The last 24 hours has seen a number of developments regarding various legal issues that involve Apple. It’s not the most riveting news, so rather than writing them up as separate posts, we’ve decided to combine them into one, easily digestible post.

Apple Responds to DOJ Allegations

Late yesterday, somewhat belatedly, Apple issued AllThingsD with a statement responding to the DOJ’s allegations of collusion with the big book publishers. It was a similar statement that the other publishers made earlier and conveyed the idea that Apple’s entrance into the e-book market disrupted Amazon’s prior monopoly in the market.

The DOJ’s accusation of collusion against Apple is simply not true. The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon’s monopolistic grip on the publishing industry. Since then customers have benefited from eBooks that are more interactive and engaging. Just as we’ve allowed developers to set prices on the App Store, publishers set prices on the iBookstore.

Apple Permitted To Intervene in Lodsys Case

You may recall that Lodsys filed lawsuits against a number of iOS developers last year for allegedly violating their patents. Apple filed a motion to intervene in the case last year, claiming that the licensing it has attained from Lodsys itself also protects third party developers on the App Store. The court yesterday agreed with Apple and has granted permission to Apple’s motion to intervene. Unfortunately, for many developers this is too little too late, with many settling with Lodsys early on to avoid costly legal fees.

Apple Loses Attempt To Restore Push Email to German iCloud Users

Apple had been forced to suspend email push services for German iCloud users earlier in February this year after Motorola succeeded in bringing an injunction against Apple. Today the Mannheim regional court upheld that decision and Apple will be required to pay damages to Motorola Mobility.

Apple Required to Compensate Tokyo Couple For iPod Nano that Burst Into Flames

In July 2010, a first generation iPod nano spontaneously burst into flames and caused burns to the owner’s hand that took more than a month to heal. Apple was required to pay the owner approximately US$7,400 for medical fees and compensation for the pain and suffering. Apple began a worldwide replacement program of the device last November.

[via, AllThingsD, TUAW, TNW, Cult of Mac]

As noted by FOSS Patents, Lodsys, the company that started suing app developers over alleged patent infringement for in-app purchases and upgrade buttons back in May, has amended its complaint including more companies allegedly infringing on their patents, like Rovio.  Lodsys has left out Vietnamese company Wulven Games from the suit, but has now included other bigger names like the makers of Angry Birds, EA, Atari, Square Enix, and Take-Two Interactive. In total, Lodsys is now suing 37 defendants — smaller independent companies like The Iconfactory were first sent notices by Lodsys in May.

Lodsys is still not impressed by Apple’s assertion that its own license to Lodsys’s patents extends to its app developers. I also pointed out that Apple’s “exhaustion” theory is not necessarily accurate. Also, Lodsys may be able to capitalize on contractual commitments that might preclude Apple and Google from challenging Lodsys’s patents and the related infringement allegations.

With today’s amended complaint, Lodsys is currently suing a total of 37 defendants, and there may be more to come.

In the first weeks of June, Apple filed a motion to intervene in the proceedings between Lodsys and app developers hit by the patent infringement claims — which Apple claimed have no basis as Apple is “indisputably licensed” to the patents, and the app makers are protected by the development agreement with Apple. Florian Mueller at FOSS Patents doesn’t seem to share a similar view, and we recommend you check out all the updates and timeline of events over at his blog.

You may recall that in the current legal battle between Apple and Samsung, Samsung had demanded Apple hand over the iPhone 5 and iPad 3 (or the newest prototypes). Samsung claimed, when it demanded these products, that it was equal to Apple’s claim to getting early access to Samsung products (although they had been previously revealed and put on pre-order). Apple amended its complaint with Samsung last Thursday and after reviewing that, Judge Lucy Koh yesterday made her decision regarding Samsung’s request for early access to the iPhone 5 and iPad 3 and denied it.

As FOSS Patents explains, the reasoning Judge Koh effectively gave was that “Apple’s request for expedited discovery was far more justified and far less prejudicial”. Going into more depth on this, Apple had required early access to Samsung products because it needed to evaluate whether or not to include them in their complaint. In addition, Samsung’s products were already circulating and details were known about them, unlike the iPhone 5 and iPad 3 which have not been revealed in any manner.

The judge made a lot of effort in her 11-page order to explain that Samsung is entitled to “parity” but its motion was overreaching in this case.

