO, Yahoo is reportedly weighing a massive layoff under new CEO Scott Thompson. (3/12p)

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