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When it comes time to litigate, Lodsys is nothing more than a coward
The mere mention of Lodsys can often evoke a visceral response of disgust, not too surprising given that Lodsys in the eyes of many epitomizes the worst type of patent troll. Lodsys, if you recall, is a patent holding company that began targeting independent iOS developers back in May of 2011. One of the four patents Lodsys has been asserting covers "methods and systems for gathering information from units of a commodity across a network" and Lodsys has been using it to go after any company that makes use of in-app purchasing. While Lodsys has since gone after larger development companies, Lodsys' original strategy involved going after small and independent iOS developers without the requisite resources to mount a viable legal defense. As a result, many view Lodsys as nothing more than a shakedown artist insofar as it demands licensing agreements from developers under the threat of litigation. But when push comes to shove, Lodsys doesn't want its patent infringement suits to go to trial. In truth, when a company has the resources to actually fight back, Lodsys can't run away with its tail between its legs fast enough. Lodsys talks a big game, but its reluctance to go to trial underscores the weakness of its patent portfolio and its fear of having a case decided on the merits. As a recent example, one of the companies Lodsys went after was Kaspersky Lab, an internet security firm based out of Moscow. Ars Technica reports: It's a classic troll situation. The '078 patent is a continuation of a continuation application, a way of essentially gaming the system to keep shifting claims while maintaining an earlier priority date. The patent shows a fax machine that asks a user for feedback about how effectively it operates, ranked on a scale of 1-5. The accused Kaspersky product? The company's "renew license" button, present in many of its software programs, which is nothing more than a hyperlink to an online store. By clicking that button, a customer was giving its "perception" of the product, Lodsys argued, thus treading on the claims of its patent. Only thing is, Kaspersky had no intention of settling with a patent troll like Lodsys and was willing to go to trial on the matter. So what happened with a trial set to begin on October 7? Lodsys blinked, dismissing its case against Kaspersky with prejudice. "Faced with the prospect of having to actually prove its case," the Electronic Frontier Foundation writes, "Lodsys surrendered. Lodsys would rather get nothing than see a binding decision on the merits of its claims." Eugene Kaspersky recently penned an enjoyable blog post detailing his company's victory against Lodsys. It reads in part: I won't bore you with the details of the proceedings. I will say that this isn't the first time we've done battle with trolls, so we're up to speed on how to deal with this vermin. The main thing is to have a strategy and tactics, to immediately supply all information requested (including source code!), to quickly respond to complaints, and to demonstrate to the court both openness and a readiness to solve the matter. And of course to also exude calmness, confidence, and firmness in one's position. Trolls, on the other hand, do everything to make things difficult; for example, we had to analyze more than 2,000 documents that formed the basis of the troll's case in a very short period of time. Based on our analysis we had to come up with crushing counter-arguments. And it was those counter-arguments that actually did finally crush our opponent, seeing Lodsys not even having the courage to show up in court! We maintained that we did not infringe any of Lodsys's patents and that their claims were invalid. The takeaway, Kaspersky writes, is that patent trolls can be defeated. Indeed, this isn't the first we've heard of Lodsys abandoning its litigation strategy in the face of a determined defendant willing to fight back. While true, and perhaps encouraging, the unfortunate reality is that many defendants, especially independent developers, simply don't have the time or resources to engage in protracted legal battles. Nonetheless, it's always refreshing to see a company take on a patent troll like Lodsys and emerge victorious.