However, it wasn’t all good news for Apple, with the Judge potentially suggesting that Apple’s request for a preliminary injunction on certain Samsung products may be delayed or denied.

Instead, it may be necessary for the court to evaluate such a motion against the background of the iPhone 5 (as far as any Samsung phones are concerned) and the iPad 3 (as far as any Samsung tablet computers are concerned), whenever Apple is in a position to present those products.

In other (related) news, Lodsys has asked for a two-month extension to respond to Apple’s motion to intervene. They had been required to respond by next Monday (June 27) by they’re asking the court for a two-month extension until August 27 to respond. Although it will effectively delay proceedings, Lodsys claims that it is “not for purposes of delay” and furthermore states that they have conferred with Apple’s counsels – who apparently do not oppose the extension.

The request does have to be approved by the court, but the court can choose a length less than requested, say just one month instead of two. Despite this, Lodsys is continuing to issue patent infringements to various developers, with a large number of Android developers receiving notices yesterday.

[Via FOSS Patents (1) (2)]

According to FOSS Patents, Apple has filed a motion to intervene in the proceedings between Lodsys and several app developers. Lodsys nine days ago filed a civil suit against several app developers including Iconfactory, Illusion Labs and Quickoffice in East Texas over patents it owns.

Whilst Lodsys can oppose Apple’s attempt to intervene in the case, FOSS Patents says that “Apple is fairly likely to be admitted as an intervenor”. In Apple’s proposed defence, it is argued that Apple’s existing license agreement with Lodsys covers the third party developers being sued – an argument Apple made with Lodsys in its letter to them. Contrary to what some might have presumed would happen, Apple does not claim any other defences such as disputing the validity of the patents – but the third party developers could still do so.

I’m reasonably optimistic that Apple will get to intervene. There appears to be precedent for that. Apple cites three interventions admitted in more or less comparable cases (Intel against Negotiated Data Solutions, Intel against U.S. Ethernet Innovations, and Microsoft against TiVo).

It isn’t clear what Apple’s relationship with the developers is (likely under a non-disclosure agreement) but more than likely is that Apple will help them with financial costs and perhaps even the potential risks. In its motion, Apple states that those developers being sued by Lodsys are “are individuals or small entities with far fewer resources than Apple and [...] lack the technical information, ability, and incentive to adequately protect Apple’s rights under its license agreement”.

In its post, FOSS Patents also shares some screenshots of the developers iTunesConnect app management service which asks developers about potential legal issues with their apps. If a developer says “yes” to legal issues, that app will become “unavailable to be restored and/or downloaded as a previous purchase by App Store customers” through the new iCloud service.

If you want a full rundown of Apple’s motion to intervene, FOSS Patents has an excellent run down, along with questions that the motion does not answer. If you feel brave enough you can also read the official motion here.

[Via FOSS Patents]

With a series of blog posts published earlier today, Lodsys has confirmed [via MacRumors] that they’ve started filing lawsuits against app developers allegedly infringing patents related to in-app purchases and upgrade links in their mobile applications. Lodsys initially said that they would give developers 21 days to license the patents before filing any lawsuits, but the firm decided to change its schedule in order to defend against Apple’s legal response, which showed support for iOS developers and claimed third-party “app makers” were not infringing any patent as Apple is already licensing patents from Lodsys.

Why did Lodsys sue some App Developers on May 31, 2011

Lodsys chose to move its litigation timing to an earlier date than originally planned, in response to Apple’s threat, in order to preserve its legal options.

As for why they have decided to target small, indie developers who don’t have the resources to legally defend themselves, Lodsys writes:

Why are you targeting Apple developers or Android developers? Why are you picking on small developers who cannot defend themselves?

This story is about accountability for actions. If you are a Developer, it’s about knowledge about the scope and risks of your own business.

Lodsys has only one motivation: we want to get paid for our rights.

Lodsys also posted a response to Apple’s claims that third-party developers using Apple’s SDK and agreeing to the company’s terms are not infringing patents from Lodsys. They company also says they’ve sent a letter to Apple’s legal team, which Apple can publish in its entirety if they want to.

