Pat-rights demands 12 Percent from iTunes

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Date: Friday, March 4th, 2005, 09:13
Category: Archive

An interesting story cropped on Pat-Rights.com claiming that iTunes’ identity verification system infringes upon US Patent 6,665,797 for “Internet/Remote User Identity Verification.” Read more…


An interesting story cropped on Pat-Rights.com claiming that iTunes’ identity verification system infringes upon US Patent 6,665,797 for “Internet/Remote User Identity Verification.”

Everyone knows that iTunes allows a user to play purchased music tracks to up to 5 computers, without repaying the money, under the condition that the computers are registered. The computer registration involves a process of identity verification in which a user is required to key in into the computer the correct Apple ID and password he used to purchase the song.
This is certainly a patentable technology. If iTunes does not patent it, there must be a very good reason for them not to do so- someone else has patented this.
Pat-rights named the technology as “Internet/Remote User Identity Verification”, earned a US Patent 6,665,797 therefor, and world-wide patents pending. In the end of 2003, Apple indicated in its communication to Pat-rights that Apple had no interested in licensing it and maintain silence ever since then.
“We have kept a close watch on every development of iTunes. We believe this is willful infringement”, said CEO of Pat-rights, Mr. Philip H.K. Tse,”We lose face. Apple shows no respect to us and our patent rights!”
The US Patent 6,665,797 is written in plain English, even a layman can read and understand it. “They are playing unfair to their customers, not us.” Mr. Tse further commented.
According to US Law, any willful infringement found by a court can result in injunction as well as treble damages. If an injunction is granted, then Apple?s customer will not be able to enjoy their music tracks as free as they have been.
“We know that other internet music shops are not making money,” Mr. Tse further noted, “but we are considering seriously offering one of them an exclusive license.”
Pat-rights is going to launch a series of legal actions against iTunes. The first one will be a formal notification issued by Pat-rights’ Attorney, Mr. Joseph J. Zito, demanding Apple a reasonable license fee, 12% of gross sales of iTunes music tracks and iPods, and Apple will have to accept it in 21 days. Mr. Zito is a well-experienced patent counsel, and has actively engaged in intellectual property litigation in District and Appellate Courts.

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