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Apple sued for monopolizing MP3 music player market
By siliconindia
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Friday, 17 October 2008, 16:28 IST
California: After iPhone's lackluster performance in Asian markets, Apple is taking yet another beating. Luxpro, a Taiwanese electronics company has sued Apple on counts including contract interference, attempted monopolization of the MP3 player market, unfair competition, and commercial disparagement, reported InformationWeek.
The lawsuit, alleging that Apple has been illegally pressuring Luxpro's retail partners to stop selling Luxpro music players, in an attempt to monopolize the MP3 music player market, is a continuation of a long-running legal battle between the two firms.
Founded in 2002 December, Luxpro launched its EZ Share MP3 player in January 2004 and introduced subsequent models after that. In March, 2005, the company introduced its Super Shuffle MP3 player, a device similarity to Apple's iPod Shuffle, in terms of looks and name, prompting Apple to seek an injunction against Luxpro. As a German court granted the injunction, Luxpro responded by renaming its Super Shuffle to 'Super Tangent.'
In the next month, says the complaint, Apple "engaged a third-party to purchase a Super Tangent from LuxPro" and "surreptitiously obtained two of Luxpro's proprietary price lists." Apple then sent threatening letters to Luxpro demanding that it withdraw its MP3 players from the market, it adds.
In July, 2005, Apple asked the Shihlin District Court in Taipei, Taiwan, for an injunction that prohibited Luxpro from making, distributing, or selling any MP3 player. The injunction was granted a month later, but after a long legal battle, Taiwan's High Court reversed the injunction on an appeal. Apple then appealed to Taiwan's Supreme Court and lost.
The complaint that Luxpro filed does not name a specific damage amount; it seeks damages to be determined by a jury trial, plus attorneys' fees.
And it describes a far-reaching effort by Apple to intimidate and pressure Luxpro's suppliers and partners as a means to keep Luxpro's MP3 players off the market.