Lodsys Publishes May 2011 Legal Response to Apple's Challenge

Over the past two years, a number of app developers have been contacted by patent holding firm Lodsys, demanding licenses for and in some cases filing suit over patents related to in-app purchasing and other functionalities. Earlier this month, Lodsys gained renewed attention when it began a new round of lawsuits targeting a number of developers large and small, including Disney and Gameloft.

At the time of Lodsys' initial effort to extract licenses from App Store developers, Apple's General Counsel Bruce Sewell sent a letter to Lodsys backing App Store developers and claiming that Apple was "undisputedly licensed" to Lodsys' patents through an arrangement that also protected app developers. Apple later requested and was given limited permission to intervene in at least some legal proceedings on behalf of targeted developers.

lodsys_logo_2012
Lodsys had responded to Apple's claims of protection for developers with both public blog posts and a private legal response to Apple in May 2011, and Lodsys had encouraged Apple to publish that legal response, but Apple apparently declined to do so.

In response to requests from developers seeking more information from Lodsys on the basis for its claims, Lodsys today released a redacted version of its initial legal response to Apple, dated May 31, 2011. Redactions include the removal of specific discussion of Apple's license terms with Lodsys.

The letter outlines a number of arguments as to why developers are not covered by Apple's license with Lodsys, pointing to Apple's own developer program agreements that strictly limit its relationships with developers to agency appointments rather than any broader business agreements.

First, you assert that, "[u]nder its license, Apple is entitled to offer these licensed products and services to its customers and business partners, who, in turn, have the right to use them." May 23 Letter at 1 (emphasis added). But, based on our review of [sic] publically available information, we understand that Apple expressly disclaims that App Makers are "business partners."

The response from Lodsys then proceeds to walk through six other arguments against Apple's claim that app developers are protected through Apple's license, including discussions of sublicensing, Apple's express disclaimer of any ownership interest in third-party apps, Apple's insistence that developers are solely responsible for liabilities related to their apps, and pass-through licensing issues.

Nearly two years later, the initial dispute remains unresolved, and Lodsys continues to contact developers in order to obtain licenses to its technologies with over 200 entities large and small now licensed for Lodsys' patents. Many smaller developers have found it simpler to agree to licenses representing small percentages of their revenue rather than face the prospect of lawsuits from Lodsys, but others remain in the crosshairs as Lodsys continues to stake its claims.

Popular Stories

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in Three Months With These 12 New Features

Saturday June 14, 2025 5:45 pm PDT by
The iPhone 17 Pro and iPhone 17 Pro Max are three months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X through iPhone 14 Pro have a...
apple watch ultra 2 new black

Apple Watch Ultra 3 Finally Coming After Two-Year Hiatus

Monday June 16, 2025 8:45 am PDT by
Apple will finally deliver the Apple Watch Ultra 3 sometime this year, according to analyst Jeff Pu of GF Securities Hong Kong (via @jukanlosreve). The analyst expects both the Apple Watch Series 11 and Apple Watch Ultra 3 to arrive this year (likely alongside the new iPhone 17 lineup, if previous launches are anything to go by), according to his latest product roadmap shared with...
Logitech Logo Feature

Logitech Announces Two New Accessories for WWDC

Friday June 13, 2025 7:22 am PDT by
Alongside WWDC this week, Logitech announced notable new accessories for the iPad and Apple Vision Pro. The Logitech Muse is a spatially-tracked stylus developed for use with the Apple Vision Pro. Introduced during the WWDC 2025 keynote address, Muse is intended to support the next generation of spatial computing workflows enabled by visionOS 26. The device incorporates six degrees of...
iPadOS 26 App Windowing

Apple Explains Why iPads Don't Just Run macOS

Friday June 13, 2025 7:46 am PDT by
iPadOS 26 allows iPads to function much more like Macs, with a new app windowing system, a swipe-down menu bar at the top of the screen, and more. However, Apple has stopped short of allowing iPads to run macOS, and it has now explained why. In an interview this week with Swiss tech journalist Rafael Zeier, Apple's software engineering chief Craig Federighi said that iPadOS 26's new Mac-like ...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday June 12, 2025 8:58 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
terminal macos tahoe

