Lars,
I applied the patch, but it didn't seem to make any difference.
BTW, I used the following sequence of commands to build and apply the change. Let me know if I missed anything. I'm certainly no Linux expert.
cd usr/local/src/libiio/iiod
Manually edited iiod.c with patch changes
cd ..
make iiod
make install-iiod
/etc/init.d/iiod.sh stop
/etc/init.d/iiod.sh start
-Tom