Facebook's news feed patent may be 'game-changer'

Computerworld - Facebook this week received Patent No. 7,669,123 for the technology that supports streaming of social network news feeds, raising questions over how the company will wield this new power.

Having the patent means Facebook could potentially do battle with any other social networking site that uses news feed technology. Analysts say Facebook could use the patent as leverage with rival sites, forcing competitors, for example, to license the technology or stop using it.

For now, Facebook's rivals will have to wait and see.

"Assuming good execution, this could be a gold mine," said Rob Enderle, principal analyst at Enderle Group. "Facebook has the potential to gain the kind of power that Microsoft and Google enjoy. They have a long and dangerous path to get there, but with this, they are getting closer to that potential.... This is one of those events that can truly define an emerging company and change it from an interesting niche player to a major industry power."

A news feed is a format used to provide users with real-time content updates. Facebook users, for instance, receive a feed filled with updates of the messages, photos and videos posted by the people they have "friended." The feed on microblogging site Twitter is a constantly updated list of tweets from people the user is following.

News feeds are the bread and butter of most, if not all, social networking sites. They allow people to stay up to date with friends, colleagues and family; they represent the backbone of social networking.

Facebook's patent has been in the works for a long time. The company applied for it in 2006, before Twitter even came into being.

Ezra Gottheil, an analyst at Technology Business Research, said that, with this patent in hand, Facebook might be able to legally pursue rivals that are using this news feed technology. The company could push for its rivals to stop using the technology or to buy a license from Facebook to continue using it.

A lot will depend on the specific description of the technology in the patent and how closely it resembles the technology that other sites are using.

"The launch of News Feed in 2006 was a pivotal moment in Facebook's history and changed the way millions of people consumed and discovered information on the site," said Brandee Barker, a Facebook spokesperson in an e-mail to Computerworld. "We're humbled by the growth and adoption of News Feed over time and pleased with being awarded the patent."

Barker declined to comment on what Facebook will do now that it has the patent.

Karsten Weide, an analyst at IDC, said the patent could affect a lot of companies, including Twitter, Yahoo and Google with its new Buzz social hub. All of them depend on streaming feeds.

"The devil is in the details," Weide said. "Everything depends on what exactly the patent covers, whether Facebook is interested in enforcing a competitive advantage or licensing fees, how enforceable it actually is, and how much resistance the others would put up. Most likely, Facebook will use it as a bargaining chip in various partnership negotiations."

He added that forcing companies to stop using the functionality or to try to require them pay licensing fees might be more than Facebook wants to bite off.

"It would be unwise to act heavy-handedly with partners," Weide said. "It would create a lot of bad blood in the industry and bad PR. But then, Facebook's attention to PR consequences has been lacking at times."

Enderle said this could be a game-changer for Facebook. Now it's just a matter of waiting to see what the company does with its new patent.

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin or subscribe to Sharon's RSS feed . Her e-mail address is sgaudin@computerworld.com.

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