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Old Aug 8, 2013, 10:40 AM   #1
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Lodsys Agrees to Dismiss Patent Case Against Small Developer for a Charitable Donation




Back in May 2011, patent holding firm Lodsys began threatening lawsuits against a number of small iOS developers, alleging infringement of a Lodsys-held patent through the use of Apple's in-app purchase and upgrade functionalities. The case was an interesting one because small developers were being held liable for their use of Apple's supported tools for iOS apps, with Apple agreeing to back the developers and claiming that Apple's existing license with Lodsys automatically extended to cover third-party developers using those tools.

Lodsys continued to pressure developers, both large and small, to take out their own licenses for Lodsys' patents, with many developers choosing to purchase licenses rather than fight in court. Lodsys now claims over 200 licensees for its patents.

While news about Lodsys had been relatively quiet through late 2012 and early 2013, the firm once again made a splash in April of this year when it filed suit against Disney, Gameloft, and several other developers and companies. Aside from a brief June announcement from Lodsys noting that Angry Birds developer Rovio has taken a license for Lodsys' patents, things had once again turned quiet through the middle of this year.

But as noted in a blog post today from developer Todd Moore, whose firm TMSOFT is responsible for several dozen iOS and Mac apps, Lodsys has curiously agreed to dismiss its case against him in exchange for an end to the dispute and a mutual charitable donation from the two sides (via @DotComCTO).
Quote:
The dismissal is with prejudice which means they can never sue my company again for infringing its patents. I did not have to pay any money to Lodsys or sign a license agreement. I also did not sign a confidentially agreement so I'm free to talk about this matter.

So what did I have to agree to?

1. Never to sue Lodsys over its patents (I otherwise would have the right to ask a court to rule their patents invalid if I wanted)

2. Dismiss all motions with prejudice (we had filed a motion to dismiss that also sought to recover my attorneys fees, costs and expenses)

3. Make a donation to a mutually agreeable charity
Moore notes that the only reason he was able to fight Lodsys in court was that he had pro bono assistance from the Public Patent Foundation, with attorneys there estimating that their time spent on the case could normally have been billed at roughly $190,000 even before it headed to trial. He also highlights the ease with which Lodsys is able to file patent lawsuits against small developers and his continuing efforts at supporting patent reform.

It remains unclear whether Lodsys' move to dismiss the case against Moore and TMSOFT is part of a strategy shift for the firm or if it simply realized that it was not worth pursuing a protracted fight against a small developer receiving free legal representation. We have yet to hear of any similar settlements, although many developers have understandably been reluctant to share details on their own experiences with Lodsys.

Article Link: Lodsys Agrees to Dismiss Patent Case Against Small Developer for a Charitable Donation
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Old Aug 8, 2013, 10:41 AM   #2
nepalisherpa
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Idiots!!! They just want to load up!
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Old Aug 8, 2013, 10:43 AM   #3
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Ah, yes, the Lodsys Charity for Starving Patent Lawyers Red Cross.

Last edited by AngerDanger; Aug 8, 2013 at 01:43 PM. Reason: [strike]
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Old Aug 8, 2013, 10:45 AM   #4
Popeye206
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Patent trolls!

Can't stand these types of companies! Good to hear that they may be backing down.
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Old Aug 8, 2013, 10:46 AM   #5
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That logo looks awful.
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Old Aug 8, 2013, 10:47 AM   #6
newdeal
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they knew if they went to court and lost then they would lose their other 200 licencees because the precedent would be set that their patents were invalid. They only prey on companies that they know won't fight back because then they can keep doing it over and over. As soon as a judge rules against them for one case the party is over
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Old Aug 8, 2013, 10:49 AM   #7
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Originally Posted by SgtPepper12 View Post
That logo looks awful.
Yeah, I find it hard to take serious a company whose logo looks like it was designed by some 7 year old on Microsoft Publisher, circa 1995.

