Patent troll Lodsys backs out of lawsuit at the last minute

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The notorious patent troll Lodsys today abandoned a lawsuit on the eve of the trial rather than face the possibility of losing on the merits of his claims. The security firm, Kapersky Labs, one of a dozen defendants in his two year old lawsuit over claims related to in-app purchases, said in a blog post today that Lodsys settled the claims without winning any concessions from Kapersky. “Churchill was right: ‘Never give up,'” company founder Eugene Kaspersky wrote. “We’ve followed his advice in our fight against a particular troll. As a result the troll gave up and ran away with nothing and its tail between its legs.”

Lodsys earned their “troll” name by buying technology patents and then using them to sue other business for alleged infringement. In this particular case, patents on obtaining user feedback from fax machines were being used  to extract payments for modern-day technologies like in-app purchases. The other 54 companies in this case settled with Lodsys but facing the prospect of losing their trial to Kapersky – which would destroy the value of the patents – Lodsys settled themselves. The judge then dismissed the case with prejudice, meaing that Lodsys cannot bring this to court again. They were also ordered to pay Kapersky’s legal fees.

Source – The Verge

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