Blue Calypso wins its legal battle against Groupon, Foursquare, Yelp and Izea

By | July 17, 2015

Blue Calypso, a Dallas-based company won a legal battle to protect its patents against Groupon, Foursquare, Yelp and Izea.


Founded in 2009, Blue Calypso claims that the four companies have breached on three patents that are linked to tis peer-to-peer advertising methods. The company has requested the companies to put a stop to patent infringement and the compensation for the damages caused with the violation and the attorneys fees.

“We think we have an opportunity to change the way retailers and consumers interact,” said Andrew Levi, Blue Calypso founded and CEO. “It’s just a long complicated, extremely expensive journey, but we have a duty to protect our assets.”

A U.S District Court judge in East Texas has ruled that seven of the company’s legal definitions for its patents match with the interpretation of the U.S Patent and Trademark Office. The companies fought over the definitions of 11 terms in all. The judge came up with three of his own definition and sided with the defendants on one term. The step which is termed as Markman hearing, is compulsory in a patent infringement case.

Following this, the companies will work to settle the case before a scheduled jury trial in December, said Andrew Levi, Blue Calypso’s CEO and co-inventor of the patents. The four parties have 30 days to work with a mediator regarding the case and the case is expected to close in December.

The lawsuit was filed in April 2012, when Blue Calypso sued Groupon followed by suing LivingSocial in August, Yelp and IZEA in October and Foursquare and MyLikes in November. It has since settled with MyLikes, which agreed to pay Blue Calypso 3.5% of royalty for the breach and also with LivingSocial which has kept its compensation deal confidential.