Lodsys, a company that licenses patents without having any other business (otherwise known as a non-practising entity), has targeted Apple’s iOS and Google’s Android developers, claiming patent infringement. Most recently it has expanded its targets to also include various retailers that have used the technology covered by the patents.
Lodsys has pursued app developers for a licensing fee on apps that made use of the in-app purchase (IAP) feature. Lodsys alleges that the use of this feature without paying the licensing fee infringes on their patent.
Lodsys has chosen to exclude Apple in the lawsuit even though Apple has stated that it wants to step in and assist. Apple argues that the complaint adversely affects the value of Apple’s license and its business with its developers. As a result, Apple recently filed a motion with the Eastern District of Texas to intervene as a defendant in the lawsuit. Google has not announced whether it will also intervene to protect its developers.
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