July 22, 2017

Patent Challenge to Ride-Sharing Technology

Hailo Technologies, LLC, a subsidiary of Red Dragon Innovations LLC, which is an arm of a patent monetization firm founded by IP lawyer Daniel Cotman called 2S Ventures LLC (not affiliated with the British cab service of the same name), filed separate suits in the Central District of California against both Uber Technologies, Inc. and Lyft, Inc . Both suits involve a claim that mobile phone applications published by both companies infringe on a patent for an automated vehicle dispatch and payment honoring system held by Hailo.

The patent, granted in 1999 (originally assigned to Florida-based inventor and entrepreneur Alexis Paredes), uses specialized software to enable users to select a taxi or particular vehicular transport from a menu, along with the desired destination which can be graphically selected on the screen and allows the customer to designate the number of passengers traveling. The system then displays the approximate fare and provides alternative forms of payment which are honored by that particular transport company. The dispatcher can then route the appropriate vehicle to the requester’s location while providing an estimated time of arrival to the customer.

Uber and Lyft are the top ride sharing companies in the United States, an industry that […]

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