Hopefully an actual designer didn't vomit that thing out. It looks more like something that would come from some company exec who fancied himself a bit of a Renaissance man who could handle the company's graphic arts needs, while simultaneously raping and pillaging the spirit of the patent system.
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Old Aug 8, 2013, 10:49 AM   #8
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That logo looks awful.
made in MS word???
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Old Aug 8, 2013, 10:50 AM   #9
bedifferent
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When should we expect "MacRumors" to became "PatentRumors" (or "PatentWars", I like that one)?
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Old Aug 8, 2013, 10:51 AM   #10
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It's still extortion
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Old Aug 8, 2013, 10:51 AM   #11
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Don't see why there's a notion to funding towards charity. Why? Doesn't make sense or have anything to do with the case.
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Old Aug 8, 2013, 10:51 AM   #12
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made in MS word???
MS Paint
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Old Aug 8, 2013, 10:52 AM   #13
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Originally Posted by bedifferent View Post
When should we expect "MacRumors" to became "PatentRumors" (or "PatentWars", I like that one)?
It is available...
http://www.godaddy.com/domains/searc...isc=cjcRMN35nc
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Old Aug 8, 2013, 10:53 AM   #14
bedifferent
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Ok, whose down for this? I'm grabbing it, my spidey-senses are telling me, that may be gold someday

(just don't sue me for any rights)
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Old Aug 8, 2013, 11:01 AM   #15
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These guys are the exact reason everyone hates patent trolls.
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Old Aug 8, 2013, 11:01 AM   #16
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Where's Dexter when you need him?
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Old Aug 8, 2013, 11:02 AM   #17
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I'm sure I'm missing something but to me it reads like TMSOFT received pro bono funding to fight Lodsys in court. And instead of seeing it through and putting an end to it for all the developers being threatened and bullied by Lodsys they took the easy way out. Only really benefiting themselves. Leaving all the other dev's once again as fair game?
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Old Aug 8, 2013, 11:03 AM   #18
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made in MS word???
Only Comic Sans can make it worse....



<shudders>

Quote:
Originally Posted by bedifferent View Post
MS Paint
My secret... It's out....
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Old Aug 8, 2013, 11:05 AM   #19
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Where's Dexter when you need him?
Working on his new app, "Slice of Life"
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Old Aug 8, 2013, 11:08 AM   #20
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Thanks for the mention in the article. Didn't expect that. I just tweeted MacRumors to see if they'd look into it and find out if Lodsys finally dropped their claims against small developers.

As for the contribution to charity, I'm not at all a lawyer, but I suspect if the developer didn't accept that condition, they'd be deemed to be unreasonable. Then Lodsys might have tried to continue their case, saying, "Your Honor. We tried to create a reasonable settlement, but the defendant isn't acting in good faith." Or something along those lines.

Regardless, I'm glad to see this happen and hope this extends to the whole host of other developers that have been affected by this.



--DotComCTO
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Old Aug 8, 2013, 11:35 AM   #21
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$190,000 even before it headed to trial

There is definitely something wrong in the VS
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Old Aug 8, 2013, 11:39 AM   #22
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Quote:
Originally Posted by DotComCTO View Post
Thanks for the mention in the article. Didn't expect that. I just tweeted MacRumors to see if they'd look into it and find out if Lodsys finally dropped their claims against small developers.

As for the contribution to charity, I'm not at all a lawyer, but I suspect if the developer didn't accept that condition, they'd be deemed to be unreasonable. Then Lodsys might have tried to continue their case, saying, "Your Honor. We tried to create a reasonable settlement, but the defendant isn't acting in good faith." Or something along those lines.

Regardless, I'm glad to see this happen and hope this extends to the whole host of other developers that have been affected by this.



--DotComCTO
Sorry, but I think you should have "taken it to the mattresses." These guys wouldn't have blinked if they didn't fear going to court. It's time for someone to take these guys down. Seemed like you had a good chance.

----------

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$190,000 even before it headed to trial

There is definitely something wrong in the VS
Cool your heels. I work for a US law firm, and we have an office in Brussels. Those lawyers are raking it in, also.

I won't even go into the ridiculous employment rules for Belgium...
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Old Aug 8, 2013, 11:52 AM   #23
trauncher
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Anyone notice the "Logo Creator 5" stock logo they used?

Apparently they have no imagination either. The logo they used is from a sample copied straight out of "Logo Creator 5" from laughingbird software.
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Old Aug 8, 2013, 11:54 AM   #24
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He (or his benefactor) could transfer his lawsuit IP to other defendants to fight the validity of the patents themselves.
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Old Aug 8, 2013, 11:54 AM   #25
trauncher
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Originally Posted by ChazUK View Post
Only Comic Sans can make it worse....

Image

<shudders>



My secret... It's out....
It's a sample logo from Logo creator 5 from Laughing bird software
They didn't even bother to change the font. LAME... it Wallows in Lameness!

http://www.laughingbirdsoftware.com/...-logo-creator/
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