ZapMedia v. Apple
Posted: Fri Mar 14, 2008 1:35 pmApple inc. was sued Wednesday over allegations its Itunes online music store and Ipod music players are illegally using digital media over the internet. Atlanta based ZapMedia services inc. sued apple in u.s. district court for the eastern district of Texas. accusing the company of violating two ZapMedia patents. ZapMedia wants royalties on apples sales of Ipods and Itunes music, which reached nearly $11 BILLION last year. The success of Itunes has helped make apple the number two music retailer in the U.S. behind Wal-Mart. The patents in question cover a way of sending music and other digital content from servers to multiple media players, a broad description that could also apple to a wide swath of other companies selling digital media and the devices to play it. ZapMedia applied for the patients in 1999. One was granted in March 2006, the other on Tuesday. ZapMedia said it met with Apple to discuss licensing, but Apple rebuffed the offer.
If ZapMedia gets there way, Apple might become bankrupt. I know it doesn't seem like a lot ($11 billion) in just Ipods and Itunes, but really that is Apple is living on to stay alive. So what are everybody's thoughts on this?