Google-backed UK Tech Company Sued for Patent Infringement
Apr 28, 2016 04:29 AM EDT
US company Bounce Exchange filed its second lawsuit againts London-based rival Yieldify. Bounce Exchange filed the lawsuit in Texas district court on the charge of copyrights infringement. Last year, Bounce Exchange filed the same allegation against Yieldify in New York district court.
In 2015, Bounce Exchange filed a lawsuit in New Yor district court accusing Yieldify of copying its code and infringing its patents. The UK company denied the allegation. Business Insider reported that Bounce has now filed a second case, this one in a Texas district court, repeating these allegations and adding some of Yieldify's customers as defendants.
In both of its court filings, Bounce alleges the company gave a demonstration of its product to Yieldify executives. Afterward, Yieldify went on to launch a very similar competing product. The customers of Yieldify who was also added as defendant was accused of "actively inducing others to infringe and/or contributing to the infringement."
In the Texas court filing dated April 14, 2016, Bounce Exchange provided examples of source code which was allegedly copied by Yieldify and even the marketing materials.
"Not only did Yieldify copy from Bounce Exchange the functionality of the Bounce Exchange Software, Yieldify also copied the very marketing information that Bounce Exchange used to promote its software," the Bounce's court filings said.
Vice President of Marketing at Yieldify, Shawn Cabral, said that his company cannot comment regarding the lawsuit, but the company reitereated to have done nothing lawful or in any way improper.
Founded in New York in 2010, Bounce Exchange was established to develop tools in helping clients delivering content which tailored to different segment of visitors. While London-based Yiledify was founded in 2013 to offer almost similar service which was known as predictive analytics. According to PR Newswire, the area of predictive analytics have been increasing rapidly and the market is growing.
Yiledify was backed by Google Ventures (GV) that led a $11.5 million (£8 million) Series A investment in June 2015. The company's technology in predictive analytics provide a fully managed service to its customers and helping them to increase transaction from their most valuable vistors. While Bounce's focus is to build analyze behavioral automation to analyze visitor's behavior and create an engagement pattern to help marketers analyze their visitors.
Regardless of how the current outlook of predictive analytics, it may not last long. An expert in Internet ad and predictive analytics, Chris Brinkworth, told Ad News that everyone was let down by the ad tech company. He said there are more than 98% of traffic leaving websites without converting into sales, while companies are buying various ad tech tools and predictive analytics which does not generate sales.
On April 14 Bounce Exchange filed a second lawsuit againts its London-based rival Yieldify. Bounce sued the British company in New York and Texas district court for allegedly code stealing and copyrights infringement.