This article Déjà Hoo: Yahoo Has Done the Pre-IPO Legal Shakedown Dance Before reminded me of this story back to 2002 while Google is about to be listed in stock exchange, Yahoo sued it infringing the patent owned by its subsidiary Overture. The patent is named “System and method for influencing a position on a search result list generated by a computer network search engine,” with US patent #6269361.
The mechanism of placing an advertiser’s ads according to its bidding price relative to other bidders in a search engine’s result page is the core operation model of Google AdWords. That also is the core business revenue of Google, even up till now.
The lawsuit settled with Google agreed to issue 2.7 million shares of common stock to Yahoo! in exchange for a perpetual license.
Now Yahoo! plays the same game against Facebook. Would Facebook react similarly to Google?