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May 24, 2005

Yahoo vs. Findwhat: Keyword Advertising at Risk?

Posted by Adam Viener

A California judge recently declared a mistrial in the recent patent-infringement case between Yahoo and Findwhat. Yahoo has sued Findwhat testing Overture's original patent for search engine keyword advertising.

Yahoo / Overture's patent specifically targets the ability for advertisers to bid specific prices for specific rankings in search engines. Google side steps the patent with their Adrank formula which determines rank by bid price and click through rates. Findwhat however, uses overture's same model and is thereby at potential risk in this case.

After 3 years in the legal system already, The jury was hung, and the industry will have to wait for a future decision on this case. The next court date is scheduled for June 24th. Don't hold your breath for a quick resolution here; things can take a long time in our legal system.