Lodsys Sending Out Patent Infringement Notices

MARSHALL, Texas — A number of online adult companies have received patent infringement notices from a company called Lodsys, which owns a collection of patents that purport to provide interactive online advertising, subscription models and data collection, among other systems.

The letters to the adult companies, which were delivered by FedEx, say that they have been infringing on U.S. Patent No. 7,222,078, which includes "methods and systems for gathering information from units of a commodity across a network."

According to the patent's abstract, "In an exemplary system, information is received at a central location from different units of a commodity. The information is generated from two-way local interactions between users of the different units of the commodity and a user interface in the different units of the commodity. The interactions elicit from respective users their perceptions of the commodity."

The patent, filed in December 2003, was invented by Daniel Abelow who, according to his website, has licensed patented inventions to Apple, Google, Microsoft, Verizon, Nokia and 200 other companies.

One of those companies, Apple, publicly blasted Lodsys last month over its U.S. Patent No. 7,222,078 claims.

Apple says iOS developers received the same FedEx packages that included legal threats if they didn’t pay Lodsys to license a patent covering in-app purchasing and other app-related matters.  (Macworld published Apple's response directed at Lodsys CEO Mark Small here.)

Apple asked that "Lodsys immediately withdraw all notice letters sent to Apple App makers and cease its false assertions that the App Makers’ use of licensed Apple products and services in any way constitute infringement of any Lodsys patent."

But in a response to Apple's letter, Lodsys said it "carefully considered this issue and consulted several legal experts to consider Apple’s claims" and is adamant about the claims.

"We stand firm and restate our previous position that it is the third-party developers that are responsible for the infringement of Lodsys’ patents and they are responsible for securing the rights for their applications," Lodsys replied in a blog. "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' CEO, Small, told XBIZ he couldn't comment on the letters sent to online adult companies, saying, "We made a decision not to do press and apply our resources to licensing discussions, and we want to be consistent/fair in our policy."

Nonetheless, Lodsys has filed several other suits over patents unrelated to U.S. Patent No. 7,222,078.

Those suits have been filed at U.S. District Court in Marshall, Texas, by the same attorney suing 18 adult entertainment studios on behalf of InMotion Imagery Technologies, which claims it owns a patent relating to video-indexing processes that use thumbnail images during DVD navigation.

The federal court in Marshall is a popular one for patent lawsuits. Attorneys say that quick trials and plaintiff-friendly juries are the big draw there. So are the Texas-sized verdicts sometimes handed to winners.

Patent cases are heard faster in Marshall than in many other courts, forcing some defendants to buckle under the pressure of time when trying to sort out complex infringement cases.

And while only about five percent make it to trial in Marshall, patent holders win 78 percent of the time, compared with an average of 59 percent nationwide, according to LegalMetric, a company that tracks patent litigation.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Online Child Protection Hearing to Include Federal AV Bill

A House subcommittee will hold a hearing next week on a slate of bills aimed at protecting minors online, including the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law.

Industry Photographer, 'Payout' Founder Mike B Passes Away

Longtime industry photographer and publisher Michael Bartholomey, known widely as Mike B, passed away Saturday.

FSC Announces 2025 Board of Directors Election Nominees

The Free Speech Coalition (FSC) has announced the nominees for its 2025 Board of Directors election.

AdultHTML Launches Black Friday Web Design, Development Promo

AdultHTML has launched its annual Black Friday/Cyber Monday promo for web design and development, running through Dec. 5.

Canada Exempts Online Adult Content From 'CanCon' Quotas

The Canadian Radio-television and Telecommunications Commission (CRTC) has updated its broadcasting regulatory policies, exempting streaming adult content from “made in Canada” requirements that apply to other online material.

Creator Law Firm 'OnlyFirm' Launches

Entertainment attorney Alex Lonstein has officially launched OnlyFirm.com for creators.

German Court Puts Pornhub, YouPorn 'Network Ban' on Hold

The Administrative Court of Düsseldorf has temporarily blocked the State Media Authority of North Rhine-Westphalia (LfM) from forcing telecom providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

FSC: NC Law Invalidating Model Contracts Takes Effect December 1

The Free Speech Coalition (FSC) announced today that North Carolina's Prevent Exploitation of Women and Minors Act goes into effect on December 1.The announcement follows:

NYC Adult Businesses Seek SCOTUS Appeal in Zoning Case

Attorneys representing a group of New York City adult businesses are asking the U.S. Supreme Court to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

Show More