The Association for Competitive Technology applauded Apple’s step today to reassure app developers that in-app purchases are covered by the Cupertino company’s license of Lodsys technology.  Last week, Lodsys sent letters to individual app developers demanding they license the use of its technology.  ACT Executive Director Morgan Reed:

The developer community is pleased that Apple has taken steps to reassure app makers regarding Lodsys’s licensing demands.  Lodsys in-app purchasing technology is already licensed by Apple.  Developers share that company’s understanding that in-app purchasing applications written for its iOS platform are covered under this license.  Lodsys has created uncertainty in the apps marketplace and we hope that it will take the appropriate step to withdraw its unwarranted licensing demands.

The Association for Competitive Technology today applauded the settlement reached between TiVo and Echostar as a victory for intellectual property rights.  ACT submitted two amicus briefs in the case supporting TiVo in its case against Echostar.  ACT’s Morgan Reed issued the following statement in response to the settlement.

Today’s settlement marks a decisive moment for startups and small business innovators.  Despite the widespread adoption of its DVR, TiVo remains a small business.  Like other small companies, it can compete with massive companies like EchoStar by creating game-changing new technologies.  TiVo had a great new product that changed the way we watch TV, but had to fight more than a decade to keep Echostar from stealing it.

Last month’s court decision, and today’s resulting settlement, was a big victory for startups.  It  showed that courts will protect the intellectual property of a small business no matter how many resources a big company throws at them.  This is crucial for entrepreneurs because they will only take risks making new companies and technologies if they are certain their innovation will be protected from copycats and thieves.

The Association for Competitive Technology, a trade association representing thousands of mobile app and software developers, today responded to the Cellular Telephone and Internet Association’s proposal to rate smartphone apps, rejecting the suggestion that CTIA act as the apps regulator.  Software developers have expressed loud and clear that they do not want an association with competing interests to regulate the applications ecosystem.

“Recently, government officials and trade associations have been speaking about app developers, but no one has been speaking to app developers,” said ACT Executive Director Morgan Reed.  “Wireless carriers and their representatives have suggested that apps developers submit to a ‘self-regulatory’ process in which carriers and handset manufacturers would set and enforce standards. This is not the right direction.

“We have heard loud and clear from our members that any self-regulatory initiative for apps developers should be undertaken by apps developers.  They are wise enough to understand that self-regulation does not mean putting your company’s future in the hands of another industry.

“Phone manufacturers have helped to create an ecosystem that supports our applications, but their concerns are focused on maximizing the number of handsets sold, not on the needs of application developers.  An onerous rating system may have no direct impact on handset sales, but could devastate a small developer whose business relies on the ability of consumers to determine for themselves which feature sets they prefer.”

App sales are currently a $2 billion-a-year industry, expected to rise to $38 billion by 2015.  The rising demand for wireless broadband and mobile devices derives largely from the widespread availability of apps created by application developers to make these devices productive and enjoyable to use.

A copy of the ACT letter to CTIA may be found here, http://acton.li/mQFSUg

The Association for Competitive Technology (ACT) applauded today’s Federal Circuit Court decision in Tivo v. Echostar.  ACT filed a brief in the case in support of TiVo against Echostar’s infringement of its intellectual property and its repeated contempt violations for refusing to disable infringing devices.

“Today’s decision by the Federal Circuit has finally brought an end to Echostar’s strategy of infringe first and ignore the courts later,” said ACT Executive Director Morgan Reed.  “After repeatedly being found in contempt for failing to halt its infringement of TiVo’s DVR technology, Echostar now faces substantial penalties and damages, and the enforcement of a permanent injunction requiring its infringing DVRs be disabled.

“This important decision vindicates the substance of Tivo’s claims that Echostar acted with contempt for both Tivo’s federal patent rights and the federal court proceedings Tivo was forced to file to enforce them. The Federal Circuit’s clarification of its own prior standard for assessing contempt in patent infringement cases will require some further proceedings on remand to the district court. Nevertheless, the seriousness of the rulings affirmed by the Federal Circuit should require swift and expedited action on remand to ensure that Echostar finally ceases to benefit from its long strategy of infringement, delay and contempt.

“TiVo’s victory in this case is important for startups and small and medium-sized businesses that take risks to create innovative new products and marketplaces.  The protection of intellectual property is essential for startups to invest in innovation and today’s decision reaffirms that.”