Saturday, May 14, 2011

LODSYS SUING iOS DEVS FOR IN-APP PURCHASING


A handful of iOS developers received letters this week from a patent holding firm claiming that their applications that offer in-app purchases infringe on 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 a similar warning to Apple, only individual developers confirmed receiving the document.

The developers are understandably unwilling to share too many details at this point -- even though Apple developed the framework, developers could still be liable. Lodsys appears to be in the business of launching suits referencing U.S. patent 7,222,078, having gone after Canon, HP, Samsung, and other giants earlier this year. As the developers that have come to light so far are independent, with limited budgets, some have reached out to Apple legal for assistance, and are awaiting response.

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