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 previously explained that usage of in-app purchases would cost developers 0.575% of their US revenue over the period the technology was implemented — for example, an app that generates $1 million in revenue  in one year would pay $5,750 to Lodsys. Finally, Lodsys says they’ll send $1,000 as reimburse to developers hit by the lawsuit if the whole story turns out to be wrong:

While it is true that Apple and Lodsys have an obvious dispute about the scope of Apple’s license to the Lodsys Patents, we are willing to put our money where our mouth is and pay you something if we are wrong.  Therefore, Lodsys offers to pay $1,000 to each entity to whom we have sent an infringement notice for infringement on the iOS platform, or that we send a notice to in the future, if it turns out that the scope of Apple’s existing license rights apply to fully license you with respect to our claim relating to your App on Apple iOS.

As many previously suggested after Apple’s response, the story is far from over and Lodsys appears to be pursuing its agenda by suing developers that don’t agree to pay licensing fees. Several bloggers broke down Lodsys’ patent claims in the past weeks, and the EFF even came out and said Apple should stand up for its developers.

Update: Florian Mueller of FOSSpatents tweets the names of the companies and developers sued by Lodsys today.

According to a number of tweets from iOS developers hit by Lodsys’ patent infringement claims in regards to in-app purchases and upgrade buttons, Apple has started sending out emails earlier today with legal documentation about Lodsys’ claims. While the contents of the entire email and letter haven’t been posted yet, the first details have started making the rounds of Twitter as Apple is apparently offering support to iOS developers by helping them defending against Lodsys patent infringement claims.

The first paragraph of the email has been posted by Craig Grannel at Revert To Saved:

There is no basis for Lodsys’ infringement allegations against Apple’s App Makers. Apple intends to share this letter and the information set out herein with its App Makers and is fully prepared to defend Apple’s license rights.

The Loop has posted another paragraph of the email, with more coming soon:

Apple is undisputedly licensed to these patents and the App Makers are protected by that license,” wrote Bruce Sewell, Apple Senior Vice President and General Counsel.

From what we can gather so far, it appears Apple is asking Lodsys, and CEO Mark Small, to withdraw letters sent to developers as they’re already covered by Apple. We’ll update this story with more details as they become available.

Another excerpt from Apple’s email confirms that the company believes developers shouldn’t pay any licensing fee because Apple’s already licensed to use Lodsys’ patent and offer the technology to third-party App Store developers through software development kits and  APIs:

Thus the technology that is targeted in your notice letters is technology that Apple is expressly licensed under the Lodsys patents to offer to Apple’s App Makers. 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.

Update: full text of the letter sent by Apple to Lodsys’ CEO Mark Small has been posted by Macworld. A few notable excerpts:

Because I believe that your letters are based on a fundamental misapprehension regarding Apple’s license and the way Apple’s products work, I expect that the additional information set out below will be sufficient for you to withdraw your outstanding threats to the App Makers and cease and desist from any further threats to Apple’s customers and partners.

First, Apple is licensed to all four of the patents in the Lodsys portfolio. As Lodsys itself advertises on its website, “Apple is licensed for its nameplate products and services.” See http://www.lodsys.com/blog.html (emphasis in original). Under its license, Apple is entitled to offer these licensed products and services to its customers and business partners, who, in turn, have the right to use them.

Through its threatened infringement claims against users of Apple’s licensed technology, Lodsys is invoking patent law to control the post-sale use of these licensed products and methods. Because Lodsys’s threats are based on the purchase or use of Apple products and services licensed under the Agreement, and because those Apple products and services, under the reading articulated in your letters, entirely or substantially embody each of Lodsys’s patents, Lodsys’s threatened claims are barred by the doctrines of patent exhaustion and first sale.

The conclusion of the letter:

Therefore, Apple requests 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.

Contrarily to speculation and rumors posted in the past week, Apple isn’t avoiding the situation and is now actively taking part in backing independent developers hit by Lodsys claims of patent infringement in applications that use Apple’s own iOS SDK. By reassuring that developers shouldn’t pay any licensing fee because Apple is already licensed to offer the technology behind the App Store and in-app purchases, the company is taking a firm position in defending its ecosystem and “app makers.” Several bloggers and patent experts tried to analyze the patent claims over the past two weeks, with the EFF even coming out and saying Apple should have stepped in and started defending its iOS devs right away. As usual Apple has taken its time to study the issue and come up with facts, and is now simply asking Lodsys to withdraw every notice letter and infringement claim sent out to developers.