The patent in question was filed by WhoGlue on May 9, 2002 and granted on July 17, 2007. The patent very broadly covers “an information management system, method and computer program code and means for facilitating communications between user members of an online network.” If such a patent were upheld, the cultural changes social networking is enabling could potentially come to a screaming halt. Facebook predictably sees “no merit to this suit, and we will fight it vigorously.”
In their defense, WhoGlue says that they “didn’t patent something that we thought would be an opportunity to license,” instead they claim the system is “core to our business.” The patent appears to cover management of public and private information in interactions on a website. WhoGlue’s apparent goal is “to be the technology enabler behind the scenes for member-based organizations,” and they are so dedicated to this mission that they put this patent up for auction just a year after it was awarded. Current clients of WhoGlue include a handful of Alumni Associations, but it is not clear how taking down Facebook will advance the company’s “fundamental belief that technology is most effective when it strengthens an existing process or relationship.” It appears that they are trying to use their technology to weaken existing relationships for Facebook’s 300 million members.
This is certainly not the first case of internet patents gone awry. Amazon was famously criticized back in 2000 for its patent holdings when it tried to sue Barnes and Noble for infringing Amazon’s 1-click buy patent. That suit settled out of court with undisclosed terms. WhoGlue’s lawsuit against Facebook will likely settle out of court as well because of the cost of patent lawsuits. Facebook’s valuation and popularity aside, it remains unclear how much WhoGlue should expect to receive in a settlement from a company that, arguably until recently, was struggling, but any amount received is likely to be a windfall for the less than 5 person company.