The iTunes Lawsuit
Apple is the leading distributor of MP3 players and MP3 downloads. Before the iPod — the MP3 player was very new and considered rare. Now Apple is being sued over allegations that say they are distributing music over the internet using a patented technology.
Atlanta-based ZapMedia Services Inc. sued Apple in U.S. District Court for the Eastern District of Texas, accusing the Cupertino-based company of violating two ZapMedia patents. ZapMedia wants royalties on Apple’s sales of iPods and iTunes music, which reached nearly $11 billion last year. The success of iTunes has helped make Apple the No. 2 music retailer in the U.S. behind Wal-Mart Stores Inc., according to market researcher NPD Group.
Link: Apple sued over iTunes technology
This lawsuit could cause major issues for Apple. Not only could they lose a lot of money — but they could be forced to redo the methods in which they distribute music to its customers. It will be interesting to see how this plays out.
Tags: Apple, iPod, iTunes, MP3 DRM
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