CTV News | Lawsuit accuses Facebook founder of stealing idea

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Lawsuit accuses Facebook founder of stealing idea

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CTV Newsnet: Kris Abel on the battle over Facebook
Canada AM: Cameron and Tyler Winklevoss

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CTV.ca News Staff

Date: Mon. Jul. 23 2007 1:17 PM ET

The founder of social networking website Facebook.com, Mark Zuckerberg, will be in court this week defending an accusation that he stole the idea for the site from three of his former Harvard classmates.

Billions of dollars and one of the most coveted pieces of Internet property will be at stake when Zuckerberg, described as "the next Steve Jobs," faces off against his accusers in a courtroom on Wednesday.

Facebook has been described as the most sophisticated social networking website on the Internet, growing with 150,000 new members every day.

The lawsuit, which was originally filed in 2004, accuses the 23-year-old creator of stealing the idea, the source code and the business plan for Facebook.

Zuckerberg's former Harvard classmates allege he snatched the idea from under their noses when they recruited the Web wunderkind to work as a programmer for their own social networking site, now called ConnectU.com.

The three former Harvard students, Cameron Winklevoss, his twin brother Tyler, and Divya Narendra, allege Zuckerberg deliberately stalled their site's progress so that he could set up Facebook six months ahead.

Court papers say Zuckerberg registered thefacebook.com on Jan. 11, 2004 three days after sending his accusers an email promising to deliver a "functioning Web site" for their project.

The claimants say it was a significant time advantage in the breakneck speed in the Internet world and they are seeking control of Facebook and its assets, as well as damages.

The two sites are so similar that ConnectU launched a service that allows Facebook members to upload their profiles straight on to ConnectU. But ConnectU's breadth is only a fraction of the size of its competitor.

ConnectU carries a message from its founders that reads: "Over the course of development, we've had our ups and downs. We've cycled through several programmers, even one who stole our ideas to create a competing site, without informing us of his intentions. But we've been troupers. At first we were devastated and climbed into a bottle of Jack Daniel's for a bit, but eventually emerged with a bad headache and renewed optimism. We weren't going to lie down and get walked over like this. So we regrouped, reassessed, and the end result is ConnectU, albeit a couple of months late."

The suit alleges copyright infringement, stealing trade secrets, fraud and breach of contract.

Zuckerberg denies any wrongdoing and wants the case dismissed.

Such accusations are common, CTV's technology expert Kris Abel said.

"When it comes to disputes of intellectual property, it's very common, especially in software companies. Every major company from Microsoft to Apple to even Research in Motion have had to put with lawsuits over who came up with the idea first," Abel told CTV Newsnet.

In court papers, Facebook representatives said: "Only one of (the students) had an idea significant enough to build a great company. That one person was Mark Zuckerberg."

Zuckerberg has already turned down half a dozen offers for the site and says he wants the site to remain private.

"It's already rumoured they turned down an offer outright by Yahoo for $1 billion. Rumours this week are that Microsoft is circling. They're hoping to purchase it for anywhere between $6 to $8 billion," Abel said.

But some have speculated he is biding his time as he waits for a more lucrative offer, although a sale could be difficult if the lawsuit is still dogging his site.

Please Add Comments( )

T. R.
said
0 0

Too many pups making too much money over things that don't make the world a better place. What do they do with their funds to reduce global warming, improve access to education, reduce human impacts on the planet, etc., encourage more physical fitness? All we ever hear about is how much money they have but not if they do any good with it.


Robert White
said
0 0

I can't speak for Mr. Zuckerberg, but there are plenty of young people who have cashed in on the technical age and are doing lots with their money to make the world a better place. Selflessness is not as contagious as yawning.


Frank Buchan
said
0 0

As a programmer, knowing both sites and the background, it will be a shame if the lawyers prevent the trio from taking back what was almost definitely theirs. If I work for any client, I have an ethical responsibility not to compete, and this fellow gives our whole industry a bad name. But then he is rich, so being crooked wouldn't really be an issue, I suppose.


Eeto
said
0 0

"A better place" is very subjective where we all have different ideas what is considered "a better place". I could have said that the money is used to make Facebook a good place for us to interact, and closer connection with our old friends which we would normally not do in conventional ways.

Socializing and improved communication should be considered by most "a good thing" for the mankind isnt it?


Eric A.
said
0 0

While many people are re-hashing old connections on Facebook, I'm losing friends because of it...All everyone wants to talk about is Facebook and that all they spend their free time on now, cause they have to manage their 'profile'. What ever happend to 'hangin out'? One day I'll be rich and powerful because I'll be the only one left who knows how to interact in person.


Jill
said
0 0

Can anyone explain to me how Facebook makes that much money? Last time I checked I don't pay anything to go on it. I don't see any ads, though maybe I just missed them. The only thing I see making money is those silly little gifts (and I have to wonder why anyone would pay a dollar for a digital picture, especially since there's now an application called freegifts)


L.W.
said
0 0

What people don't realize is that Facebook has applications that get people involved in causes and also it provides a way for people to donate to these causes as well. I don't know what Zuckerberg is doing with his money, but I know that he is providing a place for other people to become more aware and contribute.


Ryan
said
0 0

Another false ecomony business. Guys like Zuckerberg are making money of the users' personal information (Data mining)! That's the reason why I don't participate on that website!


Jon
said
0 0

Facebook does have ads. The minute you log on there's an ad on the left, and companies also sponsor ads in the NewsFeed (I saw one for Jansport yesterday). Zuckerburg announced in his f8 speech that over 50% of users return to the site daily, where other companies don't even come remotely close to this number, and with millions and millions of users this is a huge market for any company looking to reach this demographic.

Also I agree with both Eeto and T.R. Yeah it's a better place in that friendships may become stronger, but as much as I enjoy playing the Devil's advocate as the next guy, T.R. is right in that we never see these huge companies using any of their vast amounts of excess money helping humanitarian causes.

This is not to say that they don't, but it's one situation where I think it's almost better for companies (and famous people) to brag about it and toot their own horn, because even though that's against the intended selfless nature behind it, it's still helping out and raising awareness.


Phillip Craig
said
0 0

First of all, every Idea comes from somewhere! If you know anything about the history of technology, you know that the combination of old ideas in an original manner is usually how innovation comes about. Now a days, I suppose It's a fine line between technological evolution & simple theft of Intellectual property.


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