Facebook Files Yahoo Lawsuit Counterclaim

Facebook Inc., operator of the world’s biggest social-networking site, accused Yahoo! Inc. of infringing 10 patents through its home page and Flickr photo- sharing service and in ads displayed throughout its site.

Facebook, which was sued by Yahoo for patent infringement last month, made the counterclaims yesterday in a federal court filing in San Francisco. Facebook denied stealing Yahoo’s technology, saying its rival’s patents are either invalid or its claims legally barred and the lawsuit should be dismissed.

“While we are asserting patent claims of our own, we do so in response to Yahoo’s shortsighted decision to attack one of its partners and prioritize litigation over innovation,” Ted Ullyot, Facebook’s general counsel, said in an e-mail.

Yahoo, owner of the most popular U.S. Internet portal, has been struggling to keep pace with Google Inc. (GOOG) (GOOG) and Facebook, which have lured away users and ad dollars. Facebook filed for an initial public offering in February that may value the business at $75 billion to $100 billion, people familiar with matter have said.

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