Snapchat bought a patent named Geofilter from the Mobli Company by paying a record price of 7.7 million dollars. The application named Geofilter is known as geo-labeling. Mobli Company is an Israel based company launched six years ago as a rival to Instagram. It failed to get its competitor, actually patented the idea of Geo-photo filters in 2012, after launching it the previous year.
Snapchat declared that a $ 360 million portion of the company’s $ 400 million revenue had come through selling Geofilter, or photo filters based on location which is available for purchase by advertisers. Thus, having the patent of Geofilter is a crucial step for the company.
Almost all the features of Snapchat are easily copied by Facebook and Instagram. So, purchasing the patent right of an application which forms an important part of its revenue, is seen as an wisely and successful step of Snapchat.
Before this important purchase, there were rumors about Facebook’s demand to buy the patent of this geo-labeling application from Mobli. But the news has been confirmed by neither Facebook nor Mobli. In fact, this feature will not have much work on Facebook while it could be very useful for Instagram.
This purchase is seen as a record sale for the Israeli Mobli Company whereas the patent for a feature used on Google Maps had been sold for $ 2.7 million before the sale of Geofilters patent.