Sparks Networks (owner of JDate) has suffered some significant losses in the last few years, but it’s difficult to point the finger at companies like JSwipe when Sparks simply hasn’t kept up with the times. Unsurprisingly, most people would rather not pay for online dating services when there are so many that are free to use. JDate could have ventured into the world of ad-based revenue with a free app, and, prior to 2014, they could have even called such an app “JSwipe.” With apps like Tinder on the rise, JDate should have seen this coming.
Instead of trying to find a way to stay relevant, however, JDate is suing the little guy, whose status as such is bolstered by the fact that JSwipe started a crowdfunding campaign to pay for the legal fees associated with this lawsuit. Some have said that Sparks is simply trying to bully JSwipe into selling the company to them. The fact that JSwipe is not yet in the black, but was likely just about to get there, seems to support this assumption. The simple fact is that Sparks needs to recover some lost cash, and acquiring or at least dismantling some of the competition would be a good start.
Many commentators have labeled the lawsuit as a “David and Goliath” battle. In this situation, however, Goliath is getting old, and David didn’t really want to fight him in the first place. Will the outcome be the same as in the ancient tale? Stick around for updates.
By Brian Unger
