updated 08:20 am EDT, Wed August 17, 2005
Apple named in DRM lawsuit
Five of the top companies in the online music industry--including Apple and Sony--are being sued because their music stores and DRM technology . As a royalty, the company was seeking 12-percent of Apple's profits on the revenues generated from iTunes and iPod sales, and had given Apple until the end of March to respond.
The DRM technique relies heavily on a "psychological barrier" to discourage users from sharing music by embedding personal information into each music file the user purchases. Demanding a trial by jury, Tse is seeking both actual and statutory damages resulting from the infringement, following unsuccessful negotiations with each company--including Apple--for royalties payments.