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by juiceandjuice 5501 days ago
If I was a conspiracy theorist, I'd say some of this looks awfully convenient, and maybe even well timed, for Apple.

"See, the 30% we charge you isn't so bad after all, is it?"

3 comments

I sincerely don't think that it's a stunt by Apple, and to claim that it is would require a fairly myopic view of the state of software patents today.

That said, the "conspiracy theory" falls apart because this is ultimately self-serving by Apple; in-app purchases translate to money for them, and if developers are too scared to include content purchasing options in their apps (since in-app is the only permitted method, natch), it means a direct hit to Apple's bottom line. It isn't altruistic towards developers, so it's silly to see it as a justification of Apple's 30% cut.

Apple Exec: People are pissed about the 30% in-app thing, what should we do?

Other Apple Exec: Add value to it.

Apple Exec: How do we do that?

Other Apple Exec: Show people that if they didn't use our methods and lose their 30%, they'll get sued for licensing fees for an in-app purchasing patent and probably lose it anyways.

Apple Exec: "Hey Lodsys, we're already paying you money, but could you do us a favor real quick..."

I'm not claiming this is what happened, because I sincerely don't think it is what went down. I'm just illustrating a theoretical and likely fictional path.

But...the problem is that developers are getting sued for the thing they were pissed about before, so now they're just double-pissed. It's not like they're getting sued for using some alternative that saves them 30% on purchases.
Why bring it up then?
For the original application purchase, 30% wasn't ever bad. Back in the heyday of PalmOS apps, I was paying 50 on the big ones.

Per-subscription costs, however, are a different story.

This issue is only about in-app purchases, not app purchases, and that's where my comment was targeted (i.e. Amazon's kindle app)
30% is a lot more than the 0.575% Lodsys is asking for licensing.

http://goo.gl/Q1gnn+

Unshortened URL: http://www.lodsys.com/1/post/2011/05/q-what-are-you-charging...

0.5% doesn't seem much, but if they succeed in this, many more other patent trolls will come out of the woodwork and all will demand a small percentages. Lots of these quickly add up, with 100 patent trolls parasiting on your App, you lose already half the profit.