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March 07, 2005

Apple's New DRM Partner

PatrightsSilicon.com: I've seen a few posts today all alluding to the fact that Pat-rights, an IP portfolio firm based in Hong-Kong, "wants 12 per cent of all gross profits from both iTunes and iPod sales, claiming it holds the patents to the DRM technology that governs the use of downloads through Apple's online music service."  According to the United States Patent and Trademark Office's records, the patent US Patent 6,665,797 was granted to Tse Ho Keung in December of 2003. David Berlind's blog on ZDNet has transcripts from an interview with Joseph Zito, the attorney representing Pat-rights in the case.  Evidently, a lawsuit could be filed against Apple as soon as March 21st.  Seems hard to believe, but if true - this could be just the type of blunder that Microsoft and others are hoping and praying for from the digital music behemoth, since the profit margins on downloads are already so razor thin...

Related Stories:
iTunes DRM Patent is Called into Question
Firm seeks piece of Apple pie via iPod claim
DRM patent holder seeks 12 percent of iTunes/iPod gross from Apple

Posted by Todd in Apple | Permalink


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