Mobli has sold its Geofilters patent to Snapchat for $7.7 million, a record deal for any patents developed in Israel. Geofilters makes the bulk of Snapchat’s revenues, amounting to $360 million of the total $400 million. Generating almost 90% of their total revenues, it was crucial for Snapchat to acquire the patent and prevent future lengthy and costly litigation.
Rumors had Facebook also eyeing the patent and had they acquired it first, could have crushed Snapchat’s source of income. The patent is named “Methods and Systems of providing visual content editing functions”. The Israeli company, Mobli, patented the idea of adding filters to photos based on your location back in 2012. By purchasing the patent, Snapchat can continue to offer its most valued service to its users.