Spotify receives patent infringement lawsuit

Spotify has received a patent infringement lawsuit, less than two weeks after having debuted in the United States. The San Diego-based company PacketVideo has filed the lawsuit over a patent that dates back to 1995. Their lawsuit targets Spotify both in the United States and in Europe, as the patents relate to how a music streaming service could work. As The Telegraph reports, Spotify has been strongly contesting the lawsuits, which were filed in California and the Netherlands. PacketVideo claims it has already attempted to "amicably resolve its concerns".

PacketVideo acquired the patents in 2007, after having purchased the Swiss company SDC. The patents describe technical elements used by many different music streaming services, such as the following:

"the capability to interact via the communications network in order to order and transmit selectively chosen music information”.

This patent seems to have extremely broad meanings. Rulings in both the United States and Europe will be worth paying attention to. If PacketVideo wins it could be massively damaging for Spotify, as well as other music streaming services. The claim comes less than two weeks after Spotify released in the United States. The service has been praised in both the United States and Europe, but depending on how things go with the lawsuit, its future might not be too easily determined. Spotify has made an official statement on the subject, which can be read below:

"PacketVideo is claiming that by distributing music over the internet, Spotify (and by inference any other similar digital music service) has infringed one of the patents that has previously been acquired by PacketVideo."

When rejecting the claims made by PacketVideo, Spotify attributed its success to the following:

“highly innovative, proprietary hybrid technology that incorporates peer-to-peer technology”.

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I think if a company tries to sue another company for patent infringement and they have no products that use the tech that the patent describes at Market or in development then they should be fined for wasting everyone's time. Then again one would assume alot of money going to the courts comes from these stupid lawsuits, probably why the US lets ppl sue ppl over anything

Actually one might think a patent was to ensure that no one stole your idea... As if the guys in Spotify ever got any idea from PacketVideo... LMFAO!

Something is seriously wrong with the US patent system. It's like when people have touched screens for ages, and Apple files a patent for using two fingers...(No trolling intended).

And just one more thing... " the communications network"? Is that supposed to be an ancient nickname for the internet?

I believe in the UK we would call this supposed "lawsuit" a 'punt'. Prior art mother ****ers. Real did this in 88 (as one example).

PS. How the **** was this patent awarded?

So let me get this straight, if you have an idea that isn't feasible with todays tech, but you patented it,and 5-6 years from now when we are more technically advanced, a company comes in and uses your idea to make millions of dollars,you're telling me you're gonna sit there and say "hmmm,im no patent troll". Bull Sh*t. These guys had the foresight,and now they should be compensated. Just because spotify is popular doesn't make the original patent holder insignificant. That's why we have patents. If we didn't, then the little guy will always lose,because the little guy doesn't have the resources to compete. If I came up with an amazing idea,and i started rolling out the product into the market. Don't you think a big company would come in,copy my product,but would sell it for 1/10 of the price? They have the resources and capacity to destroy me. So before you people scream patent troll, get educated on the issue.

vcfan said,
So let me get this straight, if you have an idea that isn't feasible with todays tech, but you patented it,and 5-6 years from now when we are more technically advanced, a company comes in and uses your idea to make millions of dollars,you're telling me you're gonna sit there and say "hmmm,im no patent troll". Bull Sh*t. These guys had the foresight,and now they should be compensated. Just because spotify is popular doesn't make the original patent holder insignificant. That's why we have patents. If we didn't, then the little guy will always lose,because the little guy doesn't have the resources to compete. If I came up with an amazing idea,and i started rolling out the product into the market. Don't you think a big company would come in,copy my product,but would sell it for 1/10 of the price? They have the resources and capacity to destroy me. So before you people scream patent troll, get educated on the issue.

They made up some vague idea for a patent, and sat on their asses and did nothing. Their patent applies to "Sending a song over a network".

Should I pay royalties everytime I stream music from my PC to my Xbox? Companies that patent a vague idea and then sit and do nothing should have patents stripped from them.

Im going to patent "Transporting matter via Subspace Stream between multiple nodes". Bang, Ive just patented the whole idea of teleportation. When someone does eventually put all the work, manhours and money into getting the idea working, Im going to roll in with no effort and sue them into oblivion.

Also. Their patent is "the capability to interact via the communications network in order to order and transmit selectively chosen music information”

Does that not mean I violate that patent when I stream music over my network to my Xbox?

I believe they should set you a time limit, to come up with a working design of the thing you have patented.

If you dont, you lose your patent.

American patent system is flawed and a huge scam, as always.
Spotify should just leave America and stick to Europe as they used to be, safe heaven.

So will the record labels stick up for Spotiify and their legal music service? No chance. When Spotify dies from these idiot lawsuits and people start going back to their "ways" of downloading music though, they'll moan until the cows come home.

This is so stupid.. I hate when this crap comes up its like these lame companies file patents so in the future others can slip up and have to pay. **** PacketVideo Spotify is awesome and I hope they shEit all over them!

Their lawsuit targets Spotify both in the United States and in Europe, as the patents relate to how a music streaming service could work

Right.. So spotify and others have actual working products, PacketVideo only describe how a service could work. Crazy. The first law of Patents surly must be that you have a working product, not just a idea how a product should work.

It should be like Race car/WRC rules, to have a racing car you must have so many cars homologated, a patent lawsuit should only be allowed if you;ve produced a product or service with it within a certain time frame, or like trademark laws, you lose that patent.

evo_spook said,
Welcome to USA

This was exactly my thought. These guys are basically just suing because they aren't smart enough to create something as great as Spotify. US patent reform cannot come soon enough.