Lodsys Offers Update on In App Purchase Patent Dispute, Claims Licensing Momentum

Nearly a year and a half ago, patent holding firm Lodsys threatened to file suit against App Store developers making use of Apple's In App Purchase mechanism, claiming that they were infringing upon patents held by Lodsys.

Apple stepped in to protect developers, ultimately filing a motion to intervene in the lawsuits being pursued by Lodsys against developers who were unwilling to license the patents in question. Earlier this year, Apple was granted limited permission to intervene in the case to the extent that it could seek to demonstrate that its existing license with Lodsys covers developers' usage of In App Purchase.

lodsys logo 2012
There has been relatively little news on the Lodsys situation over the past six months, but Lodsys today published a blog post providing a status update. According to Lodsys, the U.S. Patent and Trademark has upheld the validity of a key claim of one of the major patents in question, stymying efforts by Google to have the patent invalidated entirely.

As a part of the Inter-Parties Reexamination requested by Google, the USPTO recently issued an Office Action confirming Claim 24 of US Patent 7,222,078. This claim is particularly relevant regarding in-app purchases and free-to-paid application upgrades. In addition, we have every confidence that all claims will ultimately be confirmed through this lengthy process. In-app purchase features and free-to-paid upgrades will be a part of the litigation process that is now swiftly moving forward.

Lodsys goes on to note that Apple is continuing to press forward with its assertions that patent rights have been exhausted via Apple's license to the patents, thereby protecting developers from Lodsys' actions. Lodsys obviously contests that assertion, and a trial on the issue is scheduled for early 2013.

In a separate blog post, Lodsys notes that it has gained licensing momentum, now having reached agreements with 150 developers to license the In App Purchase patents, with over 80% of those licenses being obtained without involving litigation.

As of October 8, 2012, there are greater than 150 companies which obtained the rights to use the Lodsys Group patent portfolio, and more than 4 out of 5 of these companies have entered into licenses outside of the litigation process. These companies have realized significant savings by taking advantage of lower licensing rates.

Lodsys has taken on companies big and small with its effort, initially focusing primarily on smaller developers but later taking on heavyweights such as Rovio, EA, and Atari. Lodsys' plan has been to provide developers with notices of infringement, giving developers 21 days to obtain a license before filing suit.

It seems that most developers have elected to simply license the patents rather than incurring the expense and time commitment necessary to fight a lawsuit, but others have not backed down and with the assistance of Apple, Google, and other larger companies have been seeking to hold out against Lodsys.

Popular Stories

Generic iOS 18

iOS 18.3 Coming Soon: Here's What's New

Monday January 13, 2025 5:33 am PST by
iOS 18.3 is currently in beta for developers and public beta testers. So far, the upcoming iPhone software update is very minor in scope. Below, we outline what is new in iOS 18.3 so far. The only potential new feature coming to iPhones with iOS 18.3 so far is robot vacuum support in the Home app, but this functionality is not yet live. Apple is laying the groundwork for the feature,...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Launching Later This Year With These 10 New Features

Wednesday January 15, 2025 7:16 am PST by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the "ultra-thin" device. Overall, the "iPhone 17 Air" is shaping up to be a mixed bag. Due to its thinness, the device is expected to have some limited specifications compared to the iPhone 17 Pro models, including only a single rear camera, only a single speaker, no SIM...
new magsafe charger

Apple Releases Updated MagSafe Charger Firmware

Tuesday January 14, 2025 11:30 am PST by
Apple today released new firmware designed for the 25W MagSafe Charger that is compatible with the iPhone 12 and later and the latest AirPods and Apple Watch models. The updated firmware is version 2A143, up from the 2A138 firmware that the accessory shipped with. In the Settings app, you'll see a different version number than the internal firmware number. The 2024 MagSafe charger was...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Launching Later This Year With These 8 New Features

Thursday January 9, 2025 5:45 am PST by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. iPhone 17 Pro concept based on rumors Below, we recap key changes rumored for the iPhone 17 Pro models as of January 2025: More aluminum: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models ...
HomePod mini and Apple TV

HomePod Mini 2 and New Apple TV Launch Timeframe Narrowed Down

Sunday January 12, 2025 4:11 pm PST by
Bloomberg's Mark Gurman recently reported that Apple plans to release new HomePod mini and Apple TV models this year, and now he has provided a more precise timeframe. In his Power On newsletter today, Gurman said Apple is currently aiming to launch the new HomePod mini and Apple TV models "toward the end of the year." That timeframe suggests the devices will be released at some point...
severance new york promo 1

Apple Promotes Severance Season 2 Premiere With Lumon Industries Pop-Up and Visits From Actors

Tuesday January 14, 2025 3:47 pm PST by
Ahead of the season two premiere of hit TV show Severance, Apple is marketing the show with a fun Severance pop-up at the Grand Central Terminal in New York City. Apple has assembled a glass cube with workstations that are identical to the setups that Lumon employees use on the show, complete with employees "working," doing yoga, playing catch, throwing paper airplanes, sipping coffee, and...
airpods pro 2 gradient

AirPods Pro 3 Expected This Year: Here's What We Know

Wednesday January 8, 2025 7:05 am PST by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch sometime in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as...
General Apps Messages Redux

Phishing Attacks Use This Simple Trick to Defeat iPhone Message Security

Monday January 13, 2025 6:11 am PST by
A new social engineering tactic is being used by cybercriminals to trick iPhone users into disabling iMessage's built-in phishing protection, in a bid to expose them to malicious links and scams, according to BleepingComputer. The scam exploits a security feature in iMessage that automatically disables links from unknown senders. Apple told the outlet that when users reply to these messages...

Top Rated Comments

nagromme Avatar
160 months ago
“Licensing momentum” = “extorting small developers, who cannot afford to defend themselves even when they’re right, to share their livelihood with people who contributed nothing.”

A new frontier in euphemism!
Score: 37 Votes (Like | Disagree)
jav6454 Avatar
160 months ago
The whole Lodsys lawsuit should be thrown out. Apple paid the royalty, developers are using something Apple already paid.
Score: 21 Votes (Like | Disagree)
Pakaku Avatar
160 months ago
How, exactly, can the idea of in-app purchases even be patented...?
Score: 21 Votes (Like | Disagree)
ThunderSkunk Avatar
160 months ago
Lodsys is the main reason our company won't rewrite our proprietary Cad software for iOS. Our attorneys aren't the only ones coming to that conclusion. The iPad's been doing great in sales, but to truly become the computer of the future, Lodsys will have to be destroyed.
Score: 14 Votes (Like | Disagree)
faroZ06 Avatar
160 months ago
I would complain about this being a bogus patent, but I also hate in-app purchases, so it's OK. I don't want to buy a game for $1 then have to buy every @#$%ing level in the game for $2 each.

Still, the idea of this poop pile (Lodsys) making money in general doesn't sit well with me. Just looking at the Wikipedia article (http://en.wikipedia.org/wiki/Lodsys) makes me wish the entire company would die of lawsuits and extreme debt. They haven't made a single product! All they do is patent troll for money! What poor excuses for human beings! They sue everyone from Apple to HP to Adidas for invalid patents.
Score: 13 Votes (Like | Disagree)
kolax Avatar
160 months ago
Cannot wait for the patent reform.
Score: 12 Votes (Like | Disagree)