Judge tosses out Apple's motion regarding Lodsys
Apple licensed US Patent #772,078 from original owner Intellectual Ventures to allow for in-app purchases of iOS apps. The patent, now owned by Lodsys, covers "Methods and systems for gathering information from units of a commodity across a network." Lodsys started suing iOS developers for patent infringement and Apple filed a motion to intervene in patent infringement lawsuits in 2011. Patent trolls -- also known as Patent Assertion Entities ("PAEs") -- are "firms with a business model based primarily on purchasing patents and then attempting to generate revenue by asserting the intellectual property against persons who are already practicing the patented technologies," according to the FTC. According to Joe Mullin from Ars Technica, "Lodsys became one of the most-scorned patent holders in 2011, by making seemingly small cash demands (just 0.575 percent of your revenue, please!) against small app makers, who it said were infringing its patents that cover in-app purchasing and upgrades." Ars Technica further states that, "the East Texas judge [US District Judge Rodney Gilstrap] overseeing Lodsys' systematic patent attack on app developers has refused to even consider Apple's motion." This means that Lodsys is now free to "threaten developers for months, and perhaps even years, to come," according to Mullin. An amicus brief, which is loosely an offer to assist in understanding an issue being handled by a court by parties with a strong interest in the issue (but not part of the court action) was filed by the App Developers Alliance and the Electronic Frontier Foundation. The brief states: "Lodsys's pattern of sending out demand letters, suing a seemingly random sampling of app developers and then settling with those app developers, promises that those developers' claims of a right to use the technology in question will never be heard. The resulting uncertainty leaves developers in limbo. In fact, there have been reports that app developers are indeed pulling apps out of the US markets entirely. Charles Arthur, App Developers Withdraw from US as Patent Fears Reach 'Tipping Point', The Guardian (July 15, 2011)." Mullin recounts some of the pending suits and companies involved, and provides more detail on how those companies are handling the cases. "Apple's argument that the Lodsys patents are already paid for could have been a clean and effective way to shut down much of the Lodsys patent campaign." It looks like that isn't going to happen anytime soon. Related Stories FTC publishes a long list of questions it wants to ask "patent trolls", Ars Technica, 9/27/13. FTC Seeks to Examine Patent Assertion Entities and Their Impact on Innovation, Competition, FTC, 9/27/13. Lodsys offers to settle patent dispute with fortunate developer, TUAW, 8/8/13. Apple allowed to intervene in Lodsys patent case, TUAW, 4/13/12. Lodsys now going after apps with More Apps buttons, TUAW, 7/13/11. Apple files motion to intervene in Lodsys suit, TUAW, 6/10/11.
Lodsys offers to settle patent dispute with fortunate developer
In May 2011, a largely unknown patent-holding firm named Lodsys began threatening iOS developers with lawsuits if they didn't agree to license Lodsys' patent portfolio, which allegedly covered technology encompassing in-app purchases. The case made headlines not only because Lodsys targeted many small developers who lacked the resources to adequately defend themselves, but also because of the patented technology involved. The ability for developers to implement in-app purchases comes from Apple and is an integral part of the iOS ecosystem. In other words, if Lodsys' claims were valid, they could theoretically shake down an endless number of iOS developers. The warning letters sent out by Lodsys indicated that the company wanted 0.575 percent of all revenue earned during the period a developer made use of in-app purchasing. Shortly thereafter, Apple filed a motion to intervene in the Lodsys proceedings against iOS developers. Apple argued that all iOS developers are de facto licensees to Lodsys' patents due to Apple's own licensing agreement with Lodsys. Indeed, it's worth noting that companies like Apple, Google and Microsoft all had licensing deals with Lodsys that were in place prior to Lodsys' patent suit rampage. In a letter sent to Lodsys CEO Mark Small, Apple explained: First, Apple is licensed to all four of the patents in the Lodsys portfolio. As Lodsys itself advertises on its website, "Apple is licensed for its nameplate products and services." ... Under its license, Apple is entitled to offer these licensed products and services to its customers and business partners, who, in turn, have the right to use them. Lodsys, however, refused to back down and it wasn't long before the patent holding company began targeting Android developers as well. By the end of May 2012, Lodsys had filed lawsuits against seven smaller-scale iOS developers. By the end of July, Lodsys upped the ante by going after big-name developers like Rovio and EA. Soon thereafter, suits against other big development companies like Gameloft were filed. Over the past few months, however, we haven't heard much of anything about Lodsys-related lawsuits or proceedings. Earlier today, however, developer Todd Moore wrote that he received an unexpected letter from Lodsys wherein they offered to drop their suit against him. 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? 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) Dismiss all motions with prejudice (we had filed a motion to dismiss that also sought to recover my attorneys fees, costs and expenses) Make a donation to a mutually agreeable charity Well, that's certainly great news given that no one likes to see patent trolls try and scam a quick payday from hardworking developers, especially given the costs typically associated with legal battles. To that end, Moore writes that he was being defended on a pro bono basis by attorneys who together spent upwards of 280 hours on the case. At an hourly rate that would otherwise vary between US$500 and $750 an hour, it's easy to see why Lodsys initially set its sights on smaller developers. Moore writes that if he hadn't been graced with pro bono representation, he would have had to pay $190,000 in legal fees. MacRumors proffers an interesting theory: 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. So it remains to be seen if Moore is the exception or if other iOS developers will receive similar letters from Lodsys. We can only hope that it's the latter.
