Blue Calypso (BCYP): Enforcing Its Social Media Patent Portfolio
Published Thursday, April 11, 2013 by Ryan Allway
Blue Calypso Inc. (OTCBB: BCYP) is an innovator in digital social advertising, mobile content syndication and analytics, specializing in digital word-of-mouth marketing and advertising that harnesses the power of friend-to-friend referrals. Leveraging its patented platform and real-time analytics, corporate brands can achieve a measurable ROI against their social media investment, acquire high value customers and ultimately increase their sales.

A part of many technology companies’ value is its intellectual property. Blue Calypso’s patent portfolio contains two issued patents and three pending applications that should issue in 2013. Notably, the first of these patents was filed in December of 2004, before Facebook, Twitter, Pinterest, Groupon, LivingSocial and others became popular, and mobile texting became a regular occurrence.

The company has engaged Fish & Richardson, a global leader in patent protection, to help unlock the value in this patent portfolio by enforcing patent infringement claims against Groupon, Yelp, Foursquare, IZEA, and MyLikes.

Enforcing a Valuable Patent Portfolio

Blue Calypso’s two issued patents cover peer-to-peer advertising between mobile communication devices. In these method and system patents, among other things, an advertiser provides a profile they wish to target, a consumer provides specific attributes or demographic information, and bilateral matching occurs enabling the brand content to be shared by the consumer within their social media – a system that’s now commonly used by many social media companies.

Meanwhile, the company’s three pending applications encompass geo-location enabled coupon redemption and sharing rich media content. These patents combine to create a powerful patent portfolio. With many social media companies utilizing these methods and systems in their daily operations, there is a clear opportunity for patent enforcement.

On July 31, 2012, the company filed its first patent infringement complaint against Groupon Inc. (NASDAQ: GRPN) for infringing on its patents 7,664,516 and 8,155,679. Similar patent infringement complaints were filed on August 24, 2012, October 17, 2012, and November 6, 2012 against Living Social, Inc., Yelp Inc. (NYSE: YELP), IZEA Inc. (OTCQB: IZEA), MyLikes and Foursquare, respectively, setting the stage for potentially significant licensing revenues down the road.

Importance of the Upcoming Markman Hearing

On March 27, 2013, Blue Calypso announced that its patent infringement lawsuit filed on August 24, 2012 against LivingSocial has resulted in a Claim Construction Hearing – or “Markman” hearing – scheduled for August 27, 2013. [1] These hearings can be an important part of a patent case and are designed to determine the scope of the claims in the asserted patents, in other words, the metes and bounds of the claims that will be presented to the jury.

Looking at recent cases, Markman hearings have had a strong impact on other technology companies’ intellectual property portfolios including Vringo Inc.’s (NYSE MKT: VRNG) in its case against Google Inc. (NASDAQ: GOOG) and VirnetX Holding Corporation’s (NYSE MKT: VHC) in its case against Microsoft Corporation (NASDAQ: MSFT).

Unique Investment Opportunity

Investors may have a unique opportunity in Blue Calypso Inc. (OTCBB: BCYP), as it continues to build its business and moves to protect that business through enforcement of its patents against competitors in the social media space. With an upcoming Markman hearing in August of this year in the case against LivingSocial and another Markman hearing in December in the cases against the remaining defendants acting as potential catalysts, investors should be watching Blue Calypso closely.

For more information, see the following resources:

Company Website