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Google And Yahoo! Settle Patent Dispute

by Glen Shapiro, LawAndTax-News.com, New York

18 August 2004

It emerged this week that Google and Yahoo! have settled a patent dispute which posed a serious legal threat to the former's online search business.

In a lawsuit filed two years ago, Yahoo! alleged that its former ally had infringed on its patented technology for matching adverts with internet search results.

In a filing with the SEC on Monday, Google announced that the settlement agreement, which is costing it 2.7 million shares (or around $328 million) will cause it to report a loss in the current quarter.

Under the terms of the settlement agreement, Yahoo! has agreed to license the disputed technology to Google.

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