ZapMedia Blasts iTunes With Patent Lawsuit

ZapMedia Services has filed a patent infringement lawsuit against Apple (Nasdaq: AAPL) for unspecified damages related to Apple's iTunes and related media players, most notably the iPod.

ZapMedia said it made multiple attempts to resolve its patent-related concerns, as well as license its system directly to Apple, but was rebuffed by the company.

ZapMedia, which is the predecessor of ZapMedia Services, created a platform and vision for the enjoyment of digital media assets, the company has claimed. In connection with this vision, ZapMedia said it "developed a system by which it could provide hardware, software and content to consumers to allow them to gain control over their digital media assets."

To protect this intellectual property, ZapMedia obtained U.S. Patent Nos. 7,020,704 (for "system and method for distributing media assets to user devices via a portal synchronized by said user devices") and 7,343,414 (for "system and method for distributing media assets to user devices and managing user rights of the media assets.")

Patent 7,020,704 was granted March 28, 2006, while Patent 7,343,414 was approved on March 11, 2008, though ZapMedia apparently filed its first patent in October of 2000 and waited several years before it was granted.

Shopping the Vision - No Buyers

ZapMedia said it met with many major technology and media companies around the globe, including Apple, describing its vision in great detail in the late 1990s. "Without asking ZapMedia for permission, Apple subsequently unveiled its own system. Apple announced its iPod MP3 player with an integrated iTunes software application in October of 2001 and its iTunes store in April 2003," ZapMedia noted.

The suit was filed in the Marshall Division of the District Court for the Eastern District of Texas, which happens to be a district that historically has favored plaintiffs in patent-infringement cases.

"The Complaint alleges that ZapMedia Services' property is being exploited in a manner which is unlawful, and by law, ZapMedia Services is therefore entitled to a reasonable royalty on Apple's revenues related to the infringement," noted Steven G. Hill, of Hill, Kertscher and Wharton, lead litigation counsel to ZapMedia Services.

Dating to June 2006 and continuing through the fall of 2007, ZapMedia said it made Apple aware of the patents and their availability for license. "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 J. Frohwein, general counsel of ZapMedia Services, noted.

Apple did not respond to a request for comment. The company typically does not comment on pending litigation.

What About Other Tech Giants?

Other technology giants like Microsoft (Nasdaq: MSFT) have models similar to Apple's. Where Apple has the iPod, Microsoft has the Zune. Where Apple uses iTunes, Microsoft uses its Zune Marketplace. Might there be other technology companies that could face similar lawsuits?

"At this point in time, our focus in on the Apple suit," Frohwein told MacNewsWorld. "We will not comment as to whether and to what extent there is other infringement existing in the marketplace."

Critical Timing

While it seems odd to see a patent infringement lawsuit so long after the launch of Apple's iTunes store and iPod devices, some of the delay may be attributed to the U.S. Patent Office and its application processing speed.

"Patents can take several years to issue at this time," Frohwein said. "We are aware that the patent office is taking strides to expedite this process and hope that it is successful in doing so."

Frohwein declined to comment further into the specifics of the pending litigation.