Comments on: Apple Wants To Take The Bite Out Of Lodsys’ Suit http://paidcontent.org/2011/06/10/419-apple-wants-to-take-the-bite-out-of-lodsys-suit/ The economics of digital content Sat, 18 May 2013 18:43:38 +0000 hourly 1 http://wordpress.com/ By: Ingrid Lunden http://paidcontent.org/2011/06/10/419-apple-wants-to-take-the-bite-out-of-lodsys-suit/#comment-84033 Fri, 10 Jun 2011 15:04:37 +0000 http://paidcontent.wp.gostage.it/2011/06/10/419-apple-wants-to-take-the-bite-out-of-lodsys-suit/#comment-84033 That’s interesting, James. Haven’t seen this suggestion before. But is it legal?

]]> By: JamesKatt http://paidcontent.org/2011/06/10/419-apple-wants-to-take-the-bite-out-of-lodsys-suit/#comment-84032 Fri, 10 Jun 2011 14:59:37 +0000 http://paidcontent.wp.gostage.it/2011/06/10/419-apple-wants-to-take-the-bite-out-of-lodsys-suit/#comment-84032 There is no way that Apple can protect all small developers against patent trolls.  The U.S. legal system, unfortunately, makes it far to easy to sue others without repercussions.  Just look at how copyright trolls are suing thousands of people to extort money from them by using the U.S. courts.

INAL, but I think the best thing to do for a small developers in cases like this is to financially structure themselves to protect themselves legally.  For example, have the app owned by a limited liability company, which in turn pays another corporation all of its profits from the app for consultation fees, which in turn, pays all of those profits to another corporation for consultation fees, which then pays the developer for consultation fees.  Thus, the original limited liability company makes no money. Sue it if you want to, but you’ll get no money from it or you may owe the IRS a lot of money even if you win.  Thus, you make it unappetizing a target to sue.

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