Lodsys Targets Disney's 'Where's My Water?' and Others in New Round of Lawsuits Over In-App Purchasing

For nearly two years, we've been following the saga of patent troll Lodsys, which has been demanding licenses from and filing lawsuits against developers over in-app purchasing and related functionalities in their apps.

Apple quickly stepped in on behalf of iOS developers when the situation first arose in May 2011, claiming that its existing license with Lodsys covered developers using iOS development tools, and nearly a year ago Apple was granted limited permission to intervene in lawsuits filed against developers by Lodsys. While Lodsys initially focused on small developers, it did expand its scope to take on gaming heavyweights such as EA, Rovio, and Atari.

lodsys_logo_2012
News has been relatively quiet on the Lodsys front for the past year, although the firm did announce last October that a key claim of one of its patents had been upheld following reexamination and tout that it was achieving significant licensing momentum with over 150 companies already signed up to license some or all of the firm's four patents. Many of these firms are small developers who likely felt that taking out a license was a safer solution than trying to fight a lawsuit against Lodsys.

We've heard that Lodsys has continued to send out notices to app developers over the last few months, and yesterday the firm took on another big name in the industry by filing suit against Disney. As with many of the firm's other lawsuits, Lodsys is citing its '565 and '078 patents in alleging that Disney's apps, including the popular Where's My Water?, contain infringing functionality.

On information and belief, Disney manufactures, uses, sells, imports, and/or offersto sell infringing products and/or services — including but not limited to Disney’s applications such as Where’s My Water? — which infringe at least claims 1, 15, and 27 of the ‘565 patent under 35 U.S.C. § 271.

Prior to filing this complaint, Lodsys informed Disney of the patents-in-suit and offered to enter into a licensing arrangement that would allow Disney to continue practicing the inventions claimed in patents-in-suit. Disney, however, chose not to enter into a licensing agreement. Instead, with knowledge of the patents-in-suit and disregard for Lodsys’ patent rights, Disney chose to continue its infringement. On information and belief, Disney continued its infringement despite an objectively high likelihood that its actions constituted infringement of a valid patent (i.e., the ‘565 patent). Disney was made aware and, therefore, knew of the risk that it infringed the ‘565 patent. Accordingly, Disney acted knowingly, willfully, and with intent to infringe the patents-in-suit.

wheres_water_cranky
The lawsuit against Disney is just one of ten filed against app developers by Lodsys over the past several days, with other targets including major iOS developer Gameloft and Paper Toss and DragonVale developer Backflip Studios. Also targeted is TLA Systems, which consists of PCalc developer James Thomson, who was among the first to speak up about threats by Lodsys nearly two years ago.

pcalc_store
Lodsys now touts that over 200 companies hold for its patents, and it seems to be ramping up efforts to expand that number even further, using new lawsuits to pressure developers who have declined to enter into licensing agreements so far.

Lodsys is targeting not only app developers with its efforts, but also other companies such as major retailers Nordstrom, Burberry, and Godiva. In recent months, Lodsys has filed additional lawsuits against other companies including SanDisk, Volkswagen, Crocs, Dr Pepper Snapple, General Motors, and HP, demonstrating the broad range of companies being targeted by the effort.

It is currently unclear exactly where things stand with Apple's efforts to defend its developers from threats by Lodsys, but Lodsys has clearly been emboldened by its licensing and patent challenge successes and is continuing to take aggressive steps to capitalize on its patent holdings.

Popular Stories

iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
macbook pro blue green

M5 MacBook Pro No Longer Coming in 2025

Thursday July 10, 2025 12:38 pm PDT by
Apple does not plan to refresh any Macs with updated M5 chips in 2025, according to Bloomberg's Mark Gurman. Updated MacBook Air and MacBook Pro models are now planned for the first half of 2026. Gurman previously said that Apple would debut the M5 MacBook Pro models in late 2025, but his newest report suggests that Apple is "considering" pushing them back to 2026. Apple is now said to be...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive These Five Perks

Wednesday July 9, 2025 9:20 am PDT by
If you pay for iCloud storage on your iPhone, did you know that Apple offers you five perks beyond the extra storage space, at no additional cost? Here are the perks included with all iCloud+ plans:Private Relay keeps your Safari browsing history entirely private from network providers, websites, and even Apple. Hide My Email generates unique, random email addresses whenever needed. Hom...

Top Rated Comments

Rudy69 Avatar
160 months ago
That's AWESOME! Finally they have bitten more then they can chew. I hope Disney will put these trolls out of business. They're really hurting indie developers :/
Score: 26 Votes (Like | Disagree)
Mousse Avatar
160 months ago
I'm rooting for Lodsys on this one. I hope the win and in-app purchasing dies because no one wants to license it.
Score: 18 Votes (Like | Disagree)
Serelus Avatar
160 months ago
Till this day, I do not understand how Patent Trolling is not illegal in the united states, how about simply forbidding these kind of practices? If you're not planning on contributing to the product, you don't get the patent. If you plan on contributing to that product but you haven't done so for at least 5 years.. your patents are revoked, simple as that... WHY this is still a problem in the US is beyond me.
Score: 16 Votes (Like | Disagree)
lifeinhd Avatar
160 months ago
I love how Lodsys is described in the article-- on a site known for its objectivity-- as being a "patent troll." No shame whatsoever :D
Score: 16 Votes (Like | Disagree)
jav6454 Avatar
160 months ago
Good luck against Disney.
Score: 15 Votes (Like | Disagree)
DirtySocks85 Avatar
160 months ago
I think either of these quotes sum this up rather well:

"I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve." - Admiral Isoroku Yamamoto, Tora! Tora! Tora!

"I've made a huge mistake" - Arrested Development

----------

I love how Lodsys is described in the article-- on a site known for its objectivity-- as being a "patent troll." No shame whatsoever :D

Well, it would be a different story if Lodsys were legally fighting Apple on this, but they aren't. They "licensed" the patent to Apple, and then turned around and starting filing lawsuits against all of the developers that were using the Apple license. This reeks of planned malevolence from the start.
Score: 8 Votes (Like | Disagree)