Carma Technology is taking on Uber in a patent infringement lawsuit that could shake the ridesharing giant. Filed in the U.S. District Court for the Eastern District of Texas, the suit claims Uber violated five patents related to matching riders with vehicle capacity.
Carma’s attorney argues this hits at the core of how modern ridesharing operates. The company, founded by Sean O’Sullivan in 2007, is asking for a jury trial, a permanent injunction against Uber, future royalties, damages, and other costs.
The issues date back to 2016 when Carma first contacted Uber regarding its ridesharing patents. At that time, Uber was on a growth streak, valued at $66 billion, but lacked the rights to the patents Carma held. 
Uber has rejected multiple patent applications in the past due to conflicts with Carma’s protections. O’Sullivan claims Uber knew about these patents since as early as 2015.
“What’s important to understand here is Carma isn’t just asserting five patents,” said intellectual property attorney Larry Ashery, not involved in the case. “They have had a very sophisticated strategy of patent procurement that they’ve been working on for the past 18 years.”
Carma’s last lawsuit took years to materialize. O’Sullivan noted, "It’s incredibly expensive to sue a large company over IP." The cost of pursuing litigation can exceed $10 million.
Meanwhile, Uber responded with procedural motions, indicating a desire to move the case to its home turf in Northern California. Notably, Carma is targeting Uber first, with O’Sullivan suggesting around 60 other companies may also infringe on its patents.
“I think there’s a danger in society where we can’t rely on our patents to protect the rights of the inventors,” O’Sullivan stated. “But it’s not just for Carma, really. We think of this as a problem for the entire system.”
Carma is betting on the strength of its patents, which date back to its original ridesharing venture, Avego. The company has transitioned to focus on toll management and reducing traffic congestion through tech.
With stakes in play and potential ripple effects across the ridesharing space, all eyes are on how this lawsuit unfolds.
