Lodsys Responds To Clarify Their Patent Infringement Case

Lodsys, LLC has chosen to use their blog to explain their perspective, and reasoning behind issuing legal threats to independent iOS developers. The biggest take away from their Q&A posts is that Apple already has a license for the patent. Lodsys claims,

“The scope of their current licenses does NOT enable them to provide “pixie dust” to bless another (3rd party) business applications.” Lodsys believes that their current licensee doesn’t entitle any company to provide services to third party developers.

Google and Microsoft both have licenses as well, but again the licenses don’t cover third party developers, so we’ll see what happens to Andoird and Windows Phone 7 developers. Overall Lodsys thinks it is just trying to sell its product, in this case patent rights, and doesn’t want any ‘free riders’. They would prefer for each third party developer to negotiate a license with them rather than use litigation as it’s more cost effective to do so.

It ultimately comes down to money, and Lodsys is seeking, “0.575% of US revenue over for the period of the notice letter to the expiration of the patent, plus applicable past usage.” To put that in perspective, an app that made $1 million through that method would pay Lodsys $5,750.

Their blog posts continue by comparing an OS ecosystem to a hotel:

“It is the owner of the hotel who is responsible for the overall service (value proposition) that guests pay for, not the owner of the land that the hotel may be leasing, not the travel agent that sold the reservation, not the manufacturer of tools such as hammers, nor the provider of materials such as nails or steel beams, which may be used in building the hotel; nor is it the outsourced linen washing service or the architect of the building who is responsible.”

One final takeaway is that the company has received death threats. They definitely seem to be going about this the wrong way, but for anyone to threaten death over this is absurd.

Check back to Apple’N’Apps for more information regarding this story as it becomes available.

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