The Daily Startup: Bounce Exchange and Yieldify Tangle in Copyright Suit

This post is by Russ Garland from Venture Capital Dispatch

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Bounce Exchange Inc., a venture-backed behavioral marketing startup, has sued competitor Yieldify, accusing it of copyright infringement and theft of its software code, Patience Haggin reports for Dow Jones VentureWire. New York-based Bounce Exchange, founded in 2010, is backed by investors including LaunchTime, Contour Venture Partners and Primary Venture Partners. London-based Yieldify Ltd., held by Zeus Enterprise Ltd., raised $11.5 million from investors including Alphabet’s venture arm GV, formerly Google Ventures, and Japanese telecommunications group SoftBank in 2015. Bounce Exchange alleged in court filings that each of Yieldify’s co-founders contacted the company separately and posed as potential customers to get a demonstration of the software and other information. As a result of the information obtained through these meetings, Bounce Exchange alleges that Yieldify created “substantially similar” software and all but copied some portions of Bounce’s code. Yieldify, when notified of Bounce’s allegations, in court filings that it disagreed with the infringement claims and that it replaced the implicated code with open-source code in March 2015.

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