Reportedly, Snap has clinched a deal that is worth of $7.7 million to obtain a geofilter patent from an Instagram rival Mobli that was established in 2011. After company’s S-1 filing IPO investment, $360 million out of $400 million company’s revenue is earned by selling its geo filters or location customized filters that attract the advertisers to get their hands on it. In a bid to add more fuel to this progress, the Snap buys geofilter patent so as to keep the pace with geofilters sale for advertisers.
This Instagram competitor Mobli that could not be successful in keeping neck to neck with its rival first launched the patent of geo filters back in 2012. Now, this venture has reportedly sold out its patent to Snap for $7.7 million this month. This is the record-breaking amount paid by any tech giant by far for such a patent. An email to Mobi’s shareholders confirmed the news of Snap buys geofilter patent and here is its screenshot.
According to what Techcrunch has reported that this attempt; Snap buys geofilter patent, is made by Snap in a bid to avoid any legal suit from Mobli in the future. But how we look into the matter is far beyond this. It is a matter of the fact that Snap buys the geofilter patent to be free from any legal notice of Mobli that actually owns this notion. But there seems another purpose to get the patent on an exchange of this much hefty amount. This patent appears to be a game plan to protect itself from slaughtered by Facebook and its almighty dollars. The long history of Facebook amid the mimicking strategy of the biggest social network giant. Every one after another SnapChat’s feature is being replicated by Facebook fearlessly. Be it SnapChat story’s layout clone appended to Facebook-owned Instagram or SnapChat iconic facial filters; Facebook never feels ashamed in copying every blockbuster feature pioneered by SnapChat.
This trade-off in which Snap buys geofilter patent will work as a shield against its copycat competitors that may incorporate these geofilters are now stopped by this legal license. Facebook can now be filed a legal suit by Snap if it tries to copy these geofilters. Undoubtedly it is a bang for the buck as it gets Snap to the win-win situation from both Mobli and its competitors. It is worth mentioning that according to one source, Mobli first approached Facebook to sell its patent. If Facebook had bought it, it would have grounded Snap, as Snap garners its principal part of the revenue from selling geofilters. So Snap hit the shot timely and got its hand on the crucial patent.