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Lodsys goes after New Zealand games developer for in-app purchases and upgrade functionality

There are small time patent trolls like Tim Langdell who are a minor annoyance for developers in the games industry, and then there are patent trolls like Lodsys who are a considerable force to be concerned about.

While the likes of Tim can easily be avoided (particularly since Tim has lost his trademark on the word 'Edge'), what do you do when you're hit with a patent infringement from a considerably powerful and notorious patent troll, Lodsys, for very common app functionality like in-app purchases or the ability to upgrade the game from a lite to full version through in-game purchases?

Well, for many without the millions of dollars to fight the lengthy legal battle, games developers have had to simply make a silent settlement and pay up the licensing costs, and it may be what New Zealand based games developer, Boolba Labs, may have to do after recently receiving the dreaded infringement letter from Lodsys for their free Android game, Paper Jet Lite.

Lodsys have made quite a name for themselves this year for going after many iOS and Android app developers with take down orders or demands to remove features they have patents for. They've gone for small indie developers right up to the big names and large publishers, including Rovio (Angry Birds), EA, Atari, Square Enix and Take-Two Interactive. They've also tackled other commercial companies outside of games such as HP, Brother, adidas, Best Buy, and The New York Times Company. They also appear to be a well funded company and more than capable to sustain many simultaneous lawsuits. Small time app developers have been forced to remove their games from the U.S market to avoid litigation, while others have been urging Google and Apple to make an effort to protect their developers.

Intellectual Property analyst, Florian Mueller, has been following Lodsys and offered some advice via his blog to those who have been contacted by Lodsys...

(Florian) So if you have received a Lodsys letter, and especially if Lodsys is making calls to pressure you into signing, you should ask Apple and/or Google (depending on which platform/s you develop for) whether they cover all of your costs and risks if you pick a fight with Lodsys, including but not limited to

lawyers' fees

court fees

possible damage awards (which could theoretically amount to millions)

related travel expenses

your time spent on this matter instead of income-producing work

If you're in Australia and you're facing the same dilemma as Boolba Labs in New Zealand, we recommend you contact Marshalls & Dent lawyers in Melbourne right away for professional legal advice. Their specialty is in the screen industry, covering Film, TV, Mobile, and Indie Games.