Facebook might call it a settlement, but there's no question that the gigantic social network is effectively surrendering to scrappy Austin, Texas mockery hub Lamebook. The two sides have ended a federal lawsuit with Lamebook keeping its name and Facebook-like logo, and Facebook slinking back to California.
Facebook can at least content itself with the knowledge that it got Lamebook to put a disclaimer "disavowing any affiliation with its Palo Alto counterpart," as PaidContent put it. But the lopsided settlement clearly a setback to Facebook's attempts to go after other "-book" sites. Facebook was arguably on the ropes every since it lost a bid to move the venue for the case out to California. And with an IPO, FTC inquiry, the Winklevii and a sleazy wood pellet salesman to deal with, Facebook might just have decided to focus its energies, and counsel, elsewhere.