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

Ofcom: Age Assurance Going Live Across 'Thousands' of Porn Sites

U.K. communications regulator Ofcom said in a statement Thursday that providers of online pornography are implementing age assurance across “thousands of sites” accessible in the U.K., in response to Ofcom’s Online Safety Act (OSA) enforcement program.

ASGMax Debuts 'Roleplay' AI Chat Feature

Alpha Studio Group (ASG) has introduced the ASGmax Roleplay AI chat feature.

XBIZ Miami's Host Hotel Sold Out, General Registration Now Open

Guest rooms at XBIZ Miami’s exclusive conference venue, Nautilus Sonesta Miami Beach hotel in South Beach, are now completely sold out.

Adult Industry Educational, Networking Platform 'Imperfectly You' Launches

Imperfectly You, an educational and networking platform for adult industry workers, has officially launched.

Segpay to Launch News Network for High-Risk Merchants

Segpay has announced that it will launch the Segpay News Network (SNN) on April 15.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pineapple Support to Host Autism Spectrum Support Group

Pineapple Support is hosting a free online support group for performers and creators who are, or suspect they may be, on the autism spectrum.

ImLive Launches Revamped Member Loyalty Program

Cam platform ImLive has revamped its member loyalty program.

GoFundMe Set Up for Danny Ferretti's Medical Expenses

A GoFundMe campaign has been set up for Fangear founder Danny Ferretti, who requires extensive lung surgery.

Byborg Acquires Cuties AI

Byborg Enterprises has acquired adult artificial intelligence startup Cuties AI.

Show More