Vancouver-based Investel Capital Corporation (Investel) has filed an infringement lawsuit against Snapchat, Inc. with the Federal Court of Canada. Investel alleges that the geofilters used by Snapchat infringe on several claims in the Investel Canadian Patent No. 2,887,596 entitled User Content Sharing System and Method with Automated External Content Integration. The patent is licensed to iFramed Canada Ltd. for exclusive use in North America and was incorporated into the technology of an iFramed application with a planned commercial launch for later this year. iFramed is described as an Internet social medial user/advertiser relationship-based global marketing system.
Snapchat, Inc. is a provider of a text photo and video based messaging application for mobile phones. Established in 2012, the corporate office is located in Venice, California. It was reported that Snapchat has over 100 million active users. In March of 2016, Snapchat acquired the Canadian company Bitstrips Inc, which provides a mobile application that creates personal emojis, which can be shared in a chat application.
According to an Investel Capital Corporation press release on August 24, 2016, Investel, (through its subsidiary, Teliphone Navigata‐Westel Communication Inc.), claims to be “the first to develop and patent an advertising system that allows users to brand their own social media content with user-related advertising and information”. The system provides users with advertising choices for integration into their social media pictures and videos “based on, among other things, geographic locations”.
Investel is asking for unspecified monetary damages for past patent infringement by Snapchat, Inc. and for a permanent injunction to prohibit Snapchat from further infringement of the ‘596 patent.
A managing partner at Investel, Lawry Trevor-Deutsch, was quoted as saying “[w]e will not stand by and permit other companies or organisations, including Snapchat, Inc., to exploit our proprietary technology.” He continued, “[t]his suit reflects our continued commitment to protect our investments by vigorously pursuing the unauthorized and unlicensed use of our intellectual property, whether in Canada or around the world”.
Investel is reviewing other major social media networks that have incorporated geofilters into their platforms for possible infringement of the Investel patents.