A small New York company has sued Microsoft, charging that the software giant's new music download service in Europe infringes on a patent it owns nearly 20 years old.
E-Data, a Long Island-based company that's focused largely on licensing its patents, contends that Microsoft, Internet service provider Tiscali and digital music company OD2 are collectively trespassing on its rights with their new music download services, recently released in several European countries. E-Data is asking that the services, variously called MSN Music Club and Tiscali Music Club, be shut down until a patent licensing deal is worked out.
"(Those companies) are offering downloads of music over the Internet, which can be downloaded onto CDs for a fee," said E-Data spokesman Gerald Angowitz. "We believe that violates our patent." The little-known company's claims could ultimately affect businesses on both sides of the Atlantic, as music services from MusicMatch to Sony rush to emulate the initial success of Apple Computer's iTunes music store. With razor-thin margins on digital sales of songs, any unexpected patent licenses could prove a headache for these companies.
News source: C|Net News.com
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