Local.com boasts of new search patent

Shares of Local.com shot skyward after the online search company said it received a patent for ad-supported mobile search.
The Irvine, Calif.-based outfit said the patent addresses “the method of responding to enhanced directory assistance” including voice- and text-based searches from wireless handsets. The patent also covers a referral advertising paradigm using pay-per-click, pay-per-call and other models.
The patent could prove to be a formidable weapon in the ad-supported mobile search space, which has become one of the hottest areas in mobile. Wireless pure-plays such as 4Info Inc. are squaring off against Internet giants like Google Inc., Yahoo Inc. and Ask.com in a race to deliver marketing messages alongside local business listings and other content.
While patents traditionally have been granted to technological innovations, Local.com’s new patent underscores the growing trend of awarding intellectual property rights to business models. CEO Heath Clarke signaled that the company may be more interested in cashing in by granting licensing rights than by convincing mobile subscribers to use its service.
The patent “is complementary to our local search patent (which was previously granted) in that it provides us with intellectual property coverage for what’s now a widely accepted monetization method-pay-per-referral-within the directory assistance marketplace,” Clarke said. “We encourage directory assistance and free 411 companies that are interested in using our intellectual property to enter into licensing agreements with Local.com.”
Investors responded by sending shares up $3.72, or 54%, to $10.64.