While the KIN met with unfortunate fate, like the Zune (player) both have given Microsoft and users something for the future. The Zune HD gave us Metro and the KIN brought features like the Spot and Loop. It’s no surprise that in this patent application Microsoft has used the KIN since it shows added functionality to the KIN Spot. The KIN Spot allowed you to drag any picture to an omnipresent green dot at the screen’s bottom and it would allow you to forward that image to any contact by asking you fill in the contact details.
Now coming to how can Microsoft improve on this idea, how about dragging the image to the left corner of the screen and if there is another in the same direction the file gets transferred? A new patent application I came across explains how the flick gesture can be used along with some magic to find the phones in the corners (or possibly anywhere) of the broadcasting phones, you can send files without entering contact details.
The transfer can happen over local network (WiFi/Bluetooth) or Internet. the feature would make sense for landscape mode and would be a great evolution of the old pair with bluetooth to transfer files across phones!