A very intriguing patent document was spotted over at the US Patent & Trademark Office that was filed by none other than Palm Inc on November 26, 2008 that could have implications on not only the Palm Pre and WebOS but the mobile market in its entirety. The patent calls for the ability to store user-specific data in order to serve geo-targeted advertisements to users:

A mobile device includes a processor and a memory coupled to the processor and configured to store user-specific data. The processor is configured to access data indicating a position of the mobile device and provide advertisement data based upon the position of the mobile device and the user-specific data.

People are already wondering if this ties into the hidden WebOS feature uncovered last month that caused a backlash – WebOS has access to your information and sends it back to Palm! The folks at BGR are thinking worst-case scenario, total invasion of privacy and we can’t blame them based on the following quote dug up from the patent filing:

Based upon the location data from the appointment and the location of device 310 (or other alternative location provided by the user), processor 340 may then provide advertisement data (step 386), for example, along the driving route between the location of the appointment and the current location of device 310 within a predetermined distance of the location of the appointment and/or the current location of device 310, and so on.

So basically, Palm could use your calendar and appointment information to their own advantage when serving you ads… they’ll essentially know what you’re doing and where you’re going and try to suck you in with whatever ads they can knowing this information. Is this a total invasion of privacy and will it happen?

This IS the PalmWebOS.org website so we’re going to try and see the positive in all this. Normally it would be called playing the Devil’s Advocate but since BGR is already thinking this is bad as hell, we’re pretty much playing the opposite – Angel’s Advocate.

What if Palm used this WebOS enabled location and activity based ad serving in order to subsidize both the cost of your phone and your mobile phone service? That’s right… you get a free phone and free or severely discounted service as long as you let us show you relevant ads based on your location, preferences and other factors. YOU might not want to agree to such terms but I promise you there are PLENTY of people who would gladly save a whole heap of money for free access to an elite device.

I’m not going to sift through this entire patent application but I’m also curious how this patent is even valid – geo-targeted advertisements aren’t a new idea but rather a common concept that is already in practice. Just take a look at Google Adwords/Adsense for proof. Google could very much do the same thing with Android and if THEY made a free phone and free service in exchange for seeing ads we wouldn’t be surprised – Google is innovative and expiremental and to be honest the idea is great.

But would Palm do this? With their new management, perhaps. Or maybe Palm will use the feature to provide application developers with a way to monetize their applications. If you download the application you would agree to Terms Of Service upon download/installation and would automatically agree to see these ads. They could make a lot of money if their ad serving solution pans out.

It seems like everyone is playing the privacy card these days – really, must me throw up the red flag before anything is implemented? You have to know that Palm would allow consumers to opt out of such services so why flip out now when we already know they’ll give you the option to deny them access to your personal information? At the most basic level they could be offering advertisement and monetization solutions to developers which would be a great service to provide and probably a nice income stream for the company. If you don’t like the inclusion, don’t download and use the app – simple as that.

And on the most grand level I still believe that an ad-subsidized mobile phone and mobile plan would open up a new world of opportunities in the mobile market. Far fetched? Perhaps… you be the judge.