Apple sued over iPod and iTunes technology, again

By Chris Foresman
From: http://arstechnica.com
2008-3-17 11:01

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Everyone's favorite company to sue is listed in yet another lawsuit, this time over the very foundation of the iPod and iTunes combination. This is one of 20 lawsuits filed against Apple in recent months. These lawsuits claim everything from a prison inmate that was or will be sexually harassed "with Apple gadgets" to patent infringment on a "Method for Operating an Electronic Device Using a Pointing Device." Seems like everyone is trying to get some piece of Apple's pie.

Now ZapMedia Services, Inc., the holder of intellectual property of the now-defuct ZapMedia, Inc., is claiming the whole system of syncing digital media between iTunes, the iTunes Store, and iPods violates its two and only patents. Filed yesterday in the ever-popular Texas Eastern Federal Court, the suit claims Apple infringes on Zapmedia's "System and method for distributing media assets to user devices via a portal synchronized by said user devices" patent and "System and method for distributing media assets to user devices and managing user rights of the media assets" patent.

The patents describe a system essentially the same as iTunes, though it is similar to systems like MovieLink or Vongo as well. The second patent describes a basic DRM platform similar to Apple's FairPlay, but again these are also similar to Real's Helix or Windows Media DRM. It's not clear whether ZapMedia will be suing other companies as well. They may wait to see if the suit against Apple is successful, though AppleInsider reports that the company "met with several major technology and media companies around the world" when it filed for its first patent in 2000.

Obviously ZapMedia believes it has a case, but if Apple is willfully infringing, why wouldn't it just license the patents and avoid the legal hassle and fees? Apple has yet to file its answer to the claims, but it's clear that Apple either doesn't believe it is infringing or believes prior art will invalidate the patents. Having faced numerous lawsuits, I think this bit from the 2007 10K filing sums up Apple's opinion:

    The Company is subject to various legal proceedings and claims ... [and] is also subject to certain other legal proceedings and claims that have arisen in the ordinary course of business and which have not been fully adjudicated. In the opinion of management, the Company does not have a potential liability related to any current legal proceedings and claims that would individually or in the aggregate have a material adverse effect on its financial condition or operating results.

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