Welcome to WebmasterWorld Guest from 184.108.40.206
Forum Moderators: goodroi
Even if it turns out down the road that Overture's patent is invalid, they still come out ahead.
But is Google Still fighting the Patent? If no, then that leaves all the third tier PPC engines in a tricky position? All were kinda waiting for the result of the Adwords Vs Overture battle. If Google is still challenging the patent, then I guess the move is only aimed for the IPO?
Actually, back in 2002, Findwhat filled suit against Overture [webmasterworld.com] challenging the validity of the 361 patent.
I'm not sure what the current status of that suit is, but I do know that the claims made by Findwhat were the same ones Google was using.
Findwhat and Google were arguing that Overture misrepresented the true date that they began using the technology covered by the 361 patent.
If that turns out to be true, the patent would be invalid. The fact that Yahoo took the cash now leads me to believe that it might very well be true. 350 million is certainly a lot of money, but it's peanuts compared to what they could get if they were to win a trademark infringement lawsuit.
plus they only issued stock...not exactly the same as cash.
Google's entire business is based on selling text ads. With no adsense, there's no way they can make that kind of money. Even if they had won, just defending it with the money at stake that tab could've easily run in the tens of $ millions. If they lost it would be a disaster.
The second dispute concerned the number of shares due under a branding and promotion agreement the two struck in June of 2000. In June 2003, Google says it issued around 1.2 million shares to Yahoo! under the terms of the warrant agreement, while Yahoo! contended it was entitled to more shares. Today's settlement sets aside this disagreement, as well.
Full article here: [clickz.com...]
They may still be issues relating to improvement patents on the PPC model such as bidding on clicks involving radius, autobidding or other local search patents so Google is not entirely in the clear, but getting Overture out of the way is a big step.
There are still several submarine patents out there that I am aware of that could cause a stir.
However, having a patent and being able to defend it are two completely different matters.
Let's wait until the IPO... then we'll see what it's really worth ... though having a stake in your competitor ( no matter how miniscule, or great ) certainly isn't a bad thing ... one has to question a company estimating an IPO price of $108+ a share - when it's more than 150 times annual per-share profit.
Sorry about the need to register to read the entire article, but I think the 'lead' alone makes a good point.
[edited by: bobothecat at 11:59 pm (utc) on Aug. 9, 2004]
Under terms of the settlement, Google will license a patent held by Overture Services, which Yahoo acquired last year.
Yes but at what price? Will Adsense user will have the same % of money for theirs ads?
It's not the same as TheStreet story :
Under the terms of the agreement, Overture will license certain of its patents to Google, and Google will issue additional shares to Yahoo! to settle the warrant dispute and the patent lawsuit, and in payment for the patent license.
A patent is usually licenced for a period of time? A bit confused by all of thoses news. That's will not help the IPO in my mind!
FindWhat is the big loser here. They are a much smaller company and were hoping that the Google legal team would win the case first and thus they would save themselves from a large legal battle.
An interesting side discussion is what impact this "cooperation" between Yahoo and Google will mean for us. Yahoo and Google seem to be headed in the general direction of partnership and less competition.