Facebook Hit With 3 Lawsuits In One Week

-Law Icon-The past week has been a tough one for Facebook. The site was rendered inaccessible for over 150,000 users for over a week (which has since been fixed), and now the company has been hit with its third lawsuit. One a positive note, the company still appears to be adding users at a rapid pace, which means that more users were added in the past week than users who were not able to access the site.

A New Beacon Lawsuit

Just two weeks ago, Facebook settled a class action lawsuit against them regarding Facebook Beacon which resulted in a $9.5 million settlement fund. With a bunch of cash in the bank, it appears that lawsuits continue to come out of the woodwork. Tonight’s lawsuit is from a group of consumers who “allege that the Beacon program violated the 1988 Video Privacy Protection Act by sharing information about their [Blockbuster] movie rentals and purchases without first obtaining their written consent. ”

As with all other suits, Facebook is stating that “This suit is without merit and we will fight it vigorously.” Given that the company is now cash flow positive, it’s not surprising that one lawsuit is showing up after the other. The group that’s now suing Facebook also recently “won a significant ruling against Blockbuster stemming from its participation in Beacon” according to MediaPost.

Two Patent Suits

Last week Facebook was also sued by Samurai Networks and Phoenix Media in separate patent-related suits. According to Bloomberg, “Mekiki Co., which runs the samuraitime.com network site, claims Facebook uses its ‘fundamental and patented social networking intellectual property,’ including ways to identify new ‘friends’ through existing contacts.”

The second suit, “alleges that Facebook’s ‘computer network and method of creating and sharing a personal page’ is covered by one or more claims of a patent issued by the US Patent and Trademark Office on June 26, 2001, to Tele-Publishing.” While it’s unknown if either of these are legitimate cases, it’s clear that Facebook is increasingly becoming a target of patent related suits.

WhoGlue Sues Facebook

A fourth suit was filed over three weeks ago, as reported by the Silicon Valley Business Journal. In this suit, WhoGlue Inc. claims that “Facebook violated a patent awarded to WhoGlue in 2007 for an ‘information management system’ to control personal information as human networks and technology increasingly mesh.”

The Suits Keep Coming

My guess is that we’ll see numerous companies jump on the lawsuit bandwagon over the coming months as they look to profit from Facebook’s success. With money in the bank, Facebook has the ability to pay up large settlements which is most likely the primary reason behind many of these suits. It will be interesting to see how all of these play out.

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6 Comments »

  1. great, they can fight lawsuits and throw money at lawyers instead of putting those resources into facebook. wonderful.

    Comment by Facebook User — October 14, 2009 @ 6:57 pm

  2. this blog is cool, btw. i like it a lot.

    Comment by Facebook User — October 14, 2009 @ 6:58 pm

  3. My profile was deactivated on Facebook without warning after years of being on Facebook! I do events within the lesbian community in Johannesburg South Africa. I reported a user for creating a profile with my surname who suddenly climbed out the woodwork and ran the same events as me, this person added me first. Friends also reported their profile yet this person remains on Facebook after being on there for less than one week and going to other people’s profiles and adding them yet I have been on there for years and I get deactivated without warning! I have charity groups, personal groups, photos collected over years yet they deactivate me with no warning! Surely being such a large social networking site they should ALSO protect again users that are maliciously reported?

    Comment by Natasha Quinn — April 17, 2010 @ 12:08 pm

  4. It's like a bunch of hyneas trying to take down a lion imho.

    Comment by Noone — October 8, 2010 @ 1:46 pm

  5. This post is different from what I read on most blog. And it have so many valuable things to learn.

    Comment by phoenix DUI — December 8, 2010 @ 11:07 am

  6. [...] patent-infringement lawsuit ended up leading to an acquisition, as relationship-management-software developer WhoGlue announced [...]

    Pingback by Facebook Acquires Company That Sued It, WhoGlue — November 29, 2011 @ 12:35 pm

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