Hong-Kong company wants 12 percent of iTunes profits

By Derek Sooman on
According to a post on the Pat-rights company Web site, a company is seeking 12 percent of all profits from iTunes and iPod sales, claiming it holds the patents to the DRM technology that governs the use of downloads through Apple Computer's online music service.

The computer registration process for iTunes relies on a process whereby a user is required to key into the computer the correct Apple ID and password he or she used to purchase the song. iTunes have apparently not made moves to patent this, apparently because a patent is already held for this technology. Seemingly, Apple has been in negotiations with Pat-rights for some time, at least according to Joseph J. Zito, the patent lawyer representing Pat-rights.

"We expect to be successful in licensing negotiations with Apple. They're a good company that understands intellectual-property rights, and we think they'll be reasonable. My client was first in touch with Apple during the months of December and January, so Apple has been aware of the issue for a couple of months." - Joseph J. Zito.

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