Patent troll Lodsys sues Gameloft, Disney and more for using in-app purchases
A company named Lodsys has filed suit against a number of mobile game developers, including Gameloft, Gamevil, and Disney, claiming that they're infringing on patents describing the technology behind in-app purchases. Lodsys is well known for its patent battles, previously filing suits against a number of smaller iOS developers, which forced Apple to get involved to say that it had already licensed Lodsys' patents and any other claims were superfluous. That case is scheduled to go to trial later this year.The new lawsuits all name one specific title from each company: Gameloft is targeted for the in-app purchases in Real Soccer 2012, and Disney's suit mentions Where's My Water? [pictured]. The Electronic Frontier Foundation has also posted about the lawsuits, calling Lodsys a "patent troll" and asking for legal help to fight the company.
Lodsys: 150 iOS developers give in to patent demands
Lodsys filed what many are calling a "patent troll" lawsuit against a number of smaller iOS developers last year, claiming that while Apple may have licensed its in-app purchase technology patents for iOS, individual developers have not, and should be held accountable for using it. Despite the fact that this seems patently absurd (pun intended), Lodsys claims that over 150 developers have licensed the technology for themselves, with the majority of them actually doing so "outside of the litigation process." The exact charges of licensing the tech aren't known, but it's rumored to be around 2.5 percent of whatever revenues are earned with in-app purchases. In other words, over 150 of the targeted developers have decided to pay licensing fees to Lodsys, rather than face the threats of legal action or further fines. Lodsys originally offered $1,000 to any developers it said had been wrongly targeted by the lawsuit, but of course that would be after costly court action due to the legal challenges. It's possible that these developers simply decided it wasn't worth the trouble fighting for their cause. Apple promised to assist these developers in court, and tried to make the case that its own licensing payment covers third-party developers. But Lodsys says separately that the issue is still "unresolved and clearly contested." Lodsys seems dedicated to going after smaller developers who lack the huge legal or monetary resources that Apple itself can use, and thus can be more easily threatened into paying out licensing fees rather than face an expensive court battle. [via GigaOm]
Oracle sues Lodsys to squash its patents, deals in ironic reversals of fortune
Lodsys has been facing an increasing backlash ever since it began suing left and right to scrape money from developers over patents, including countering lawsuits from some heavy hitters. Its stiffest opposition might have just lined up in the form of Oracle, however. The database behemoth is hoping to render four of Lodsys' patents invalid and prevent it from threatening further lawsuits against companies that use Oracle's technology, such as current target Walgreens. The lawsuits are focused more on web chats than on the in-app purchasing that has put more than a few mobile app developers in jeopardy, although it might help EA or Rovio at ease knowing Lodsys might be defanged. Oracle certainly isn't mincing any words in its accusations: it out-and-out accuses Lodsys of being a patent troll that profits from technology it didn't invent and will never use. Strong rhetoric against patent lawsuits won't guarantee Oracle a victory in court, but it certainly creates a minor degree of irony for a company that unsuccessfully sued Google over patents inherited through an acquisition.
Daily Update for April 13, 2012
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Apple allowed to intervene in Lodsys patent case
Last year, patent holder Lodsys filed lawsuits against iOS developers including James Thomson, Patrick McCarron, IconFactory, Combay, Rovio and more. Apple stepped in and filed a motion to intervene on June 9, 2011. The motion was finally granted this week, says a report in FOSS Patents. Lodsys asserts that these developers and others infringe on U.S. Patent No. 7,222,078 which describes "methods and systems for gathering information from units of a commodity across a network." Apple argues that developers are protected from lawsuits because Apple already pays Lodsys a licensing fee which covers third-party developers in the iOS App Store. Lodsys vehemently disagrees and claims each developer must negotiate an agreement on an individual basis.
