Attorney on Apple: ‘When you are No. 1, you have a bull’s-eye on your back’

“For Apple Computer, life at the top of the digital music heap is not all it is cracked up to be. The company maintains upwards of 60% market share in MP3 player sales [worldwide] and in February crossed the 1 billion songs plateau for sales at its iTunes Music Store. But as its power grows, so grows the list of potential threats to its dominance,” Brian Garrity writes for Billboard. “Nowhere is the challenge that Apple faces greater than in the mobile music arena. McGuire points out that Apple must protect its existing iPod/iTunes business while at the same time figuring out how to transition to new products and services for the cell phone.”

“Determined to make that process as difficult as possible is Microsoft, which is seeding its Windows Media technology standard with a host of wireless device manufacturers and carrier services,” Garrity writes. “Motorola announced at the 3GSM conference February 13 that it will support Microsoft’s Windows Media technology in its upcoming devices. The deal seemingly undercuts a similar pact Motorola inked with Apple a year ago. It was Motorola’s reasoning for Microsoft support that underscores Apple’s challenges: Company executives say wireless operators want devices that support Microsoft’s technology because these units will let them offer their own music download services, while Apple’s technology will not.”

“If worrying about the developing mobile music sector is not enough, Apple has to contend with myriad lawsuits alleging everything from patent infringement to antitrust violations to liability for hearing loss,” Garrity writes. “Plenty of press scrutiny may also result from a claim by Thomas Slattery in the U.S. District Court of Northern California that Apple engages in anticompetitive practices by not licensing its Fair Play DRM (digital rights management) technology to third parties… Among the cases that will be closely followed: Santa Rosa, Calif.-based in January filed patent infringement claims against Apple’s allegedly unauthorised use of ‘core audio and video functionality for Apple’s iTunes and the iPod.’ Last year Microsoft settled patent infringement and antitrust claims made by Burst by reportedly paying $60 million and licensing the same Burst patents listed in the complaint against Apple. ‘Many of these claims are the type of claims any company faces when it has a successful product or service,’ says Bobby Rosenbloum, an attorney and shareholder in the entertainment practice at Greenberg Traurig. ‘When you are No. 1, you have a bull’s-eye on your back.'”

Full article here.

[Thanks to MacDailyNews Reader “Sailfish” for the heads up.]

Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
MacBook Pro. The first Mac notebook built upon Intel Core Duo with iLife ’06, Front Row and built-in iSight. Starting at $1999. Free shipping.
iMac. Twice as amazing — Intel Core Duo, iLife ’06, Front Row media experience, Apple Remote, built-in iSight. Starting at $1299. Free shipping.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.

Related MacDailyNews articles:
Consumer group files lawsuit, says iPod nano ‘defective,’ claims Apple cannot charge for replacement – February 10, 2006
The useless iPod ‘potential for hearing loss’ lawsuit – February 05, 2006
Report: Apple iPod hearing loss lawsuit headed by Microsoft retained trial lawyer – February 02, 2006 plans countersuit against Apple alleging iPod, iTunes patent infringement – January 06, 2006
Apple Computer sues Burst after negotiations over iTunes, iPod patent licenses breakdown – January 06, 2006
Baton Rouge woman files sixth iPod nano ‘scratches’ class-action lawsuit; Apple seeks to consolidate – December 27, 2005
Pro-Microsoft attorney involved in anti-Apple iPod nano lawsuit – October 25, 2005
Apple, four other companies named in new DRM lawsuit – August 17, 2005



    Freida sits at her breakfast table, sipping tea, munching Ryvita with Jarlsberg slices.

    Her phone rings, and she answers it.

    (VO) Adelheid: Hi Frieda. How are you?

    Freida: Hey, Adel. Good, how are you?

    (VO) Adelheid: I’m good. Hang on a sec will ya?

    Freida: OK.

    Freida hears muffled groaning in her handset.

    (VO) Adalheid: Oohhhhhhh, Hoohhhh, Hooh. Oh, my god. Oh. Oh. Ohhh yeah. Okay. Okay. <Sigh>Okay, good.

    Frieda becomes concerned.

    Frieda: Are you okay, Adel?

    (VO) Adalheid: Oh, yeah. I’m okay.

    Frieda: What’s going on then?


    Adalheid: Oh sorry. I’m at Burger King taking a dump.

    (VO): Click

    Adalheid: Freida? Hello?!

  2. I just got back, I was washing my hands ” width=”19″ height=”19″ alt=”tongue laugh” style=”border:0;” />

    Sorry for the speelig msitakes?

    And better to carry your ‘manpurse’ with your Nokia mobile, Handspring, GameBoy Advanced SP AND an iPod (with video) – than to be stranded somewhere with a dead cell/MP3player, no?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.