Applied Predictive Technologies

APT was founded in December 1999{{cite web |title=Applied Predictive Technologies |url=https://www.bloomberg.com/profile/company/800757Z:US#xj4y7vzkg |work=Bloomberg News |access-date=June 1, 2023}} by business consulting executives Jim Manzi (Oliver Wyman), Anthony Bruce (McKinsey & Company), and Scott Setrakian (Oliver Wyman).{{cite web| last = Hayes| first = Heather B.| title = 2006 Fantastic 50: Applied Predictive Technologies| date = May 2006| url = http://www.gatewayva.com/biz/virginiabusiness/magazine/yr2006/may06/fan50_apt.shtml| accessdate = 18 September 2009| archiveurl = https://web.archive.org/web/20080627192817/http://www.gatewayva.com/biz/virginiabusiness/magazine/yr2006/may06/fan50_apt.shtml| archivedate = 27 June 2008}} Manzi had the initial idea for APT in 1988 when he thought of a test he could apply to a bank and its branches.{{cite news |title=APT has a legion of geeks that help analyze data so companies can make better decisions |last1=Heath |first1=Thomas |url=https://www.washingtonpost.com/business/apt-has-a-legion-of-geeks-that-help-analyze-data-so-companies-can-make-better-decisions/2013/10/17/e2ad1cce-359c-11e3-be86-6aeaa439845b_story.html |newspaper=The Washington Post |date=October 18, 2013 |access-date=June 1, 2023}} He explained to The Washington Post that "a lot of the work I was doing as a consultant was very repetitive. I realized how much of it could be put into a software model.”McCarthy, Ellen. "Applied Predictive Technologies Makes Consulting Automatic." The Washington Post 20 August 2001. E5. Print. In September 2001, the company signed its first client. It expanded, and in 2006, Accel-KKR acquired a majority stake in APT with a $54 million investment, and in 2013, Goldman Sachs invested $100 million.{{Cite web|url=http://www.computing.co.uk/ctg/news/2277726/what-does-goldman-sachs-usd100m-investment-in-apt-mean-for-big-data-analytics|title = What does Goldman Sachs' $100m investment in APT mean for big data analytics?|date = 27 June 2013}} Mastercard acquired APT for $600 million in 2015.{{cite news |title=What does Ballston firm have that drew $600 million from MasterCard? |last1=Heath |first1=Thomas |url=https://www.washingtonpost.com/business/capitalbusiness/what-does-ballston-firm-have-that-drew-600-million-from-mastercard/2015/04/30/197c5642-ef5b-11e4-8abc-d6aa3bad79dd_story.html |newspaper=The Washington Post |date=April 30, 2015 |access-date=June 1, 2023}}

APT (now Mastercard) produces test and learn software for business analytics.{{Cite news| last = Davenport| first = Thomas H.| title = How to Design Smart Business Experiments| newspaper = Harvard Business Review| date=February 2009}}

In February 2011, APT was awarded a patent that protects its core analytic technology for designing an in-market test and on matching test stores to control stores.{{cite web| title = United States Patent No. 7,895,072| url = http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=9&f=G&l=50&co1=AND&d=PTXT&s1=20110222.PD.&s2=%28VA.ASST.%29&OS=ISD/02/22/2011+AND+AS/VA&RS=ISD/02/22/2011+AND+AS/VA| date = 22 February 2011| accessdate = 9 February 2012}} One of the company's patents was invalidated in 2020 by the US district court.{{cite web| title = MEMORANDUM DECISION| url = https://www.courtlistener.com/recap/gov.uscourts.utd.115695/gov.uscourts.utd.115695.129.0.pdf| date = 25 November 2020| accessdate = 23 December 2020}}

