Carma Technology Sues Uber for Ride-Sharing Patent Infringement
Carma Technology, founded by Sean O'Sullivan, is suing Uber for allegedly infringing on five ride-sharing patents. These patents cover the core technology behind matching riders with available vehicles. Carma, formerly known as Avego, claims Uber knowingly infringed on these patents, despite rejections from the U.S. Patent and Trademark Office.
The Lawsuit and Its Potential Impact
The lawsuit, filed in the U.S. District Court for the Eastern District of Texas, seeks a permanent injunction against Uber, along with royalties and damages. Carma's lawyers first contacted Uber about the patents in 2016, but the company chose to pursue legal action after alleged inaction by Uber.
This case could have significant implications for Uber and potentially dozens of other ride-sharing companies. Intellectual property attorney Larry Ashery, not involved in the case, highlights the complexity of Carma's patent strategy. He notes the five patents are part of a larger family of 30 interconnected patents, each containing multiple claims that Uber must defend against.
Carma's History and Patent Portfolio
Carma, initially focused on carpooling, launched its ride-sharing app in 2008, the same year the iPhone launched. The company operated a carpooling business until 2016 and other ride-sharing services until 2018. O'Sullivan argues that Uber and Lyft's use of the term "ride-sharing" for taxi-hailing created market confusion, leading Carma to shift its business model.
Today, Carma focuses on traffic management solutions for toll roads and HOV lanes. Its technology helps transit authorities manage traffic flow and incentivize carpooling. O'Sullivan asserts Carma is a profitable company, but the lawsuit against Uber is a significant investment.
Why Now?
Despite owning the patents for years, Carma waited to sue. O'Sullivan cites the high cost of litigation against a large company like Uber as a primary reason for the delay. He also states that Carma attempted to negotiate a licensing agreement with Uber in 2016, but those efforts were unsuccessful.
Uber has filed procedural motions, including a request to move the case to the Northern District of California. The company declined to comment on the lawsuit.
The Five Patents at the Heart of the Case
The lawsuit centers around five patents granted to O'Sullivan and Carma. The first patent, filed in 2007 and granted in 2010, describes a system for matching riders and goods with available vehicle space. This system established pick-up and drop-off points and matched users traveling similar routes.
O'Sullivan emphasizes that Carma's patents protect the rights of inventors and the patent system itself. He believes this case is a test of whether the rule of law applies to powerful tech companies.
While this lawsuit initially targets Uber, O'Sullivan notes that approximately 60 other companies may also be infringing on Carma's patents, suggesting further legal action is possible.
