Ever hear of U.S. Patent number 7,222,078? We doubt it. But if you're a small-time iOS developer, you might soon become much more familiar with this patent than you ever wanted to be.
That's because news is surfacing to indicate that Lodsys—a company that just appears to be a patent licensing operation—has been threatening to pursue action against iOS developers that have allegedly infringed on the company's patents. Specifically, good ol' patent 7,222,078: "Methods and systems for gathering information from units of a commodity across a network."
What does that mean in English? The patent allegedly relates to in-application purchases, and appears to cover the action whereby one uses an "upgrade" button to jump from a lite or free version of an application to a paid-for version.
"Our app, Mix & Mash, has the common model of a limited free, lite, version and a full version that contains all the features. We were told that the button that users click on to upgrade the app, or rather link to the full version on the app store was in breach of US patent no 7222078," said Computer LogicX's Rob Gloess. "We couldn't believe it, the upgrade button!?!"
According to developers who have already received FedEx-delivered stacks of paper (up to 100 pages) from Lodsys threatening a lawsuit, they allegedly have 21 days to work out some kind of licensing agreement with the company. After that, it's a trip to the courts.
However, here's the kicker: Presuming Lodsys' arguments hold true, developers are forbidden from entering in a contract with the company without Apple's explicit permission. To do so, according to the iOS developer agreement, could in some way "[affect] Apple's rights or [bind] Apple in any way."
All developers can really do is forward the accompanying material to Apple and let the company sort it out, which makes one question why Lodsys is going after developers instead than Apple itself. The latter, after all, made the underlying operating system and attached payment system for in-app upgrades—developers are merely using intellectual property that Apple, itself, created.
"So what it comes down to is that Thomson, McCarron, and other iOS developers are being threatened by Lodsys for using Apple intellectual property under license from Apple, in such a fashion that they cannot even settle without violating the iOS Developer Program License Agreement," writes TidBITS' Adam C. Engst.
"They can't legally agree that Apple's In App Purchase API violates Lodsys's patents, and no matter what, there's no way Apple would give permission for such a settlement due to the chilling effect it would have on iOS development in general," he adds.
Neither Apple nor Lodsys have offered comment on the situation.
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