Wall Street Wonderland

The good, the bad and the unspeakably ugly and everything in between, so help us!

Wednesday, July 25, 2007

Did Facebook founder steal the idea?

Mark Zuckerberg is being sued by the creators of a rival networking site that claims he stole their idea and code

Mark Zuckerberg, the 23-year-old founder of Facebook, will today be accused of stealing the idea for his enormously popular social networking site from a rival website. Mr Zuckerberg is being for sued for stealing the source code – and design – of Facebook from ConnectU.com, a similar, university-based social network which he worked for briefly as a programmer four years ago.

At a district court in Boston, Massachusetts, ConnectU's founders, who were in the same year at Harvard as Mr Zuckerberg, will demand that Facebook be shut down and that control of the site – and its profits – be handed over to them.

Cameron and Tyler Winklevoss, and their business partner Divya Narendra claim that Mr Zuckerberg stole not only "the basic idea" of Facebook from ConnectU, but also its specific code which, they say, was "proprietary and confidential."

Their action alleges copyright infringement, misappropriation of trade secrets, and breach of contract. The case comes at an inopportune time for Facebook, which last year reportedly turned down an offer as high as $1 billion from Yahoo! and is widely considered to be on the verge of listing on the stock market.

Accusations that the claimants are being opportunistic appear, however, to be misplaced. The lawsuit was first brought in August 2004, when Facebook had only 200,000 registered users, and it is only because of procedural delays that it has not been heard until now.

According to an article in the Stanford Daily three years ago, Mr Zuckerberg began working with the team from ConnectU.com in November 2003, doing coding, attending meetings and sending e-mails. He then left the site, which at the time was called Harvard Connection, to develop his own ideas, and three months later launched Facebook, which the plaintiffs claim took away a valuable business opportunity.

Mr Zuckerberg has admitted that he did six hours of coding for ConnectU on a voluntary basis, but said that he thought the site was a "personals page" and not a social networking site.

Mr Winklevoss disagreed, telling the paper: "It was clear to him what we wanted. He stalled us for months while he worked on his own idea, which he launched in February as an original idea."

http://technology.timesonline.co.uk/tol/news/tech_and_web/the_web/article2125952.ece

0 Comments:

Post a Comment

<< Home