Legal News

NY man's Facebook ownership claim lands in court

By (Breaking Legal News)

Facebook will try to get a New York man's claim for majority ownership of the website thrown out of court, attorneys for the social networking site said Tuesday.

A complaint by Paul Ceglia of Wellsville claims that a 7-year-old contract he signed with Facebook founder Mark Zuckerberg for software development entitles him to 84 percent of the company.

"No one's ever said it's not his signature or it's a fake contract," Ceglia attorney Terrence Connors said during a federal court hearing in Buffalo.

Connors said the two men met when Zuckerberg, then a Harvard University freshman, responded to an ad Ceglia had posted on Craigslist looking for someone to develop software for a street-mapping database he was creating.

Zuckerberg offered to take on Ceglia's project for $1,000, Connors said, and then told Ceglia about a project of his own, a kind of online yearbook for Harvard students that he wanted to expand.

Ceglia said he gave Zuckerberg another $1,000 to continue work on Zuckerberg's "The Face Book," with the condition that Ceglia would own a 50 percent interest in the software and business if it expanded. The percentage grew to 84 percent based on a clause that added a percentage point for each day the project went past its Jan. 1, 2004, due date.

Zuckerberg's undertaking "at that time was a fledgling project," Connors said. "Who knew it would turn into what it has turned into today."

Facebook recently celebrated its 500 millionth user, Connors said.

Full post as published by Breaking Legal News on July 21, 2010 (boomark / email).