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Lodsys warns iOS devs, alleges in-app purchases infringe its patent

Lodsys warns iOS devs, alleges in-app purchases infringe its patent
A handful of iOS developers received letters this week from a patent holding firm claiming that their applications that supply in-app purchases infringe at the firm’s intellectual property (IP). The letter threatens legal action if developers don’t license the patent within 21 days. Lodsys, the firm in question, has apparently patented a system that collects usage data and facilitates feedback between a customer and vendor, though it doesn’t address financial transactions specifically. The allegedly infringing applications use Apple’s in-app purchase tool to encourage users to upgrade to a paid version after downloading a free app. Though it’s possible that Lodsys has sent an analogous warning to Apple, only individual developers confirmed receiving the document. This makes us wonder whether the corporate is skipping the well-armed big target in favor of the little guys.

Several developers posted on Twitter after receiving the letters, including Patrick McCarron (Shanghai for iPad), James Thomson (PCalc), and Matt Braun (MASH). They’re understandably unwilling to share too many details at this point — despite the fact that Apple developed the framework, developers could still be liable. Lodsys seems to be within the business of launching suits referencing U.S. patent 7,222,078, having gone after Canon, HP, Samsung, and other giants earlier this year. Because the developers that experience come to light thus far are independent, with limited budgets, some have reached out to Apple legal for assistance, and are awaiting response. We’re not seeing the relationship between the patent and in-app purchases, though that’s ultimately as much as a federal court to establish, if the firm even files a lawsuit. Drama in its finest form, folks.

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