Legal

Tinder and Bumble have spent most of 2018 embroiled in a fierce legal battle over patent infringement, misuse of intellectual property and theft of trade secrets. At the center of the dispute is the swiping mechanism that has become a ubiquitous feature of modern dating. In March, Tinder’s parent company Match Group filed a lawsuit alleging that Bumble “copied Tinder’s world-changing, card-swipe-based, mutual opt-in premise.” Bumble responded with an aggressive countersuit asserting that the swiping interface is not an original notion worthy of patent protection.

After attempts to settle privately failed, the dispute headed to court and the first big ruling has been handed out.

Judge Alan Albright of the U.S. District Court for the Western District of Texas denied Bumble's claim that the Match Group patents in question are ineligible for patenting under Section 101 of the Patent Act.

Tinder has fired a group of employees who brought a lawsuit against parent company Match Group and its controlling shareholder IAC, according to website The Verge who broke the story. Tinder did not reveal how many people were fired, but former communications VP Rosette Pambakian was notably among them.

Tinder employees who brought the lawsuit against Match Group alleged that the company had manipulated financial data in order to lower the company’s valuation, forcing former co-founder and CEO Sean Rad among others to accept less money than they claim their shares were worth.

In addition, the lawsuit includes Pambakian’s allegation that former CEO Greg Blatt also sexually harassed her at a company holiday party.

Facebook has reportedly given personal data of its users to an exclusive roster of preferred companies such as AirBnB, Netflix and Lyft, even after claiming it had limited this data-sharing practice. One of the companies Facebook shared information with was dating service Badoo.

According to The Daily Beast, the British Parliament released 250 pages of documents, including internal communications between Facebook employees, regarding the secret data sharing practice. This potential scandal comes in the wake of Facebook’s launch of a new dating platform. Critics have been skeptical of whether or not people will feel comfortable joining in light of the privacy issues, and the latest news doesn’t look good for Facebook.

Facebook changed its data sharing practices with third party apps back in 2014 to restrict access, which affected many small app development companies like Six4Three that mined Facebook user data. The developer claimed in a lawsuit against Facebook that the social media giant favored lucrative companies and was willing to share data with them.

Match Group stock fell 10% 2 weeks ago in response to falling short of analysts’ Q4 goals, which were released along with their third quarter earnings reports.

Match Group reported revenue of $444 million, topping analyst estimates of $437 million for quarter 3. This is an increase of 29% when compared to quarter 3 of 2017 ($343 million). Match said it expects revenue of $1.72 billion for the year. But despite the growth and positive news, it was the projections for the last quarter which caused the dip in confidence from Wall Street. Analysts projected $454.5 million in Q4, while Match Group estimates it will only reach between $440 and $450 million.

Match Group lowered its estimates because of its higher-than-anticipated spending for Tinder and its other dating apps. Marketing costs are expected to rise 20% for Tinder and other brands like Hinge.

Is the end in sight for the legal battle between Match Group and Bumble?

According to documents filed in Texas last month, Bumble is looking to drop its $400 million countersuit against Match Group, which alleged Match interfered with its business operations, fraudulently obtained trade secrets, and intentionally tried to make Bumble less appealing to other potential acquirers. The countersuit was filed in response to a lawsuit from Match that claims Bumble infringed on several patents related to Tinder.

Initial attempts to settle failed and the war appeared poised to rage on, but a statement released by Match Group in early November indicated that Bumble will drop its lawsuit. A notice of non-opposition filed by Match confirms the company’s intent to support Bumble dropping its claims, provided the court issues declaratory judgments validating Match’s patents and Bumble’s alleged infringement of them, and absolving Match from allegedly stealing Bumble’s trade secrets.

There’s no sign of a slowdown in the legal battle between Tinder co-founder Sean Rad and Tinder’s parent company, IAC/Match Group.

In August, Rad and nine other plaintiffs sued IAC over alleged devaluation. Rad claims the company undervalued Tinder in July 2017 at $3 billion to prevent him from accessing the full value of his stock options. The suit alleges that IAC created “a false picture of Tinder’s financial condition and prospects” resulting in “bogus numbers” and that “through deception, bullying, and outright lies, IAC/Match stole billions of dollars from the Tinder employees.”

IAC is now fighting back with a motion to dismiss the lawsuit, filed on October 9, which claims that Rad “fully participated in the valuation process” of Tinder and shares responsibility for the company being undervalued. Though IAC failed to accurately predict Tinder’s success over the past year, the motion argues, Rad also failed.