Friday, 14. March 2008
Apple’s iTunes Store Lands It in Trouble
ZapMedia, a U.S. based company, filed a lawsuit against Apple for allegedly using patented technology to distribute digital media over the Internet through its online iTunes Store.
ZapMedia filed the suit, this week, in U.S. District Court in Marshall, Texas. "The complaint alleges that ZapMedia Services' property is being exploited in a manner which is unlawful, and by law ZapMedia Services is therefore entitled to a reasonable royalty on Apple's revenues related to the infringement," ZapMedia lawyer Steven G. Hill of the law firm Hill, Kertscher & Wharton LLP said in a statement.
Specifically, ZapMedia holds patents on sending music from a server to multiple players. The company applied for the patents in 2000, however the first one wasn't granted until March 2006, and the other recently this week. The first patent (7,020,704) involves "a system and method for distributing digital media assets to a plurality of users." The second (7,343,414) also deals with the same method, and seems to expand upon the previous patent.
ZapMedia said it met with Apple to discuss licensing, but Apple rebuffed the offer. "When someone takes our vision and our intellectual property without a license after several attempts, we have no option but to protect it through every means available to us," Robert Frohwein, ZapMedia's general counsel, said in a statement.
ZapMedia is reportedly seeking monetary compensation for Apple’s alleged actions to exploit their intellectual property in an unlawful manner. Besides money compensation, ZapMedia is also seeking for permanent injunction against Apple.