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Posted on 02/08/2008 7:52:19 PM PST by Swordmaker
Apple's fiscal first-quarter 2008 10-Q filing with the Securities and Exchange Commission revealed that the company had one new lawsuit filed against it in the last part of 2007, and settled another four in the same time.
New Lawsuits
Somers v. Apple Inc. - Filed December 31, 2007, this lawsuit alleges various claims including unlawful tying of iTunes Store purchases to the iPod and vice versa. It is nearly identical to other lawsuits now collectively referred to as The Apple iPod iTunes Antitrust Litigation and the recently filed (and now settled) Black v. Apple Inc.. Apple's response is not yet due.
Settled or Dismissed
Lawsuits that were settled or dismissed as revealed in the fiscal first-quarter 10-K filing include:
Apple Computer, Inc. v. Burst.com, Inc. - filed on January 4, 2006, this patent infringement lawsuit brought against Apple by Burst.com was settled late last year, ahead of trial which had been scheduled for February 28, 2008. In a departure from the norm, the settlement included an agreement divulging the details of the terms, which involved a $10 million payment from Apple to Burst.com to license its technologies.European Commission Investigation - this investigation stems from inconsistent pricing for iTunes tracks in the United Kingdom compared to other Eurozone countries. Apple has said the pricing discrepancy is the fault of the record labels. A hearing on the Statements of Objections took place September 19, 2007. On January 8, 2008, Apple announced it planned to equalize the price of iTunes Store content throughout Europe within six months. That same day, the Commission announced its intent to close the investigation.
Intertainer, Inc. v. Apple Computer, Inc. et al. - filed December 29, 2006, this lawsuit alleges that Apple is infringing U.S. patent number 6,925,469, "Digital Entertainment Service Platform". Apple answered the complaint February 21, 2007 denying all material allegations and asserting numerous affirmative defenses. A settlement has been reached but details were not disclosed.
Black v. Apple Inc. - this class action complaint, filed on August 27, 2007, is similar to other iPod/iTunes monopoly lawsuits Apple is facing (now collectively referred to as The Apple iPod iTunes Antitrust Litigation). On November 19, 2007, both parties entered into a Stipulation for Voluntary Dismissal and the Court dismissed all claims with prejudice on November 20, 2007, concluding the lawsuit.
Updates
Bader v. Anderson, et al. - filed in May 2005, the lawsuit alleged Apple failed to disclose certain information relating to the Apple Computer, Inc. Performance Bonus Plan; the case was dismissed with prejudice in favor of Apple on October 25, 2007. On November 26, 2007 the plaintiff filed a notice of appeal.Birdsong v. Apple Computer, Inc - this lawsuit claims Apple's iPod is inherently defective because it can cause noise-induced hearing loss (like all music devices). The court held a motion to dismiss this lawsuit on June 4, 2007 and issued an order on December 14, 2007 granting Apple's motion, but allowed the plaintiff to submit an amended complaint, which they did on January 11, 2008. Apple's response to the amended complaint is not yet due.
Branning et al. v. Apple Computer, Inc. - filed in February 2005, this lawsuit alleges Apple was selling used computers as new and was failing to honor warranties. The Court denied Apple's motion for judgement on the pleadings on November 30, 2007. The case continues...
Harvey v. Apple, Inc. - filed August 6, 2007, this lawsuit alleges infringement of two U.S. patents regarding "Recharger for use with a portable electronic device and which includes a proximally located light emitting device" and "Recharger for use with a portable electronic device and which includes a connector terminus for communicating with rechargeable batteries contained within the device." A Markman hearing is set for October 28, 2009, and the trial has been scheduled for April 5, 2010.
In re Apple Computer, Inc. Derivative Litigation (Federal Action) - the lawsuit was filed by shareholders after it was disclosed that Apple had discovered irregularities in its stock option grants. Apple filed a motion to dismiss the suit on April 20, 2007, which was heard on September 7, 2007 and granted by the court on November 19, 2007, but with leave to amend. The plaintiffs field an amended complaint December 19, 2007 and Apple filed a motion to dismiss the amended complaint on January 25, 2008.
Mediostream, Inc. v. Acer America Corp. et al. - filed August 28, 2007, against Acer, Dell, Gateway, and Apple, this lawsuit alleges infringement of a U.S. patent entitled "Method and System for Direct Recording of Video Information onto a Disk Medium." Apple filed its answer to the complaint on January 25, 2008, denying all material allegations. Apple also filed a motion to transfer the case to the Northern District of California.
