When a customer places a mobile order for food, they likely aren’t worried about potential patent infringement. Tiare Technology, Inc. (Tiare), however, is not only concerned about the proper use of this technology but is trying to get a bite (of reasonable royalties) from many of these pick-up orders.
Tiare filed patent infringement complaints against some of the nation’s largest food retailers, such as McDonald’s, Starbucks, Taco Bell, Subway and Chipotle. The three patents[1] owned and asserted by Tiare are each directed to a "patron service system and method," which are capable of tracking a user's location to better facilitate order fulfillment. In each complaint, Tiare argues its patents cover “groundbreaking mobile-ordering technology” invented in the early 2000s. These are not the first group of companies Tiare has gone after, as the same patents were previously asserted against Chick-fil-A, Raising Cane’s, and Five Guys.
Tiare’s complaints, successful or not, are a reminder that patent diligence is a critical step. For those launching a product or service, it is recommended that a patent attorney conduct a clearance (or right-to-use) search to ascertain the potential risk of infringing upon on the rights of others and how to manage such risk.
[1] United States Patent Nos. 8,682,729, 10,157,414, and 11,195,224.