iOS developers still battling Lodsys
We haven't heard much from the legal battles between patent troll Lodsys and the developer community, but unfortunately that doesn't mean Lodsys has shriveled up and vanished. Ars Technica has interviewed iOS developer Mike Lee, who founded the Appsterdam Legal Defense Team to fight Lodsys's shaking down of developers, and it looks like the battle will rage on well into 2012. Lodsys has gained a well-deserved reputation for patent trolling this year. Despite Apple licensing the company's in-app purchasing patents and allowing third-party developers to use Apple's own in-app purchasing APIs in their apps, Lodsys has decided to go after several developers using those APIs in an attempt to shake them down for licensing fees, too. Smaller third-party developers lack the legal resources of a huge corporation like Apple, so Lodsys probably counted on developers simply rolling over and handing over their lunch money without a fight. Mike Lee wasn't prepared to do that, and he's encouraged developers to band together to fight Lodsys. "There is nothing you can do to prevent yourself from being targeted, regardless of platform," Lee told Ars Technica, "and regardless of how careful you are, because this is not patent infringement, it is simple extortion, and it is worldwide." Apple has made some initial steps to intervene in the dispute between Lodsys and iOS developers, but it's been several months since we've heard anything from that front. Apple has insisted that since it's already paid the licensing fees for Lodsys's intellectual property and developers are simply using its own in-app purchasing APIs, developers shouldn't have to pay licensing fees as well. It seems like common sense, but Lodsys disagrees; if awarded damages in its suit against developers, the implications for the App Store and the software development landscape at large could be quite dire. Appsterdam hasn't been sitting on its hands this whole time; the team has been actively researching how best to fight Lodsys since August, and it will continue on into next year. For the sake of not just Apple's developer community, but all software developers on all platforms, I hope they're successful.
Atari, EA and others push court to accept Apple's request against Lodsys
Lodsys filed suit earlier this year against a number of third-party App Store developers, claiming that it owned patents covering a number of functions used by Apple's app marketplace, and that by using that store, these third-party devs were in violation of these patents. Apple, however, came out swinging a little while back, throwing a blistering letter down in the lawsuit, essentially calling Lodsys' claims nonsense. And now Atari, EA, and a number of other iOS developers named in the lawsuit have thrown their support behind Apple's argument, officially filing motions to support Apple's position outlined in that letter. The motions also ask that Apple be allowed into the lawsuit as an intervenor and not just a third-party, so that it can properly review and make an actual response to everything filed by Lodsys. Lodsys has been accused of making an end-run around Apple to the smaller developers in this case, and trying to go after companies that might not be able to afford a fight, but passing this motion would pit Lodsys straight up against Apple and all of its resources rather than just the developers themselves. One notable exception from the companies already fighting the case: Google. Lodsys reportedly also targeted Android developers, but so far Google hasn't stepped up in the same way that Apple has. We'll have to see if the folks in Mountain View are willing to join the fight as well.
Apple insists it has right to intervene in Lodsys patent suit
Apple has filed a response brief to Lodsys, who responded to Apple's intervention in the patent suit two weeks ago. Around the same time, the suit was expanded to include big-name iOS developers such as Rovio, EA, Atari, Take-Two Interactive and Square Enix. Lodsys has filed an opposition brief trying to convince the courts that Apple has no basis to intervene in Lodsys's patent suit against third-party iOS developers. Florian Mueller of FOSS Patents says that Apple still wants a court hearing on the intervention motion. He's uploaded the brief to Scribd and provided a brief summary of the arguments Apple provided to tear apart Lodsys's claims. At the heart of the matter is Apple's assertion that if it doesn't intervene, it could lead to a boycott of some of Apple's core products by app developers. Apple also asserts that despite some of the recent big-name additions to the suit being able to defend themselves, "none of the defendants have the technical information, expertise, and knowledge regarding how Apple's technology works or the negotiation and intent of the License itself to fully articulate and develop Apple's exhaustion defense. [...] This distinction alone is sufficient."
Appsterdam founder rallies developers for legal protection
Mac and iOS developer Mike Lee has announced the Appsterdam Legal Defense Team, meant to defend independent developers against the patent claims recently made by the likes of Lodsys. Mike tells his fellow developers that "rally time starts now," while outlining the defense team's immediate plan of action. Texas-based technology attorney Michael McCoy (he's also licensed in California) has been meeting with Lee in Amsterdam to develop a concrete plan of action. McCoy will head the defense fund and, Mike states, establish the Appsterdam Legal Defense Fund. Lodsys began targeting developers earlier this year by suing them over a patent relating to in-app purchases in iOS. While Apple pays a licensing fee for the technology addressed in the claim, Lodsys insists that individual developers whose apps allow for in-app purchases ought to do the same. Shortly thereafter, Apple announced that it was "actively investigating" the claims and issued a formal response several days later. Mike Lee, formerly of Apple and Tapulous, recently moved to Amsterdam to create an application development community. Already there is a weekly lunchtime lecture series in place. Good luck to Mike, The Appsterdam Legal Defense team and all independent developers caught up in this sticky mess.
