We see this all the time. The losing company would often sue the bigger company for damages due to patent infringement and we know it often does not help the ailing giant.
Now the stakes are being fought between the Social Media giant (Facebook). With things like News Feed, Sharing and advertising models being those that are in infringe with the patents that Yahoo had filed.
“Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology,” Yahoo’s lawsuit reads, in part.