• Home
  • News
  • Coins2Day 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

The baffling claim against Facebook

By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
September 17, 2012, 1:39 PM ET

FORTUNE — Eolas Technologies and the University of California filed a lawsuit this week against Facebook (FB), Wal-Mart (WMT), and Disney (DIS), apparently based in part on a patent that a court had previously ruled Eolas could no longer use to claim infringement.

Eolas spent most of the 2000s suing Microsoft (MSFT) in an ultimately successful patent complaint. (Microsoft settled in 2007.) Then it sued a multitude of companies including Google (GOOG), Yahoo (YHOO), Amazon (AMZN), J.C. Penney (JCP), Perot Systems, Blockbuster, eBay (EBAY), Citigroup (C) and several others. Most settled, but Google, Yahoo, Amazon and J.C. Penney stayed firm and ultimately beat back the lawsuit.

The term “patent troll” might sound derogatory, but Eolas pretty much fits the commonly understood definition. It developed some technologies for interactive Web processes back in the early 90s and since then has spent most of its time and money filing patent lawsuits based on those technologies. The idea is to file lawsuits and hope companies will either agree to license the technologies or pay a settlement. Because of the time and money involved in defending lawsuits, many companies simply cave, whether or not they feel the claims have merit.

MORE: An audience with the King of the Patent Trolls

The new lawsuit claims that the three companies are infringing on four patents on technologies enabling interactivity and embedding of media. Eolas was founded to protect patents on technologies Doyle and others had developed at the University of California, San Francisco. The university issued a statement that it “should be paid a fair value when a third party exploits [a] university asset for profit.” A Facebook spokesman told Reuters the lawsuit is without merit and the company “will right it vigorously.” Eolas has not yet replied to a request for comment by Coins2Day.com.

A Texas jury in February declared two of the four patents invalid in February. That led TechDirt’s Michael Masnick to proclaim: “The Web is saved.” Not quite yet, apparently. It’s unclear why Eolas and the University are nevertheless filing a lawsuit based in part on patents that have been ruled invalid.

About the Author
By Dan Mitchell
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Coins2Day 500
  • Global 500
  • Coins2Day 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Coins2Day Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Coins2Day Brand Studio
  • Coins2Day Analytics
  • Coins2Day Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Coins2Day
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Coins2Day Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Coins2Day Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.