Uber and Lyft Sued for Patent Infringement

Takeaway: Hailo Technologies, LLC filed a complaint for patent infringement by Uber and Lyft for their software system that allegedly infringes Hailo’s software patent for an “automated vehicle dispatch and payment honoring system.”

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Hailo Technologies LLC’s patent, filed in 1997, was directed to a software system that allowed a user to pick through a menu for a transportation means of his or her choice and enter the number of passengers and then show the estimated cost of the ride.

Hailo Technologies LLC is not to be confused with Hailo, a well-known ride-hailing business based in Europe that merged with myTaxi last year. Hailo Technologies LLC was incorporated last year and is represented by Cotman IP Group, a firm known to represent patent trolls.

Uber recently launched a patent purchase program called UP3 in an attempt to increase its IP holdings to protect itself from suits like this one. It will be interesting to see if Uber is willing to fight back based on principle or if it will use its new patent purchase program to settle the case quickly.