Instagram vs. Hipstamatic

It’s impossible to find someone who hasn’t heard of Instagram. 

Open any social media, and you’ll see references to Instagram posts as well as the influencers that dominate the platform. But, did you know that Instagram wasn’t the first platform dedicated to sharing photos? 

A company called Hipstamatic was founded one year prior to Instagram and dominated the photo-and video-sharing app market. Yet, few, if any of us, have heard of Hipstamatic. 

Their tale of missed opportunities is a wake-up call for entrepreneurs and innovators everywhere.

BEING THE EARLY BIRD IS NOT ENOUGH

Hipstamatic was founded a year before Instagram and introduced the notorious automatic filters for photos.

The company pioneered the mobile photography industry — it was the first app that made it possible for everyday users to shoot photos like professional photographers. It also dominated the app market, even though it wasn’t free. It was beloved by amateurs and diehard photographers alike.

However, when Instagram launched, it had the very same features as Hipstamatic — with a minor addition: social media sharing. Instagram quickly gained the upper hand and took center-stage as the world’s first $1 billion buy-out by Facebook only two years after launching!

So, how was it that Instagram stole the spotlight from Hipstamatic when they weren’t the first-to-market?

PROTECTING THE CORE OF YOUR BUSINESS

Hipstamatic’s core features were always its in-app automated photo editing features, like filters. Before Hipstamatic, users could only edit photos with a serious photo-editing tool and some graphic design skills. 

Hipstamatic’s promise was unique at the time: be the photographer you always wanted to be, without the prerequisite professional tools and skills — all integrated into one application, right at your fingertips. 

However, Hipstamatic missed the opportunity to protect its core features with patents! 

When Instagram launched, they had the very same functionality, plus the valuable addition of social media sharing. The latter created a viral effect, quickly gaining massive traction with its user base. 

To that end, if Hipstamatic would have protected its core features with a patent, this would never have happened. 

Why? 

Because then only Hipstamatic would have been able to make, use, and sell software with these features. Instagram would have been forced to reach an agreement with Hipstamatic.

WAITING TOO LONG TO FILE

Eventually, Hipstamatic filed for a patent — but only in 2014 and only for their new Cinematic video editing tool. It was a nice addition, but unfortunately, it was way too late to file.

It wasn’t clear why Hipstamatic waited so long to file their first patent — perhaps they assumed they’d be acquired or were simply too focused on their technology to think about their patent strategy.

Regardless, the reason why they decided to wait is irrelevant — it was too long to file for a patent. As a result, Hipstamatic failed to protect its market, which was quickly taken by Instagram. 

Merely filing for patents isn’t enough — you have to file quickly and for the patents that will keep your competitor away from your most marketable ideas. If you don’t protect those ideas, your competitor can take them and then take your market. By that time, it’s too late — your valuation will decrease and your buy-out options become limited.

SO, WHAT’S THE TAKEAWAY?

Hipstamatic’s story mirrors Kodak’s demise. For those who need a reminder, Kodak failed to reinvent itself when technological developments threatened the core of their business. Kodak then experienced a series of downfalls and bankruptcies and is now a shell of its former company. 

Similarly, Hipstamatic still exists but lost its momentum in becoming the leader in the photography app market. 

The reason is clear: while they ignored external business developments (such as social media networks), more importantly, Hipstamatic failed to protect their core business with patents, thereby letting others swoop in to gain the upper hand. 

Here's our answer to the age-old question: file for a patent first or publish your idea first? You should definitely file your patent first, so you won’t have the same regrets as Hipstamatic. 

If you have any questions whatsoever, please don’t hesitate to contact us — after all, that’s what we’re here for!