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

maxresdefault

Apple Releases iOS 18.4 With Priority Notifications, Ambient Music, New Emoji and More

Monday March 31, 2025 10:03 am PDT by
Apple today released iOS 18.4 and iPadOS 18.4, the fourth major updates to the iOS 18 and iPadOS 18 operating system updates that came out last year. iOS 18.4 and iPadOS 18.4 come two months after Apple released iOS 18.3 and iPadOS 18.3. Subscribe to the MacRumors YouTube channel for more videos. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to...
iOS 19 Mock WWDC25 Feature

iOS 19 Expected to Run on These iPhones

Monday March 31, 2025 5:28 pm PDT by
iOS 19 will not be available on the iPhone XR, iPhone XS, or the iPhone XS Max, according a private account on social media site X that has accurately provided information on device compatibility in the past. The iPhone XR, iPhone XS, and iPhone XS Max all have an A12 Bionic chip, so it looks like iOS 19 will discontinue support for that chip. All other iPhones that run iOS 18 are expected...
iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT 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. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 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 ...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 2 and AirPods 4

Monday March 31, 2025 11:27 am PDT by
Apple today released new firmware updates for all AirPods 4 and AirPods Pro 2 models. The new firmware is version 7E93, up from the 7B21 firmware that was installed on the AirPods Pro 2 and the 7B20 firmware available on the AirPods 4 and AirPods 4 with ANC. It is not immediately clear what new features or changes are included in the new firmware, but we'll update this article should we find ...
top stories 2025 03 29

Top Stories: WWDC 2025 Announced, iPhone 17 Pro and iOS 19 Rumors, and More

Saturday March 29, 2025 6:00 am PDT by
Apple's big developer event is a little over two months away, and rumors about what we can expect to see in Apple's next major operating system updates are becoming increasingly frequent. A public release of iOS 18.4 is also imminent with a number of updates and improvements, although we won't be getting the major Apple Intelligence Siri upgrades that had reportedly been planned for this...
macOS Sequoia Feature

Apple Releases macOS Sequoia 15.4 With Mail Categorization and More

Monday March 31, 2025 10:04 am PDT by
Apple today released macOS Sequoia 15.4, the fourth major update to the macOS Sequoia operating system that launched in September. macOS Sequoia 15.4 comes two months after the launch of macOS Sequoia 15.3. Mac users can download the ‌‌macOS Sequoia‌‌ update through the Software Update section of System Settings. It is available for free on all Macs able to run macOS 15. With...
iOS 19 visionOS UI Elements

Apple Codename Provides Clue About iOS 19's Rumored New Design

Sunday March 30, 2025 6:40 am PDT by
Multiple sources have claimed that iOS 19 will introduce a new design with more translucent buttons, menus, notification banners, and more, and there is now another clue that points towards this glass-like appearance. Bloomberg's Mark Gurman today said the new design project is codenamed "Solarium" internally. A solarium is a room with glass walls that allow in plenty of sunlight, so this...
Magic Mouse Green

What to Expect From the Magic Mouse 3

Saturday March 29, 2025 10:15 am PDT by
Apple is reportedly working on a new Magic Mouse. Below, we recap what to expect. The two key rumors for the Magic Mouse 3 so far include a relocated charging port, along with a more ergonomic design. It was briefly rumored that the Magic Mouse 3 would also feature voice control, but that was misinterpreted information. Relocated Charging Port While the Magic Mouse switched from...

Top Rated Comments

nagromme Avatar
163 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
163 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
163 months ago
How, exactly, can the idea of in-app purchases even be patented...?
Score: 21 Votes (Like | Disagree)
ThunderSkunk Avatar
163 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
163 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
163 months ago
Cannot wait for the patent reform.
Score: 12 Votes (Like | Disagree)