OPTi Inc. v. Apple Inc. - filed on January 16, 2007, this lawsuit alleges infringement of three U.S. patents related to "Predicative Snooping of Cache Memory for Master-Initiated Accesses." Apple has denied all material allegations and asserted counterclaims for declaratory judgment of non-infringement and invalidity. The Markman hearing is set for November 26, 2008, and trial has been scheduled for April 6, 2009.
Quantum Technology Management, Ltd. v. Apple Computer, Inc. - filed December 21, 2005, this lawsuit alleges Apple has infringed upon U.S. Patent number 5,730,165, "Time Domain Capacitive Field Detector". A Markman hearing was held May 16, 2007, and on June 7, 2007, the Court issued a claim construction ruling and an order invalidating six of Qunatum's patent claims in response to Apple's motion for a partial summary judgement of invalidity. On November 28, 2007, Apple filed a motion for summary judgment for non-infringement and invalidity. On December 27, 2007, Quantum filed a motion for summary judgment for infringement on one patent claim. Trial has been scheduled for May 19, 2008.
SP Technologies LLC v. Apple Inc. - filed August 2, 2007 this is another lawsuit alleging patent infringement. The patent in question is entitled "Method and Medium for Computer Readable Keyboard Display Incapable of User Termination." Apple filed its response on October 23, 2007, and also asserted counterclaims for declaratory judgment of non-infringement and invalidity. A Markman hearing has been scheduled for September 18, 2008, and trial is set for June 1, 2009.
St-Germain v. Apple Canada, Inc. - this lawsuit stems from an "iPod tax" Apple collected as a result of the Canadian Private Copying Levy that was later overturned by Canadian courts. A trial was conducted October 15 and 16, 2007, and the Court ruled despite its best-intention efforts, Apple must pay the amount claimed to the 20,000 persons who purchased an iPod in Quebec between December 12, 2003 and December 14, 2004. Apple must submit a statement of account showing how much the Canadian Private Copying Collective received and the amount it has paid to class members already. Both parties must submit a further briefing regarding the collective recovery award by February 23, 2008.
Texas MP3 Technologies Ltd v. Apple Inc. et al. - filed against Apple and other defendants on February 16, 2007 this lawsuit alleges infringement of U.S. Patent No. 7,065,417 entitled "MPEG Portable Sound Reproducing System and A Reproducing Method Thereof." Texas MP3 Technologies filed an amended complaint on August 1, 2007, adding the iPhone as an accused device. Apple filed its answer August 20, 2007, denying all material allegations. The Markman hearing has been scheduled for March 12, 2009, and trial is set for July 6, 2009.
Vogel v. Jobs et al. - Apple filed a motion to dismiss this suit on June 8, 2007 that was heard on September 7, 2007. The case is related to improper backdating of stock option grants, similar to other suits. On November 14, 2007, the Court dismissed all securities claims with prejudice. On December 14, 2007, the plaintiff filed a motion for leave to file a first amended consolidated class action complaint; on January 23, 2008, Apple filed its opposition to this.
No Notable Updates
There has been no significant news concerning the following cases:
Gordon v. Apple Computer, Inc. - (defective 65W power adapters for iBook/PowerBook G4 systems)Honeywell International, Inc., et al. v. Apple Computer, Inc., et al. - (patent infringement)
In re Apple Computer, Inc. Derivative Litigation (State Action) - (similar to the Federal Action, relates to irregularities in Apple's stock option grants)
In re Apple iPod Nano Products Liability Litigation - (first-gen iPod nano scratches too easily)
Individual Networks, LLC v. Apple, Inc.- (patent infringement "Method and System for Providing a Customized Media List")
Macadam v. Apple Computer, Inc.; Santos v. Apple Computer, Inc. - (reseller complaint regarding breach of contract, fraud, negligent and intentional interference, etc.)
Saito Shigeru Kenchiku Kenkyusho v. iPod; Apple Japan Inc. v. Shigeru Saito Architecture Institute - (patent infringement and counter Declaratory Judgment)
The Apple iPod iTunes Antitrust Litigation - (tying sales of iPods to the iTunes Store and vice versa)
Tse v. Apple Computer, Inc. et al. - (patent infringement)
Union Federale des Consummateurs-Que Choisir v. Apple Computer France S.a.r.l. and iTunes S.a.r.l. - (tying sales of iPods to the iTunes Store and vice versa)
Vitt v. Apple Computer, Inc. - (iBook G4 boards fail at an abnormally high rate)
Apple should have Bill Clinton, not Al Gore, on the board — these nuisance lawsuits would decline in number as the plaintiffs died in “accidents”.
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