Being first to market is no longer enough of a competitive advantage. Companies need to be first to market and have patents protecting their products to ensure sales and profit longevity.
"Before a company can book a single penny in profit it needs a product to sell. Yet in today’s fiercely competitive global economy, before a company can produce something to sell, it needs to patent the idea. Otherwise, it’s too easy for competitors to knock off the product and steal market share.
In other words, being first to market is no longer enough of a competitive advantage. Companies need to be first to market and have patents protecting their products to ensure sales and profit longevity.
Groupon (Nasdaq: GRPN) and Apple (Nasdaq: AAPL) serve as good examples of this new paradigm at work.
As you’re well aware, Groupon invented the daily deals market in 2008. All it took was a novel idea to connect consumers and businesses in a new way – via coupons over email. But guess what? Groupon didn’t have even one patent protecting its novel business model. And within four years, over 300 competitors emerged. Now, Groupon doesn’t stand a chance to keep booking higher profits, let alone survive.
Contrast Groupon’s experience with the details behind the meteoric rise of Apple and you’ll definitely get the connection between patent filings and stock price performance.
We can all agree that Apple took the world by storm with its iPhone launch in June 2007. Before it sold a single one, though, it secured as many patents as possible. And it continued to do the same thing on every next generation device."
Source: Patent Filings: The Next Great Leading Indicator by Seeking Alpha
March 11, 2012
An example is the last new product of Local Corp backed through a patent of Local Corp: In two smart moves, Local Corporation (LOCM) is generating new revenue streams and setting up shareholders for big returns. An important pay-per-call patent and a strategy to launch a series of popular industry-specific websites will drive high-value ad revenues, boosting Local's already healthy revenue growth rate of 40% per year.
December 6, 2012
Irvine-based Local Corporation has launched a new, local lead generation site today, called Insurancelow.net, which it says is the first in a series of lead generation websites being launched by the company. The new site offers a car insurance guide and details on choosing car insurance carriers. Local Corporation said it expects the lead generation sites to offer educational articles and opportunity to receive quotes from industry professionals. The firm said it believes the launch of the lead gen sites would help it monetize the 30M consumers it reaches each month.
Dec. 12, 2012
Local Corporation Granted U.S. Web Domain Name Patent - This is the eleventh patent issued to the company and was part of the original OCTANE360 platform and asset acquisition in July 2010.
Covers Bulk Acquisition and Development of Domain Names
IRVINE, Calif.--(BUSINESS WIRE)--Dec. 12, 2012-- Local Corporation (NASDAQ:LOCM), a leading online local media company, today announced that the U.S. Patent and Trademark Office has granted the company patent number 8,312,125, which covers a method and system for the bulk acquisition and development of multiple web domain names.
Issued on Nov. 13, 2012, the patent describes a system and method for enabling the bulk acquisition and management of multiple web domains. The patent covers the technology related to the fulfillment of web domains. Local Corp. is currently using this technology for its small and medium-sized business (SMBs) customer as well as for the development of its recently announced vertically oriented lead generation sites. The method includes collecting a set of domain names for bulk content development, some of which are derived from user-provided keywords; filtering the set of domain names based on matching the domains to most-often used search terms by consumers; automatically submitting domain names for purchase; applying a template to the web domain related pages; and inserting content in those pages.
“The domain name industry continues to grow, with the number of domain names registered worldwide expected to top 305 million by 20181,” said Heath Clarke, Local Corporation chairman and chief executive officer. “This method is already being used as part of our Launch by Local SMB fulfillment platform and forms the basis for our site expansion into lead generation verticals. We’ve spent years developing our intellectual property portfolio, and we’re pleased that this key patent has issued.”
Sentiment: Strong Buy
“We already provide small businesses with leads as part of our ‘Launch by Local’ digital media suite for small businesses, so it’s natural for us to expand further into this performance ad segment,” said Heath Clarke, Local Corporation, chairman and chief executive officer. “These sites expand our ecosystem and lead generation is expected to help us to optimize overall monetization by harvesting leads from the 30 million consumers we reach each month, who are searching for goods and services locally.”
