Monday, August 6, 2012

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


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