Back in 2011, notorious patent troll Lodsys demanded .575% of revenue
from small app iOS app developers, if they used in-app purchases.
In-app purchases are a great source of revenue for many mobile app
developers, and Lodsys claims that they own the patent for it and must
be paid.
This is a textbook definition of a patent troll: Lodsys
does not practice in the mobile development market; their entire
business is to attempt to get a cut of revenue from other developers.
And rather for ask for big numbers, they only ask for a small percent,
which encourages developers to simply agree rather than go to court.
This strategy has been successful; Lodsys has reported to having more
than 150 companies that have agreed to their terms.
Interestingly
though, the big dog Apple has stepped in to protect its developers.
Usually I am highly critical of Apple but I think this is a bold move;
obviously Apple is mostly concerned with their own profit and wants to
retain its developer base, but regardless their actions are noble.
Apple's claim is that since they have previously licensed Lodsys'
patents, iOS developers are protected against those licenses. Google has
intervened as well, with similar claims in an attempt to protect their
Android developer base.
This is an interesting scenario that we
have not covered in class, and raises the question if these defense
claims by Apple and Google are valid. Although it slowed down Lodsys,
they certainly don't seem to think so, because now they are back with
more lawsuits then ever before:
http://arstechnica.com/tech-policy/2013/04/patent-troll-lodsys-sues-10-mobile-game-makers-despite-apples-intervention/
Only
time will tell if the great legal forces of Apple and Google will hold
up against Lodsys in court when it comes to protecting their small and
independent app developers. But at the very least, it's nice to know
that at least someone is offering some protection from these patent
trolls.
This is an interesting read. I'm glad though that Apple does have the back of the developers, and it is actually a pretty bold move on their part. It just goes to show that patent trolls are being challenged by big giants who are standing up against them.
ReplyDeleteIt's a respectable move from Apple to protect the developers who support the mobile market. Patent trolls seem to be targeting small businesses since they don't want to risk dealing with the big companies like Apple, but it seems like Lodsys barked up the wrong tree.
ReplyDelete