The innovation offered by the ‘821 patent is vast and widespread. The numbers tell the story and are support by research studies and the unanimity regarding the utility of MOTOM advertising:

1. 98 percent read rate for all text messages, also known as “open rates,” dwarfs any other advertising platform. For any well-informed campaigns – like candidates looking to secure a rolodex of supporters - we anticipate a growth of MOTOM-based advertising campaigns.


2. 32 percent of recipients respond to text offers. When joined with the ease of TCPA-compliant MO opt-in using “call-to-action” ad campaigns, we anticipate widespread adoption of the technology.


3. 29 percent of SMS marketing recipients click on links in SMS messages they receive, and 47 percent of those go on to the suggested action. This equates to nearly a 14% conversion rate. Many more take action when presented with pictures or video in their text apps.

Some Example Use Cases

We have identified numerous verticals that are currently using our patented technology:

Vertical 1 – First Responder Systems

Emergency Management companies and Emergency service providers are and can be prime users of the technology of the ‘821 patent. As discussed, the patents core value is its ability to rapidly deliver rich media to a group of subscribers who have opted in to receive updates. One of the largest Emergency Notification companies in the United States is Everbridge who acquired a company named Nixle. Nixle quotes on its website: “When seconds matter, notify citizens over multiple communicationpaths, including voice, sms, email and social media. Nixle proactively manages incident communications before, during and after an event to keep residents safe and informed.” www.nixle.com/

It is important to note that the entire user database of Nixle was aggregated via the opt-in requirement that is the core of the Access Technology. At the time of this writing, Nixle and Everbridge has a market capitalization of over $2.6B and some may argue have built their user-base through infringing on the ‘821 patent. Currently there are roughly 10 Emergency notification companies utilizing the ‘821 technology, each with revenues exceeding $300M annually.

Vertical 2 - Retailers

Perhaps the largest use case of prospective licensees/customers are retailers spanning a multitude of industries, including without limitation, consumer goods, general merchandising stores, clothing, food, entertainment, electronics, office supplies, home goods and the like. The United States Short Code directory currently lists over 300 of the largest US retailers that use short code MOTOM campaigns, with names like Amazon, Target, Staples, Nike, Home Depot, Best Buy, Under Armour, Ikea, Subway, Mac and many more. It is our understanding that nearly all retailers that have engaged in mobile SMS advertising have at some point used our intellectual property. With its simple to use, TCPA-compliant, opt-in process, the patented MOTOM platform will also perfectly complement new mobile advertising technologies, such as virtual and augmented reality, as a vehicle for legal, customer data acquisition.

Vertical 3 – Digital Billboards

Physical Billboards and Posters (of the type used by the presidential campaigns) are the prototypical use case for the ‘821 patent. (see FIG. 1 of the patent). However, in keeping with technological change, Digital billboards are experiencing staggering growth, and is expected to be even larger than the physical. At the time of this writing, it is estimated that the US has roughly 7800 large digital billboards throughout the country. This is not to mention the various smaller size billboards that exist in various localities. It is our understanding that from the multitude of advertisements that have passed through billboards both physical and digital. More importantly, the growth of digital billboard is expected to be explosive. A sample of companies having large market caps and are believed to be either enablers of infringement or infringers themselves: JCDecaux (3.4B Annual Revenue), Clear Channel Outdoor ($2.7B Annual Revenue), Lamar Advertising ($1.6B Annual Revenue), Outfront Media ($1.5B Annual Revenue).

Vertical 4 – Political Campaigns.

As indicated above, starting in 2016, both the Clinton and Trump campaigns used the ‘821 patent to further their campaign efforts. In particular, the campaign(s) hired mobile advertising agencies to run highly effective, but infringing, ad campaigns. In addition to digital advertisements, Trump printed thousands of posters that encouraged mobile users to “Text TRUMP to 88022.” The campaign contracted with mobile tech firm Tatango to enable mobile users who did this to receive on their phones, media-rich MMS messages from the campaign. Each time a message is sent to a subscribed user, the campaign commits an act of infringing at least claim 13.

We expect many if not all 2020 political campaigns and candidates to use the ‘821 patent even more than was used in 2016. Note: We are aware that the Winred and ActBlue Text Based Donation Platforms that will be key to Republican and Democratic campaigns, respectively, are being integrated with technology that infringes ‘821 patent.

And Many More

Other Verticals

– AU2 has identified many other industries that can and do use the patented technology, including, but not limited to, real estate, non-profits, camps, schools, medical, spas and health clubs.

AU2 currently has a new mobile marketing communications company – the ONLY processor in the U.S. with a license to the ‘821 patent. Processing through this new company will be the only path for advertisers and campaigners to obtain both a release for past infringement and a license moving forward for the price of industry-standard processing fees. Click Here for a Demonstration

All infringing advertisers and campaigners who choose not to process with us will need to purchase a non-exclusive license to the ‘821 patent.

Note: Exclusive license agreements may be available in each vertical on a “first in” basis.

Enforcement

AU2 has lined up a team of experienced patent litigators to enforce the ‘821 patent.