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How a decade-old patent dispute could upend Uber’s business

  • Carma Technology has filed a lawsuit against Uber alleging patent infringement related to matching riders with vehicles.
  • The lawsuit includes claims for a permanent injunction, royalties, damages, and trial by jury.
  • Carma approached Uber about patent concerns in 2016, but formal legal action began this year.
  • Uber's patent applications were rejected due to existing patents held by Carma.
  • The lawsuit targets Uber specifically, not other ride-sharing companies like Lyft.
  • Carma's patents describe the core service of modern ride-sharing, claiming Uber infringes on them.
  • Uber is expected to challenge the validity of Carma's patents in response to the lawsuit.
  • Carma, previously known as Avego, initially focused on ride-sharing and later transitioned to tech for road-pricing services.
  • The lawsuit signifies a challenge to big companies using patent strategies against smaller inventors.
  • Carma's profitable business model faces financial strain due to pursuing the lawsuit against Uber.

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