Apple's Terminal App Gets Colorful Redesign in macOS Tahoe

Monday June 16, 2025 4:12 am PDT by
Apple's Terminal app is getting a visual refresh in macOS Tahoe, and it's the first notable design update since the command-line tool debuted. The updated Terminal will support 24-bit color and Powerline fonts, according to Apple's State of the Platforms presentation at WWDC25. The app will also adopt the new Liquid Glass aesthetic with redesigned themes that align with macOS 26's broader...
apple watch ultra snow

6 Features Coming to the Apple Watch Ultra 3

Tuesday February 25, 2025 9:00 am PST by
The Apple Watch Ultra 3 is expected to launch later this year, arriving two years after the previous model with a series of improvements. While no noticeable design changes are expected for the third generation since the company tends to stick with the same Apple Watch design through three generations before changing it, there are a series of internal upgrades on the way. By the time the ...
iOS 26 Feature

Apple Seeds Revised iOS 26 Developer Beta to Fix Battery Issue

Friday June 13, 2025 10:15 am PDT by
Apple today provided developers with a revised version of the first iOS 26 beta for testing purposes. The update is only available for the iPhone 15 and iPhone 16 models, so if you're running iOS 26 on an iPhone 14 or earlier, you won't see the revised beta. Registered developers can download the new beta software through the Settings app on each device. The revised beta addresses an...

Top Rated Comments

nepalisherpa Avatar
159 months ago
What a "load" of ****! But, then again, I don't mind seeing all these "freemium" apps gone! :D
Score: 9 Votes (Like | Disagree)
bmunge Avatar
159 months ago
You are wrong. They exist purely to hold patents and make a business out of licensing them.

Only when miscreants steal their property are they forced to sue anybody.

HTH.
They are manipulating a flaw in our judicial system for the sake of profit. They have no viable claim of ownership of the IAP system. It's a ridiculous scheme that seeks to exploit app developers.
Score: 8 Votes (Like | Disagree)
zin Avatar
159 months ago
Lodsys is a patent holding company. Correct me if I'm wrong, but these exist purely to hold patents and make a business out of suing people who they claim to be in violation of their patents, whilst not necessarily being related in any way to the actual inventors or original filers of them, nor do they actually use the patents themselves to create products or deliver services?

It's things like this that clog up the justice system. There must be a backlog of patent cases just like this. The whole system needs dumping and redoing.
Score: 8 Votes (Like | Disagree)
jclardy Avatar
159 months ago
I have to correct you. Patent holding companies do not "make a business out of suing people". They exist to advance innovation by rewarding the inventors. They collect patents and license them to tech companies. Just like, say, music record companies or publishing companies work with musicians and writers. Then of course, some companies use inventor ideas but do not want to pay. That's where lawsuits come into picture. Apple does the same to protect their intellectual property (but on much bigger scale than any "patent troll").

I'm all for giving credit where credit is due. But the issue is that this is a ridiculously stupid patent. It is essentially a patent on clicking a button to purchase a digital commodity.

The real issue is that software patents like these get issued in the first place. They should require an actual functioning implementation and not just an idea.
Score: 6 Votes (Like | Disagree)
Gasu E. Avatar
159 months ago
You are wrong. They exist purely to hold patents and make a business out of licensing them.

Only when miscreants steal their property are they forced to sue anybody.

HTH.

No, Lodsys is a shell company which shares an address (down to the suite number) with a number of other shell companies in a small office in Marshall, Texas. They have no one actively marketing these patents. It's just a lawsuit factory.

I would suggest you try reading one of their patents (you can find them listed in their entry in wikipedia), then justify your use of the word "miscreant".
Score: 5 Votes (Like | Disagree)
zin Avatar
159 months ago
I have to correct you. Patent holding companies do not "make a business out of suing people". They exist to advance innovation by rewarding the inventors...
But their website states that the inventor of the patents does not receive any revenue from licenses. The only entities receiving revenue are the new owners and Lodsys, which are not innovating using the patents as the inventor would have, but rather making profit purely from holding them. I don't understand how that is advancing innovation.

It seems to me as though Lodsys are merely acting as middlemen in the name of profit.
Score: 5 Votes (Like | Disagree)