Apple updates its response to Lodsys suit, but doesn't move to invalidate patents
Apple has updated its proposed answer to the Lodsys suit against third-party developers. Lodsys has recently expanded its patent suit to include big-name iOS developers like Rovio (of Angry Birds), EA, Atari, Take-Two Interactive and Square-Enix, according to The Mac Observer. Florian Mueller of FOSS Patents points out that Apple's amendments to its proposed answer are very minor, however, and a readthrough of the amended document bears this out. Critically, Apple's argument remains that its licensing of Lodsys's patents should be sufficient to allow third-party developers on its platform the right to use in-app purchasing tools without having to license them independently. Mueller is not fully convinced this tactic will succeed, however, and believes that Apple should instead challenge the validity of the patents themselves. Some third-party developers have already filed for invalidation of the Lodsys patents, but Apple's motion to intervene hasn't gone nearly that far yet. Lodsys obviously believes it has a strong case if it's graduated from suing smaller developers to going after industry titans like EA and Square-Enix. Mueller seems to be asserting that Apple's response to the case thus far has been lackluster, and it's hard to argue with him; considering what's at stake, it is indeed disappointing that Apple has yet to unleash the firepower of its fully-armed and operational battle lawyers upon Lodsys.
Lodsys adds Rovio, Atari, EA and others to patent suit, makes birds even angrier
If you thought Lodsys was done making a spectacle of itself and dragging app developers to court, you were sorely mistaken. The king of the patent trolls has amended its original complaint against mobile devs, removing one company, but adding five new ones -- all of them big names. Rovio, Electronic Arts, Square Enix, Atari, and Take-Two Interactive have been added to the list of defendants in the suit filed back in May. Vietnamese company Wulven Games has been dropped from the complaint, but Lodsys has more than made up for it by directly targeting possibly the largest mobile title out there -- Angry Birds. You can find the completely amended filing at the source link and, if you're in the mood for a bit of a refresher, check out the more coverage link.
Lodsys now going after apps with More Apps buttons
Not happy with merely going after app developers who offer in-app purchase in their iOS apps, Lodsys is now sending out infringement letters to developers who cross-promote apps. Developer EpicForce received an infringement notice from Lodsys over its iFighter 1945 game, which offers users the option of purchasing another EpicForce game, Super Laser: The Alien Fighter, from within the app. Many App Store developers engage in this kind of cross-promotion within their apps, including big names like PopCap (recently acquired by even bigger name EA). Lodsys is now asserting that its patent on in-app purchases applies to these cross-promotions as well, which could indicate that this "patent litigation factory" is looking at expanding the scope of its lawsuits against app developers. EpicForce emailed Lodsys to attempt to dissuade the company from its lawsuit, but Lodsys is adamant that app cross-promotion falls under the rubric of its patent. Lodsys's full letter to EpicForce is printed below. Apple has recently made motions to intervene in the dispute, and for the sake of the App Store's livelihood, let's hope the intervention is successful. Lodsys may assert that it's merely trying to "protect its rights," but what it's really doing is threatening the entire development environment for iOS devices.
Lodsys requests 2 months to respond to Apple (Updated)
A few weeks ago, Apple filed a motion to intervene in Lodsys' controversial lawsuit against a handful of iOS app developers. Lodsys was required to respond to Apple's request by June 27, 2011, but the company has asked for a two month extension. If a judge approves this extension, Lodsys will have until August 27 to respond to Apple's intervention request. The patent holding company affirms this extension is not a stall tactic and claims Apple agrees to this delay. If true, this motion may be approved by the judge and developers may have to sweat it out another two months. Lodsys will also be free to broaden its lawsuit by sending out letters to additional developers. This legal maneuver could put developers in a difficult position. Apple may be stalled for the next two months, while Lodsys decides what to do. Of course, Apple and Google could use this time to work out an agreement with Lodsys. In the meantime, though, Lodsys could continue to breathe down the necks of the development community. Even the most steel-nerved developers may crack under this pressure and sign a licensing agreement just to get Lodsys out of the way. Update: Lodsys refiled its request and asked for an extension of one month which the judge is likely to grant. The initial two-month extension was done by mistake. [Via The Loop]
New York Times, OpinionLab sue Lodsys seeking declaratory judgement
Indie developers turned to the Web hours after receiving warning letters from Lodsys last month, but larger devs took a more traditional approach, leaving the communication and finger-pointing to lawyers instead. Two such companies, the New York Times and OpinionLabs, came to light after filing suit against the patent troll yesterday, seeking declaratory judgements to invalidate Lodsys's patents. A nine-page complaint filed by NYT lists four Lodsys patents, including 7,222,078, which had previously been used to target smaller developers. NYT's ad click-through system and OpinionLabs' surveys were both also targeted, and if the suits are successful, Lodsys would be responsible for all legal expenses, and wouldn't be allowed to collect on its patents in the future. We spoke with Julie Samuels of the EFF, who explained that filing for a declaratory judgment could theoretically enable NYT and OpinionLabs to have trials held in California and Illinois, where the declaratory judgments were filed, instead of the Eastern District of Texas -- the notoriously plaintiff-friendly court where Lodsys filed its suit against seven devs on May 31st. Other devs who received letters but have not yet been sued can also do the same. The suits brought by NYT and OpinionLabs formally call the validity of Lodsys's patents into question, but unfortunately don't change the game for devs Lodsys already sued, who would still be responsible for licensing fees and other damages if the court determines the patents to be valid (and their apps to be infringing).
