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Burst.com iPod Patent

San Francisco, CA: (Nov-21-07) Burst.com brought a patent infringement lawsuit against Apple Inc., alleging that it infringed patents that the two companies agreed to share. The lawsuit, filed in 2004, claimed that some of Burst.com's media patents formed the basis of the iPod. Apple launched a preemptive lawsuit against Burst in the District Court of Northern California in January of 2006 to try to invalidate the patents, which in turn, resulted in the streaming media firm countersuing. In April 2006, Burst sued the Cupertino, California-based firm of copyright infringement by refusing to license four key patents it says are violated by the iPod and iTunes.

As part of a settlement reached, Apple Inc. made a move to resolve the long standing dispute, by agreeing to pay a $10 million lump sum in exchange for protection from current and future lawsuits. Sources stated that discounting legal fees and other expenses associated with the April 2006 complaint, Burst.com stands to collect approximately $4.6 million. In exchange, Apple will have the right to use most of Burst.com's patent portfolio, much of which covers the process of compressing and sending data across a network. [APPLE INSIDER: IPOD PATENT]


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Published on Nov-25-07


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