Friday, September 2, 2011

Lodsys says Apple's licensing of its patents doesn't cover developers

Lodsys, the patent firm famous for targeting both Apple and Google developers that utilised patents covering the in-app payment technologies used within the App Store and Android Market, has delivered a firm response to the Cupertino-based company, further reiterating that Apple?s license does not cover third-party developers, saying its ?claim of infallibility has no discernable basis in law or fact?.

On May 22, Apple finally issued a public response on the Lodsys lawsuits, which targeted more than six iOS developers and two Android developers, announcing that it had sent a letter to Lodsys asking for the company to withdraw letters sent to the developers demanding additional licensing fees.

Apple SVP and General Counsel Bruce Sewell said at the time:

?Apple is undisputedly licensed to these patents and the App Makers are protected by that license.

These licensed products and services enable Apple?s App Makers to communicate with end users through the use of Apple?s own licensed hardware,?software, APIs, memory, servers, and interfaces, including Apple?s?App Store. Because Apple is licensed under Lodsys? patents to offer such technology to its App Makers, the App Makers are entitled to use this technology free from any infringement claims by Lodsys.?

Lodsys has taken its time to reply to Apple?s public response but today published a new note on its blog stating that whilst Apple had ?appeared to give the Developer community what they wanted,? the company?s ?claim of infallibility has no discernable basis in law or fact?.

The patent firm continues to say that it has considered the issue with legal experts to consider Apple?s claims, adding that it will continue to stand firm on its previous position that third-party developers are responsible for the infringement on Lodsys patents:

The letter was very surprising as Apple and Lodsys were in confidential discussions and there was clearly disagreement on the interpretation of the license terms of Apple?s agreement.? Before, during and after these interactions, Lodsys has carefully considered this issue and consulted several legal experts to consider Apple?s claims. ?We stand firm and restate our previous position that it is the 3rd party Developers that are responsible for the infringement of Lodsys? patents and they are responsible for securing the rights for their applications. ?Developers relying on Apple?s letter do so to their own detriment and are strongly urged to review Apple?s own developer agreements to determine the true extent of Apple?s responsibilities to them.

Lodsys also writes that it sent a letter detailing its legal position on the licensing issues, prompting Apple to publish the letter because it refers to information that was obtained on an obligation of confidentiality, meaning they do not have the permission to do so:

In a private communication, simultaneous to this posting, Lodsys has sent a detailed legal position on the license interpretation issue, in writing to Apple that has been previously only verbally communicated. ?Apple has our permission to publish that letter, in its entirety, should developers wish to review our dispute and evaluate the risks with their own counsel.

While we have nothing to hide, we cannot unilaterally publish the letter because it refers to information that was obtained with an obligation of confidentiality to Apple and we do not have their permission to do so.

The most recent movement on the Lodsys case saw Google finally enter the fray, after the search giant filed?a?request?with the United States Patent and Trademark Office, calling for the organisation to reexamine two patents at the centre of legal disputes between Lodsys and application developers, to determine whether the claims within them were valid.

Patent expert Florian Mueller said at the time that whilst it was encouraging Google had moved to protect developers, both?Apple and Google have failed to provide developers with what they really need: ?blanket coverage concerning both litigation costs and, very importantly, potential damage awards?.

Mueller believes developers may still have to negotiate licensing terms with Lodsys whilst Apple and Google finalise their approaches, given the fact that they may fail in their actions.

Source: http://thenextweb.com/apple/2011/08/31/lodsys-says-apples-licenses-of-its-patents-dont-cover-developers/

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