Digital Journal — It’s hard out here for an iPod. Being the top dog means facing heat from competitors, and now Apple is weathering a storm of Biblical proportions: Creative, a maker of portable media players, is suing Apple in U.S. federal court for patent infringement. Creative filed a complaint with the U.S. International Trade Commission Monday.
Singapore-based Creative — a distant No. 2 in the MP3 player race — accused Apple of violating the so-called Zen patent which covers the software menus users navigate to find and play music. Several Creative engineers working in California filed the patent application on January 5, 2001, 10 months before Apple launched its iPod.
Around the same time that Creative filed its patent application, reps from Apple (including CEO Steve Jobs) met with Creative to talk about how they could work together. At that time, Apple reportedly asked to license the technology from Creative, suggesting it could invest in a possible spinoff of the music player. Creative declined both proposals, according to the lawsuit.
Now, in a complaint filed with the U.S. International Trade Commission, Creative is asking the agency to investigate whether Apple has violated import laws by selling iPod and iPod Nano music players that infringe on Creative’s Zen patent.
Creative is seeking an injunction and damages, essentially demanding Apple stop selling their top-selling products. An Apple representative has not yet responded to the allegation.
Recently, Creative has evolved into a ferocious company vigorously working to protect intellectual property. Creative CEO Sim Wong Hoo told the BBC in December that the company would “aggressively pursue” those that infringed on its patent.
So is Creative a righteous David trying to topple Goliath, or just a struggling competitor sucking on some sour grapes? Creative could be following the credo, “If you can’t compete, sue,” a move that could hurt the tech sector since it sounds more like complaining than innovating.
Most importantly, Creative’s lawsuit could mimic “The Boy Who Cried Wolf” story: If judges regard these patent-infringement cases as mere frivolity, once a true infringement comes before the court, it won’t be taken seriously. If things take a wrong turn, Creative’s lawsuit could actually help Apple dominate even further.
And it’s not like this flak is new for Jobs. Other companies have sought a cut of Apple’s revenues from its media players and iTunes software. Hong-Kong-based Pat-Rights claimed Apple’s digital rights management technology infringes on its intellectual property. Contois Music & Technology, a Vermont company, filed a suit in July 2005, alleging that the interface for iTunes infringes on its patent.
But none of these companies had the clout of a competitor like Creative, whose Zen Vision: M received “The Best of CES” award recently. While Creative’s media players are not selling as briskly as Apple’s iPods, Jobs must still be worried that his company has come under criticism once again.
This will be an interesting lawsuit to follow, as it could spell out the future of marketplace competition — will it be decided in stores or in courts?
