RetailMeNot, a leading savings destination connecting consumers with retailers, restaurants, and brands, both online and in-store, alleges that Honey has infringed and continues to infringe on four of its patents, specifically U.S. Patents 9,626,688; 9,639,853; 9,953,335 and 9,965,769.
Los Angeles-based Honey is an online service that automatically finds coupon codes for the site a user is shopping at and applies them to the customer's order at checkout. The site also offers HoneyGold, a rewards program that allows users to earn cash back when they are shopping online.
RetailMeNot states that the patents being utilized by Honey protect the company’s “pioneering developments in computer-related technologies, and Honey's unauthorized use of them enables key features of Honey's website and browser extensions.”
The suit seeks both a permanent injunction and damages in an amount to be determined at trial.
"RetailMeNot strives to invent world-class digital technology giving consumers the best possible experiences when using our products online and in-store," Jonathan Kaplan, chief legal officer and chief compliance officer of RetailMeNot, said in a press release. "We are committed to our continued investment of significant resources in protecting the company's intellectual property through the development of patent and other intellectual-property rights."
Last year, RetailMeNot was acquired by Harland Clarke, a payment and marketing services firm, for $630 million in equity. The company will use RetailMeNot to boost the reach of the coupons and promotions managed by Valassis Communications, a direct mailer company it purchased for $1.31 billion in 2013.
“RetailMeNot provides a new global digital channel to distribute our clients’ offers that perfectly complements Valassis’ current digital, mobile, mail and other print networks,” Harland Clarke Chief Executive Victor Nichols said in a statement.
This was the second time RetailMeNot had been acquired; in 2010, it was purchased by WhaleShark Media, which then rebranded its entire company to RetailMeNot.
In 2013, RetailMeNot went public, raising $191 million in its IPO.