Yahoo sues Google

[Brian Turner]

Google is the darling of the Internet and seemingly at the top of its game as it charges toward a public stock offering sometime this summer.

But the Mountain View company could be paying hundreds of millions of dollars to its Sunnyvale archrival, Yahoo, if it loses a little-noticed patent lawsuit unfolding in a San Jose courtroom.

The case pits Google against Overture Services, an Internet advertising company bought by Yahoo last year. Overture claims it patented an online bidding system for ads seven months before Google introduced a similar system.

Patent attorneys who have reviewed the suit said Overture's patent claims can't be easily dismissed.

``I think there is merit based on the breadth of the claims,'' said Dave Ashby, a patent attorney with the IP Strategy Group in Cupertino. ``I took a look at it and said, `Yep, Google does that. Yep, Google does that.' ''

A key ruling in the 2-year-old case -- which could determine whether the two sides settle or forge ahead to a jury trial -- is expected at any time, say patent attorneys who have reviewed the suit.

Advertising made up about 95 percent of Google's $1 billion in revenue last year. If the company loses the patent suit, it would probably have to pay damages, license technology from Yahoo or alter how it manages its ad system.


http://www.siliconvalley.com/mld/sil...ey/8836209.htm