Patent Strategy Mandatory for Mobile Wallet/Shopping

Anybody who wants to play in the mobile wallet shopping market may be forced to make patents an integral part of their strategy.

Yes it sucks.  But we have to get over it.  Internet developers and software developers are accustomed to a world in which patents are not key to strategy and not a place to invest time or energy early in the game. The net result of this has been, the person who benefits most is not those who first think of an idea, but those  who best implements an idea, perhaps years later.

However mobile wallet shopping is a new game with new rules. It's a big mashup of mobile wallets, loyalty, discount cards, movie tickets, and e-commerce. Add e-mail marketing and display advertising to hundreds of millions of consumers. The numbers are big, and this new game  will be centered around mobile wallets like Passbook and mobile payments/wallets from Google Square and others.

In this game the rules of already been established,and patents are important, perhaps pivotal.

Consider:

• Apple has already been sued and the lawsuit may extend to the larger ecosystem.

• Apple and other vendors are already in massive litigation.  The legal system is fully engaged.

• Apple and other big vendors been awarded patents covering much of the possible shopping/wallet behavior. Note that these patents cover business methods, not just technology.

• Mobile payment/Passbook-based shopping systems are by nature server and algorithm-intensive and therefore are more likely to be patented.

Add this up:  patents are going to be integral to the industry.  Again we might argue against this, but our job as developer is to play the game with whatever rules we're handed.

What does this mean specifically?

• More value will be accorded to early players, less to followers

• Not just tool providers, but even third-party players (the people using Passbook to market their products) will be affected

• Defensive patents will be a growth industry

Passbook Hackathon Part II

Update...here are the video links:  

Hackathon Part I video
Hackathon Part II video 

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Background

Over the past month many of us have been experimenting with Passbook and begun to see it as a massive enablement/disruption of the mobile loyalty, discounts, payments, and advertising space -- and, by extension -- an enablement/disruption of Facebook, Google, Apple, the credit card companies, and so many oother large players who are chasing mobile as their future revenue stream.

Opportunity

To say that mobile payments/loyalty is *big* is the understatement of history.  Passbook, because it bypasses most of the obstructions currently limiting the app-centric model of mobile payments, is likely to be a key pivot for the mobile payments space.  Passbook is so new that few players understand it's potential to elevate the entire concept of mobile payments.

Thus, the opportunity for a few small players -- us -- to participate in history.  What fun.

Plan

For our first pre-test, we already have the Passbook Mobile App builder, our little tool that allows us to mash Passbook specific functions into prototype mobile apps.  See our first test video.

We'll be adding Facebook API, Salesforce API, and any other mashup candidates -- Square, Paypal, Yelp, Visa, Mastercard, Eventbrite, etc -- that we think can be thrown in the pot.  

The entire 15 years of web-based and mobile-based commerce ecosystem can be refactored to Passes, and in one weekend we want to try to do it.

Date

Mountain View Aug 17-18

Deliverables

1.  Prototype a Passbook Commerce Network -- we hope -- an early leap towards passes as integral to retail commerce of modern society.  Yes, many other players have pioneered this trail before us...but we're going to throw Passbook on top.

2.  Create a half-dozen business and technology ideas we can play with in the coming months

3.  Document the relevant IP

4.  Test and extend the Passbook app builder and the Pass Marketing Engine.