Facebook and Yahoo agree to settle patent dispute

Facebook and Yahoo have agreed to settle a patent dispute, averting a potentially lengthy battle over the technology running two of the internet’s most popular destinations.

In dropping the lawsuits, the companies agreed to license their patents to each other. They are also agreeing to an advertising alliance that expands their existing partnership.

The advertising alliance could help Yahoo recover some of the revenue it has been losing as marketers shift more of their spending to a larger and more engaged audience on Facebook’s social network.