Lodsys Socked With Another Declaratory Judgment Suit

PHOENIX — While Lodsys has filed four suits relative to alleged patent infringement over U.S. Patent No. 7,222,078, the holding company has been socked with six declaratory judgment suits that seek to invalidate its patent claims.

On Monday, Lodsys again was sued over its authority over the patent --?? ?this time by an automotive website called DriveTime.com that says that it isn't infringing on web chat functionality in relation to U.S. Patent No. 7,222,078 and wants it legally declared as such.

Scores of online adult companies have received letters from Lodsys over infringement of the same patent, which is described as using "methods and systems for gathering information from units of a commodity across a network."

The letters, online adult execs say, are delivered by FedEx and read, "[W]e are interested in reaching a negotiated nonlitigation licensing arrangement with you for all of your uses of the Lodsys patents under your brand names and would like to discuss this matter with you within 21 days of your receipt of this letter."

So far, Lodsys has been slapped with six declaratory suits seeking to invalidate U.S. Patent No. 7,222,078 from The New York Times Co., market research firms OpinionLab and Foresee Results Inc., antivirus software maker ESET, real-time intelligent engagement platform LivePerson and now DriveTime.

DriveTime lawyers said in the suit filed at U.S. District Court in Phoenix that Lodsys has a well-known reputation as a “patent troll.”

"These companies never actually manufacture anything covered by the patents they acquire – they generate revenue from litigation and the threat of litigation alone. This practice is becoming more and more common, much to the concern of the technological and legal communities. Lodsys is one of the latest to attempt to profit from this disturbing trend.

"Lodsys has targeted numerous companies throughout the U.S. with demands that the companies either pay a license or settlement fee in exchange for a covenant not to sue, or in the alternative, face the exorbitant cost of defending a patent infringement lawsuit."

Lodsys CEO Mark Small has declined to speak with XBIZ on the letters and the suits, saying that he would let court filings do the talking for the company. "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," he said.

***

UPDATE (3:10 P.M.): Lodsys on Tuesday filed suit against DriveTime, ESET, Foresee Results, LivePerson, OpinionLab and The New York Times Co.

In its suit, Lodsys alleges that all of the companies are infringing on one or more of its held patents. The suit was filed at the U.S. District Court in Marshall, Texas.

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

AEBN Publishes Report on Fetish Trends

AEBN has published a report on fetish categories from its straight and gay theaters.

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) has issued a notice that North Carolina's Prevent Exploitation of Women and Minors Act goes into effect on December 1.

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.

Show More