ZapMedia Services vs Apple: iTunes, iPod

Atlanta-based ZapMedia Services Inc. sued Apple Inc in U.S. District Court for the Eastern District of Texas, accusing the Cupertino-based Company of violating two ZapMedia patents.

ZapMedia alleges iTunes online music store and iPod music players are illegally using a patented method for distributing digital media over the Internet.

“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 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.

ZapMedia Services Inc alleges:

1. On March 26, 1006, U.S. Patent No. 7,010,704 (the “704 patent”), a copy of which is attached hereto as Exhibit “A,” was duly and legally issued by the United States Patent and Trademakr Office. ZapMedia is the owner by assignment of all right, title and interest in and to the ‘704 patent, including all right to recover for any and all past infringement thereof.

2. On March 11, 2008, U.S. Patent No. 7,343,414 (the “414 patent”), a copy of which is attached hereto as Exhibit “B,” was duly and legally issued by the United States Patent and Trademark Office. ZapMedia is the owner by assignment of all right, title and interest in and to the ‘414 patent, including all right to recover for any and all past infringement theereof.

3. Upon information and belief, Apple has in the past and continues to infringe each of the ‘704 patent and the ‘414 patent by making, using, selling and/or offering to sell, in this judicial district and elsewhere in the United States, products and services which are covered by at least one claim of each of the ‘704 patent and ‘414 patent.

4. ZapMedia is entitled to recover money damages from the defendant to compensate for the infringement described above, in an amount of no less than a reasonable loyalty.

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 apply to a wide swath of other companies selling digital media and the devices to play it. ZapMedia applied for the patents 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. An Apple spokeswoman said the company doesn’t comment on pending lawsuits.

Related Documents: Court Filings for ZapMedia Services Inc. vs Apple Inc.