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Local.com Claims The Rights To Mobile!

Written on

Jul 5, 2007 

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Sarah Novotny  |

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Local.com Claims The Rights To Mobile!

Local.com is sitting pretty these days. After being awarded a patent on Monday for voice and mobile directory assistance as well as the ad model used to monetize those searches. Because of this the company’s stock is soaring. This will make for a very interesting future for competing companies as Local.com is planning on charging others with patent licensing fees.

The patent is said to cover Local.com’s lead-generating pay-per-click and pay-per-call ad systems. These ad systems serve targeted ads to consumers who use the 41 service or the free business directory. Operated-assisted calls, SMS or WAP messaging through automated voice systems serve search results and ads.

Greg Sterling, Sterling Market Intelligence Analyst stated, “Nobody really knows what these patents mean. They’re very dense and hard to penetrate,” adding Local.com’s new patent will have “zero impact” on advertisers. “Very few advertisers are going to make any decisions on the basis of this,” he said.

The main advantage the patent poses for Local.com is security as it moves into the ad-supported SMS-based directory service market. “It’s only a matter of time before those [SMS] models are underwritten by sponsors,” said Heath Clarke, CEO of Local.com, adding that the patent is a form of insurance for potential partners and investors.

Competitors involved in the free directory and mobile search market include Voice Local Search, TellMe, and 1-800-Free411 under Jingle Network. Local.com is looking to accumulate licensing fees from these companies. Clarke said, “That’s certainly one of the methods by which we could monetize the patents.”

There is an assurance by Clarke that the industry will be fine despite initial confusion over patents finishing by stating, “I don’t think there will be any deterrent for advertisers.”

Tags: Free411, Jingle-Network, Local.com, mobile-directory-assistance, SMS, TellMe and Voice-Local-Search

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