Online advertising for apartment communities - A new lease on prospective tenants
Online advertising for carpet cleaners - Strategies for being a customer’s first call
Online advertising for caterers - Serving up more customers
Online advertising for conventions - Showcase your capabilities, book more events
Online advertising for assisted living facilities: Reach prospective clients, plus the adult children who care for them
Online advertising for auto parts and repair - Tune up your customer base
Online advertising for cleaning services - Outshine the competition
Online advertising for cosmetic dentists - Brighten your business prospects
Online advertising for dentists - Put some bite in your business
Online advertising for flooring businesses - Smart steps to more customers
Online advertising for restaurants - Put more customers on your menu
Online advertising for furniture businesses - Your portal to furniture buyers
Online advertising for glass repair businesses - A clear view to your customers
Online advertising for golf courses - The straightest shot to your customers
Online advertising for hair salons - Restyle your client base
Online advertising for HVAC businesses - Heat up your customer base
Online advertising for lawyers - Direct clients to your practice
Online advertising for small to medium sized businesses - Your road to reaching customers
Online advertising for movers - Move your business forward
Online advertising for pest control - Strategies for being a customer's first call
Online advertising for physicians - Bringing greater accessibility to your patients
Online advertising for plastic surgeons - Rise above the rest
Online advertising for pool businesses - Swim laps around your competitors
Online advertising for roofers - Build connections with homeowners
and a lot more.
You could spend over $1,000 elsewhere or get it all with Launch by Local for just $249. See how Local Corp stack up over the competition. The complete offer (named Propel) of the Launch by Local-package for only $249:
- Site Design
- Social Media
Propel gets you everything you need to launch your business to new heights so that you can get found by customers looking for you when they’re ready to buy. The best part about it? Our package offers an unbeatable value at one low price. Sign up today and we’ll do all the work to get you started.
My estimate for Launch by Local (Propel-package for $249/month) is 1,100 subscribers at the end of 2012 and 3,000 subsribers at the end of 2013.
Milo saying about MIlo: "Milo is local shopping made easy. We search your local store shelves in real-time to find the best prices and availability for the products you want to have — right now. Milo shows you what's in-stock where and tells you how much it costs at that moment. We also offer detailed product information and user reviews, so you can be confident you're getting a product that fits your needs. In short, we make it easy to access the best of both online and offline shopping worlds — all in one place.
As the boundary between online and offline commerce continues to blur, Milo continues to expand its coverage and capabilities — increasing our number of products and retailers, introducing additional mobile features and working to seamlessly connect the online and offline worlds. With the additional resources of eBay, Milo is intent on changing the face of shopping — for decades to come."
I am sure, that Ebay's Milo hurts the following important patent of Local Corp - Abstract of Local Corp's Patent
"A localization service is provided that provides users with online information on local retailers that sell particular products. A user can perform a search using a web page associated with the localization service or by searching using an internet search engine. The user's search includes a search origin. The search origin may be defined in terms of location information such as a place name or a postal code. A search for a particular product at local retailers may be made using search parameters such as search origins, product names, model numbers, product categories, and product attributes. The localization service may provide the user with search results in the form of web pages that list which retailers sell the desired product in the vicinity of the search origin. A targeted advertisement server at the localization service may use display criteria to determine which targeted advertisements should be displayed for the user."
I am sure, that Ebay's Milo hurts an important patent of Local Corp - What is claimed is:
1. A computer-implemented method for providing online local shopping information to a user with a web browser who is interested in purchasing a product at a brick and mortarretailer, comprising: at an online localization service having a database including geocodes for a plurality of retailer addresses, receiving a universal resource locator from the web browser that contains a plurality of search parameters, wherein thesearch parameters include a search origin that indicates a geographic location and a product name for a product; at the localization service, using the search origin and the product name to generate a web page containing a list of retailers in thevicinity of the search origin that carry the product; and consulting a plurality of geocoding services over the internet to determine whether the geocodes are accurate with the localization service.
2. The method defined in claim 1 further comprising ordering the retailers on the web page according to their distance from the search origin.
3. The method defined in claim 1 further comprising: with an advertisement server, providing a targeted advertisement for the web page.
4. The method defined in claim 1 further comprising: with an advertisement server, receiving at least the product name and the search origin; and applying targeted advertisement display criteria to at least the product name and the searchorigin to determine which targeted advertisement to display on the web page.
5. The method defined in claim 1 wherein the localization service comprises a database containing promotional pricing information, the method further comprising: displaying product prices on the web page, wherein the product prices reflectpromotional pricing adjustments from the promotional pricing information.
And the additional claims 6. - 20. you can read on patentgenius.c.. My advice: Do it and I am sure, you will believe like Flankenking, that Ebay's Milo and Groupons Now and a lot other hurt this important patent of Local Corp. Less
Sentiment: Strong Buy