Published: Fri, April 21, 2017
Hi-Tech | By Ellis Neal

Snap Reportedly Acquires Patent For Geofilters For $7.7 Million

Snap Reportedly Acquires Patent For Geofilters For $7.7 Million

In an email sent to the shareholders of Mobli, obtained by TechCrunch, the company announced that it had sold the patent to Snapchat for a whopping $7.7 million. They're some of its most popular offerings, after all, and were apparently responsible for $360 million of the $400 million revenue it posted past year. In 2011, the company launched a key feature, called Geofilters or Location Filters, which allows a user to tag and filter photos based on geographical location.

The Mobli patent sale exceeds the earlier $2.7 million patent deal linked to Google Maps, and becomes the most expensive technology patent deal in Israel, notes TC.

The patent (US#20160373805, US#9459778) was filed back in 2012 and was named Methods and Systems of providing visual content editing functions. The original patent was approved in 2014, a long time before Snapchat even planned the Geofilters feature.

In addition, the company acquired the patent because Geofilters are an important part of its revenue.

After 6 years, 86 Million Dollars in funding, a peak of 23 Million users and 4 different failed products, today marked another chapter for Mobli, with the sale of one of its patents to Snap Inc. As an example, Snap recognizes sponsored campaigns by Starbucks and Wendi's, that made use of the Sponsored Geofilters and have created value for the advertiser. Facebook "100% wanted it", according to one source.

The site further reports that Facebook was also offered the patent, with one source telling the site that the social network "100% wanted it".

Snapchat has been regularly coming up with new features based on filters.

"After we saw the popularity of the Geofilters product, we opened the creation process to our community, who now create many Geofilters for all sorts of public and personal places and events".

A Facebook spokesperson said the company had no comment to make.

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