Remember Spotify? Well, of course you do. The music streaming service just arrived in the states after great success across the pond. The minute Spotify hit the states, people from all walks of life signed up for the service – some were even lucky enough to gain free accounts.
The revolutionary music service proved to be all that it was originally hyped up to be. Now Spotify is being sued by a company called PacketVideo. Never heard of them? Well, that’s because PacketVideo never really made anything of itself. The company was once interested in streaming music electronically, though it never got off the ground due to a number of hurdles. With Spotify enjoying global success, PacketVideo wants a piece of the pie.
PacketVideo claims that Spotify is treading on its patented toes. The funny thing is that PacketVideo never created the patent that it is now trying to protect. Instead, the company purchased a patent with this headline “device for the distribution of music information in digital form.” Unfortunately, Spotify falls neatly under this very broad term, which is exactly what PacketVideo was hoping for.
Seemingly, PacketVideo purchased the aforementioned patent when Spotify began gaining followers in Europe. Now that Spotify has officially arrived, PacketVideo wants to cash in. The problem is that PacketVideo’s purchased patent does not just apply to Spotify. Instead, this patent can be applied to any streaming music service. So, why isn’t PacketVideo suing other companies as well?
How Spotify Will Respond
There’s no word yet as to how Spotify will respond to the new lawsuit. However, one can assume that the company will just pay whatever PacketVideo is asking for. Or, they made decide to take the sneaky company to court. After all, it won’t be that hard to prove that PacketVideo was just waiting for Spotify to come to the states. Then again, there’s nothing wrong with this business tactic.
Even though collecting patents with the hope that someone will come too close to the definition of a patent is slimy, sleazy, and slick, it’s not an illegal practice. In fact, this is precisely why people buy patents to begin with. The fact of the matter is that PacketVideo owns the patent, and Spotify is infringing upon it – however silly it may seem.
The End of Spotify?
So, will Spotify fade quietly into the night? Not likely. The company is enjoying a great deal of success within the U.S. It’s also hard to imagine that PacketVideo will be the only company seeking some of the Spotify limelight. No, it looks like Spotify is here to stay -- especially since business projections place Spotify in front of iTunes. If there’s a company that can take down the Apple music giant, it’s definitely Spotify.
Try as companies like PacketVideo might, Spotify is one tough cookie to crack. You can expect Spotify to make some kind of settlement or end up in court over the next few months. But it’s highly unlikely that companies like PacketVideo will wind up chasing Spotify from the states altogether.