Three threats to Mark Zuckerberg, owner of Facebook

13 Dec 2010 4:06 AM Judicial twists round the rights to company Facebook have laid down in a basis of a film of David Fincher In 20 years becoming the youngest billionaire, the founder of social network Facebook Mark Zuckerberg as it is fairly told in a film slogan about it, should get enemies. Proprietary rights on the shares of company, which cost today approximately in $15 billion, have appeared a subject of several proceedings at once, and two processes have laid down in a basis of a plot of the film "Social network" which David Fincher released recently.  Among Mark Zukerberg’s opponents in the American courts there were the different people - the sportsmen-oarsmen supporting an Olympic team of the USA, his best friend and the first investor, and also the businessman charged of swindle. Olympians Cameron and Tyler Winklevoss This dispute has begun in the beginning of 2004. Students of Harward, sportsmen-twins Cameron and Tyler Winklevoss which intend to act on the Olympic Games 2912 in London, and the partner of brothers of Divya Narendra have considered that Zukerberg has stolen their idea of social network ConnectU, and also codes for this site. The site of Winklevoss eas planed as on-line  version of exclusive club of the Harward students. Zukerberg has been invited in the project as the programmer, however, as claimants in court confirmed, used this possibility only for familiarizing with startup details. Constantly referring in e-mails to work at university and various unforeseen circumstances, Zukerberg delayed work on a site. And in some weeks after the first conversation with brothers he registered the domain and has started own site (domain name TheFacebook.com) for students of the Harward university. Zukerberg rejected charges in a fraud behavior and theft of idea, insisting that his project – absolutely independent and hasn't something in common with the idea of Winklevoss. Facebook even has submitted the counterclaim against twins, charging them of abusing justice.  Trials have begun in the Harward disciplinary commission, and then have reached courts of staff and federal courts. They became complicated among other that were proceeding in courts of different jurisdictions – in California and Massachusetts. After long trials which have come to the end only in 2008  litigants have signed the accord and satisfaction, provided payment of compensation for Winklevoss and transfer them share in Facebook.   The judge of Federal court of Northern district of California James Ware has confirmed conditions of this accord and satisfaction and has prohibited to litigants to disclose them. However, according to sources in legal circles, compensation was $65 million. Charge with swindle with own shares (overestimating of price of the assets during negotiations on dispute settlement) court hasn't supported. The friend Eduardo Saverin Eduardo Saverin also has felt cheated.  Zukerberg has got acquainted with him during the first year of studing in Harward. Saverin was the first to whom Zukerberg has applied for investments into the project. Eduardo Saverin has enclosed $15 thousand which were necessary on start of the Facebook – for payment of servers, works of programmers and office in a Silicon Valley. Their friendship ended when in April, 2005 Saverin has received from Facebook the notice of the change in the proportions of shareholders after attraction of new investors. Eduardo Saverin’s share has been washed away at first to 24, and then to microscopic 0,03 %. The decisions necessary for carrying out of such issue, Zukerberg could accept, as according to the agreement between shareholders signed in October, 2004, Saverin, having received 30 % of shares of Facebook, has transferred to Zukerbergu not only all rights to intellectual property, but also the right of individual decision making. As a result the share of Saverin in the company gradually decreased, and in 2005 when it has been issued 9 million more shares, has been washed away to insignificant 0,03 %. And in May, 2005 Zukerberg has officially dismissed Saverin from the company, and the mention of his name as one of social network founders has disappeared from Facebook website. Whatever became the reason of such succession of events – a carelessness of Saverin at signing of the joint-stock agreement or insidiousness of Zukerberg, the result was predicted: litigants have met in court. Facebook has tried to prove that the joint-stock agreement signed in October, 2004, is valid. In return Severin charged Zukerberg  of  wasting for the personal needs money invested to the company. However as a result of long negotiations litigants signed agreement with conditions they can’t disclose. Anyway, Facebook has returned Severin's name to the list of founders of the company. It is known also that now he posesses 5 % of shares of company which estimated in $1,1 billion. So  investment of $15000 have appeared one of the most successful in the history of investments. Paul Ceglia. The swindler? One more claim, concerning ownerships of Facebook, is submitted by businessman Paul Ceglia. He demands to recognize his rights to 84 % of the company, asserting that in 2003 was signed an agreement (the copy has been presented to Federal court of the western district of New York) according to which he as the investor of the project "The Face book" has invested in it $1000. Paul Ceglia has got rights to 50 % of incomes and, besides, for a delay of terms of start of the project should, since January, 1st, 2004 and till the moment of its real start (on February, 4th, 2004), in addition to receive on 1 % of business per every day of delay. Thus, on his opinion, he ows 84 % of Facebook. Zukerberg’s attorney Lisa Simpson has confirmed that her client has signed in 2003 the agreement with Paul Ceglia and really worked on it as the programmer. However she denies that Paul Ceglia has got any rights on nonexistent at that time project Facebook. Paul Ceglia explaining, why earlier about this contract there was no speech and why only in 2010 he has submitted the claim to Zukerberg, has told that he has simply forgotten about the contract. It was found only after charges in swindle — in October, 2009. According to Paul Ceglia, he began to study carefully old documents and has found among them contract 2003 with Zukerberg. Movie about Facebook to be contined... "Social network" comes to an end on signing  of confidential agreements and satisfactions by litigants of two processes (with Winklevoss and Saverien). In the USA producers like to shoot films about loud legal procedures, therefore it is not excluded that this history will inspire someone on a new screen version of events from life of Facebook founder. At least, there is enough new information for continuation of the scenario. Winklevoss and their partner in the spring of 2010 have challenged in a court, the agreement and satisfaction. In the complaint they insist that during negotiations on dispute settlement Facebook has misled them concerning cost of the company and, hence, the judgement should be reviewed. In interview they also have told that still carry on negotiations with Facebook for conditions of definitive dispute settlement. Dispute trial between  Paul Ceglia and Zukerberg is in a stage of determination of jurisdiction. Paul Ceglia try to return case to the court of the State of New York after Zukerberg has achieved its transfer to Federal court of the Western district of New York.
1 2 3 4 5 Published in Business by Celvin | Views: 1459 | Rating: 0.0/0

Total comments: 1
0   1 Kailee   (23 Oct 2011 6:57 PM) No complaints on this end, smpily a good piece.

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