Blue Calypso Inc. ( BCYP ), the patent licensing company that scrapped a $5 million to $10 million pubic offering earlier this month, said it reached a settlement of an infringement action with Yelp, in which Yelp agreed to explore the use of Blue Calypso’s KIOSentrix AC powered beacons in potential distribution to Yelp's retail customer base.

Dallas-based Blue Calypso said Yelp has committed to an initial order of 4,000 KIOSentrix beacons.

Blue Calypso had sued Yelp in U.S. District Court in Tyler Texas alleging infringement of U.S. Patent No. 7,664,516, and U.S. Patent No. 8,155,679, both concerning methods and systems for peer-to-peer advertising between mobile communications devices.

The lawsuit alleged Yelp operates a system that infringes one or more claims of the ‘516 and ‘679 patents, literally or under the doctrine of equivalents.

“Yelp directly infringes by using the system and making it available to advertisers and consumers. Yelp induces infringement by consumers and advertisers by encouraging them to use its system. Yelp contributorily infringes by providing content to consumers for use in the system.”

Blue Calypso CEO Andrew Levi declined to comment on how much the initial order was worth and how much more Blue Calypso expected to make in future orders from Yelp.

"We are excited to work with Yelp as they explore the potential use of beacons within their retail customer's store locations,” Levi said in a statement. “We think Yelp has a great product and is ideal for beacon enablement. This will create a compelling opportunity to enhance the experience that both consumers and retailers have when they use the Yelp platform.

“As consumers use Yelp to explore restaurants and retail stores, Blue Calypso's beacons could cause those who are directed to a store location to be presented with location-centric content as they enter the store. Our technology could also help retailers know when Yelp has driven customer foot traffic to their location," said Levi.

This is the second recent settlement for Blue Calypso and follows a deal worth about $390,000 reached with IZEA Ltd in August.

The company was down to cash of just $74,726 after the quarter ended June 30, 2015.

—To reach the reporter responsible for this story please contact Dan Lonkevich at 707 318-7899 or dan@thepatentinvestor.com