Commercial applications of APT's Test & Learn software have included food companies evaluating effects of new items on sales of existing products,{{cite news |title=Meet the man helping companies like Wawa and McDonald's make winning decisions using big data |last1=Wells |first1=Nick |last2=Chemi |first2=Eric |url=https://www.cnbc.com/2017/08/16/the-man-helping-wawa-and-mcdonalds-make-winning-decisions-using-big-data.html |work=CNBC |date=August 16, 2017 |access-date=June 29, 2023}} as well as whether a promotional discount would be offset by increased sales of other products.{{cite news |title=From pizzas to cocktails the data crunching way |last1=Wall |first1=Matthew |url=https://www.bbc.com/news/business-33892409 |work=BBC |date=August 18, 2015 |access-date=June 29, 2023}} The software has also been used non-commercially to analyze the effectiveness of a 911 diversion program for mental health related calls the city of St. Louis, Missouri launched in 2021.{{cite news |title=St. Louis mental health diversion programs helped residents and saved the city $2.6M |last1=Lippmann |first1=Rachel |url=https://news.stlpublicradio.org/law-order/2022-02-17/st-louis-mental-health-diversion-programs-help-people-and-save-money |work=St. Louis Public Radio |date=February 17, 2022 |access-date=June 29, 2023}}

APT filed a lawsuit against the company MarketDial in June 2018 alleging that MarketDial's co-founders stole trade secrets that they had access to while working as consultants, and that the company infringed on a patent held by APT. The patent infringement claim was dismissed by a judge in November 2020, along with claims of civil conspiracy and fraud.{{cite web |last1=Yasiejko |first1=Christopher |date=June 29, 2018 |title=Mastercard Claims Ex-Contractor Stole Secrets, Infringes Patent |url=https://news.bloomberglaw.com/ip-law/mastercard-claims-ex-contractor-stole-secrets-infringes-patent |access-date=April 7, 2023 |work=Bloomberg Law}}{{cite web |last1=Jackson |first1=Jasmin |date=April 11, 2022 |title=Judge Trims MasterCard Unit's IP Suit Over Analytics Software |url=https://www.law360.com/articles/1482576/judge-trims-mastercard-unit-s-ip-suit-over-analytics-software |access-date=April 7, 2023 |work=Law360}}

In April 2024,{{Cite web |title=Utah tech company wins six-year legal battle — for now. The startup says they defeated ‘Goliath.’ |url=https://www.sltrib.com/news/business/2024/09/11/salt-lake-startup-marketdial/ |access-date=2024-09-11 |website=The Salt Lake Tribune |language=en-US}} the presiding judge granted{{Cite web |date=19 August 2024 |title=Applied Predictive Technologies, Inc. v. MarketDial, Inc. et al; Filing 689 |url=https://docs.justia.com/cases/federal/district-courts/utah/utdce/2:2019cv00496/115695/689 |website=Justia}} MarketDial's request for summary judgment. According to Bloomberg Law:

"[Judge] Parrish concluded APT fell well short of explaining what particular elements of its documents were not widely ascertainable or establishing how each had independent economic value as a secret.

“'Summary judgment was Plaintiff’s chance to put its cards on the table and make an argument, rather than simply string-cite exhibits and insist that from the mosaic of exhibits a trade secret might emerge at trial,' Parrish wrote. 'Simply stated, this court will not do APT’s job for it by mining its trade secrets from the raw materials, dusting off known information and techniques, and preparing its case for submission to the jury.'

"She also expressed 'grave doubt' that APT had shown the information claimed as a trade secret was improperly acquired or used."{{Cite web |last=Jahner |first=Kyle |date=13 Aug 2024 |title=Mastercard Unit Failed to Define Trade Secrets, Utah Court Says |url=https://news.bloomberglaw.com./tech-and-telecom-law/mastercard-unit-failed-to-define-trade-secrets-utah-court-says |access-date=14 Aug 2024 |website=Bloomberg Law}}

In March 2025, the presiding judge "...ordered [APT / Mastercard] to cough up over $2.8 million in legal fees for 'aggressively' litigating an 'objectively specious' trade secrets suit..." This decision is currently pending appeal.{{Cite web |last=Karpan |first=Andrew |date=28 March 2025 |title=Failed Software Secrets Case Costs MasterCard Unit $2.8M |url=https://www.law360.com/pulse/articles/2317264/failed-software-secrets-case-costs-mastercard-unit-2-8m |access-date=2025-04-02 |website=www.law360.com |language=en}}

• Test and learn

{{Reflist}}

• [https://www.mastercardservices.com/en/solutions/data-networks/test-learn Official website]

Category:Software companies based in Virginia

Category:Privately held companies based in Virginia

Category:Software companies established in 1999

Category:Companies based in Arlington County, Virginia

Category:1999 establishments in Virginia

Category:Defunct software companies of the United States

Category:2015 mergers and acquisitions