Chris Posted June 14, 2004 Report Share Posted June 14, 2004 Google's founders have plenty to be happy about these days, with growing profits and a solid ranking as most popular search engine on the planet. But as they prepare to launch what is expected to be the most sought-after initial stock offering of the year, an assortment of pending lawsuits threaten Google's good fortune. In federal, state and foreign courts, judges are weighing several suits, including one pursued by arch-rival Yahoo, charging Google with patent and trademark infringements tied to sales of search-related advertising. If plaintiffs prevail, observers say, it will hamper Google's ability to pursue what has thus far been its biggest source of profits. "Their revenue model is becoming more and more based on advertising, and if there's a limit on how they can do the advertising, that would have an adverse impact on their business," said Frank Bernstein, a partner at the law firm Sughrue Mion. Perhaps the most serious courtroom threat facing Google is a suit filed in 2002 by Overture Services, now a unit of Yahoo, alleging infringement of a patent on a system for auctioning placement in search engine results. In its complaint, Overture charges that Google was aware of the patent, "when it introduced search results ordered, at least on part, on bids submitted by website promoters." The suit is currently pending before Judge Jeffrey White in federal court in San Francisco. White is expected any day to issue a Markman ruling, which defines key terms included in the patent. Although White's ruling won't determine whether Google has infringed on the patent, the way he defines disputed phrases like "search result list" will influence Overture's likelihood of prevailing.More | Here Quote Link to comment Share on other sites More sharing options...
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