Apple files motion to intervene in Lodsys patent lawsuit
Apple's already made its position on the whole Lodsys situation pretty clear, and it's now taken things one step further after the patent holder hit iOS developers with a lawsuit at the end of last month. As noted by Florian Mueller of FOSS Patents, Apple has filed a motion to intervene in the case, and he says Apple is "fairly likely" to be admitted as an intervener based on precedent. In the case that happens, Apple has also concurrently filed its answer to the complaint and its counterclaim, which unsurprisingly line up with its earlier position on the matter: that Apple has already licensed the patents in question on the developers' behalf, and that they are "entitled to use this technology free from any infringement claims by Lodsys." Hit the source link below for the complete filing, along with FOSS Patents' analysis of it.
Apple files motion to intervene in Lodsys suit
Apple has filed a motion to intervene for developers being sued by Lodsys. The motion was filed in the Eastern District of Texas and notes that the developers are: "are individuals or small entities with far fewer resources than Apple and [...] lack the technical information, ability, and incentive to adequately protect Apple's rights under its license agreement." Precedence suggests Apple will be allowed to intervene in this case. The company will likely argue that Lodsys' claims are covered by an existing licensing agreement Apple has with the firm. If Apple is successful, Lodsys would not be allowed to collect twice on the same licensed patent. It is not known whether Apple will pay for the legal costs of these developers, but it is good news that Apple is stepping in legally in this case.
Lodsys patents now face invalidation attack
The latest salvo in the ongoing Lodsys patent dispute against third-party App Store developers has just been fired. According to Florian Mueller, Michigan-based company ForeSee Results "has filed a declaratory judgment suit against Lodsys's four patents with the US District Court for the Northern District of Illinois." Mueller describes a declaratory judgment as "a pre-emptive strike by those who consider themselves or their customers/partners likely targets of an infringement suit." ForeSee counts Adidas and Best Buy among its customers, and by pre-emptively filing suit in Illinois, it hopes to protect itself against a Lodsys suit in the patent-holder-friendly Eastern District of Texas. Intriguingly, Mueller notes that ForeSee picked the Northern District of Illinois as the venue because that's where Lodsys' CEO (and sole employee) lives; this essentially means that Lodsys is only "formally" headquartered in East Texas, presumably because that judicial district has a history of decisively siding with patent holders. If true, by choosing to headquarter its company in the Eastern District of Texas despite the company's business operations actually taking place several states away, it's just one more piece of evidence that Lodsys as a company exists solely to engage in lawsuits based on intellectual property claims. Put more simply: it's Patent Trolling, Inc. Mueller surmises that if ForeSee's declaratory judgment against Lodsys is successful, it could theoretically help the seven developers that Lodsys has sued thus far argue their case. However, the real problem is that many of these small developers may not be able to afford to defend themselves in such a suit, with their only option being to pay license fees to Lodsys whether its patents are valid or not. Lodsys has yet to comment on the matter, but given its past history of blog posts on its site, the company will no doubt take great pains to defend its stance -- one which we maintain is indefensible and amounts to gaming the US patent system in an attempt to extort money from third-party iOS developers incapable of defending themselves against its claims. Apple has yet to make any additional response beyond the response it made over two weeks ago, before Lodsys filed suit. If Apple's measured reactions to recent crises is anything to go by, the company is no doubt carefully weighing its options before making its response in the matter.
