If you don’t want to read through the entire Reuter’s article, simply put: Bing (try Bing without it’s background) will replace Yahoo’s search and Microsoft’s Adcenter will be used to show ads on the search pages. Microsoft stands to gain from the increased exposure, Yahoo stands to gain from the 88% revenue sharing deal that favours Yahoo. The deal is expected to come through by early 2010.

All eyes are now on Bing, as for me, I’ve replaced the default search engine on Firefox from Google to Bing – it’s a search engine that’s worth giving a chance.

Update: WSJ has done a better job of summing up the terms of the agreement here. Excerpts:

The key terms of the agreement are as follows:

– The term of the agreement is 10 years;

– Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing Web search platforms;

– Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites. Yahoo! will continue to use its technology and data in other areas of its business such as enhancing display advertising technology;

– Yahoo! will become the exclusive worldwide relationship sales force  for both companies’ premium search advertisers. Self-serve advertising  for both companies will be fulfilled by Microsoft’s AdCenter platform,  and prices for all search ads will continue to be set by AdCenter’s automated auction process;

– Each company will maintain its own separate display advertising  business and sales force;

– Yahoo! will innovate and “own” the user experience on Yahoo!  properties, including the user experience for search, even though it  will be powered by Microsoft technology;

– Microsoft will compensate Yahoo! through a revenue sharing agreement  on traffic generated on Yahoo!’s network of both owned and operated  (O&O) and affiliate sites;

– Microsoft will pay traffic acquisition costs (TAC) to Yahoo! at an initial rate of 88 percent of search revenue generated on Yahoo!’s O&O sites during the first five years of the agreement; and

– Yahoo! will continue to syndicate its existing search affiliate partnerships.

– Microsoft will guarantee Yahoo!’s O&O revenue per search (RPS) in each country for the first 18 months following initial implementation in  that country;

– At full implementation (expected to occur within 24 months following regulatory approval), Yahoo! estimates, based on current levels of revenue and current operating expenses, that this agreement will provide a benefit to annual GAAP operating income of approximately $500 million and capital expenditure savings of approximately $200 million. Yahoo! also estimates that this agreement will provide a benefit to annual operating cash flow of approximately $275 million; and

– The agreement protects consumer privacy by limiting the data shared between the companies to the minimum necessary to operate and improve the combined search platform, and restricts the use of search data shared between the companies. The agreement maintains the industry-leading privacy practices that each company follows today.

The agreement does not cover each company’s Web properties and products, email, instant messaging, display advertising, or any other aspect of the companies’ businesses. In those areas, the companies will continue to compete vigorously.

What’s in it for us?

Well, Netscape is one of the few social news sites that let you spam add your own articles. And with not many people knowing about it, you can hit the front page of Netscape with as few as 20 votes! A front page article doesn’t bring in much visitors compared to what Digg does, but it provides a very strong PR7 backlink.

Personally, I’ve not used them much and have submitted only my free phpBB3 forum hosting site, HostingDelivered. I’ve also voted on a few articles I thought that were good – an interesting fact that I observed was that my submission at Netscape used to be listed ABOVE my own site – that was during its early stages though, HostingDelivered is consistently listed above it now – but you can imagine the additional visitors that reach you from the Netscape link that people run into when they make a search.

In fact, there was a time when my site was in the sandbox (more on that later) which plummeted it to the 312th page and I still used to get visitors from my submission at Netscape – although they weren’t as much as I receive now, those few visitors helped keep me sane.

Its also good to know that in keeping with the mature audience that uses Netscape, they’ve selected a name that’s not mis-spelled. It must have cost them quite an amount, but I’m sure its worth it. If you haven’t already signed up at Netscape, hurry up if you want to see how it is now before they move to Propeller.

American Blind & Wallpaper Factory Inc., a reseller of window blinds, had charged that Google abuses trademarks by allowing rivals of the company to buy ads that appear when consumers search the Web for information on that business.

American Blind & Wallpaper were trendsetters when they sued Google Inc almost four years ago inspiring many other small fish to take on the search engine giant. This story though seems to conflict with the fable of David and Goliath with Goliath emerging the victor.

“Google has not made and has not agreed to make any payment to (American Blinds & Wallpaper) of any kind whatsoever, whether in cash, credit or otherwise, and that Google has not agreed to change its trademark policies or any exception to how it applies its trademark policies,” the agreement said.

To salvage some pride for themselves,

American Blinds agreed not to sue Google “so long as Google does not make a material change in its AdWords trademark policy that adversely affects (American Blinds & Wallpaper Factory.” It also agreed not to assist other parties in suing Google.

Some respite that is! Google Inc seems to be making a rather strong statement to people challenging their main livelihood – AdWords. It goes without saying that the future of the other Davids who jumped onto the same courtroom as Google inspired by American Blind is looking rather bleak – whether they will pull out like American Blind did or soldier on for their cause remains to be seen.