itunes hit by lawsuit

22 May


Why would a company that is currently involved in motion picture technologies and streamlining development suddenly become involved in patents that they acquired nearly two decades ago?




It may very well be all about the money.  For a company like SightSound, one of the first companies to sell music and video over the internet, patents acquired in 1993 may very well end up being a viable cash stream.  They’ve recently filed suit against Apple, claiming that Apple infringed upon three of its patents when they launched their iTunes platform.




It may seem like such a lawsuit is a little out of the blue, given how long iTunes has been around.  But SightSound recently won another court case where they had to defend their patents against Napster.  This defense involved a lengthy re-examination of their patents and experts like Yar Chaikovsky, an intellectual property attorney and partner with the McDermott Will & Emery law firm, think that this might very well be key to future success.


“Patents that have been successfully re-examined are often much more difficult to invalidate in a court of law,” said Yar Chaikovsky.


It’s also possible that SightSound is simply looking at Apple’s success with jealous eyes.  Apple has sold more than 10 billion songs since it launched, and while the global digital music market made about $5.2 billion in 2011 Apple collected about 70% of that profit.


Given the current economy, we very well might see more companies like SightSound, busily trying to make money off of their patent portfolio any way they can.



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