Apple is the leading distributor of MP3 players and MP3 downloads. Before the iPod, the MP3 player was very new and considered rare. Now Apple is being sued over allegations that say it is distributing music over the Internet using a patented technology.
Atlanta-based ZapMedia Services Inc. sued Apple in U.S. District Court for the Eastern District of Texas, accusing the Cupertino-based company of violating two ZapMedia patents. 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.
This lawsuit could cause major issues for Apple. Not only could the company lose a lot of money — but it could be forced to redo the methods by which it distributes music to its customers. It will be interesting to see how this plays out.