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 tv 4k new orange

New Apple TV Expected Later This Year With These New Features

Saturday July 12, 2025 3:09 pm PDT by
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Rumors Faster Wi-Fi Support The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
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...
iphone 16 pro pro max

iPhone 17 Pro Models With BOE Displays Will Be Sold in China Only

Thursday July 10, 2025 11:59 pm PDT by
iPhone 17 Pro and iPhone 17 Pro Max models with displays made by BOE will be sold exclusively in China, according to a new report. Last week, it emerged that Chinese display manufacturer BOE was aggressively ramping up its OLED production capacity for future iPhone models as part of a plan to recapture a major role in Apple's supply chain. Now, tech news aggregator Jukan Choi reports...
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,...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
iPhone 17 Air Colors Thumb 2

iPhone 17 and iPhone 17 Air Rumored to Come in These 9 Colors

Friday July 11, 2025 12:30 am PDT by
The iPhone 17 and iPhone 17 Air will be available in a total of nine color options, according to new information coming out of Asia. The iPhone 17 Air's expected color options. According to the leaker going by the account name "yeux1122" on the Korean blog Naver, accessory manufacturers are now producing camera protector rings for the iPhone 17 and iPhone 17 Air in colors to match their...

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)