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The
Battle Over Online Music
by
Jennifer
Sullivan
Sightsound.com,
a tiny company that owns a patent for
selling music through online downloads,
is demanding that other music companies
pay licensing fees or face
patent-infringement lawsuits.
The
Mt. Lebanon, Pennsylvania, company has
already sent formal warnings to some
music sites, including MP3.com,
one of the main hubs for downloading
music files.
"We're
highly confident in the validity of our
intellectual property," said Scott
Sander, chief executive at
Sightsound.com. "We have two US
patents that control the sale of
downloadable music. We're not trying to
slow [the Internet music industry] down.
We're trying to speed it up."
But
some companies said they'll challenge
Sightsound.com's patents and put up a
serious fight before paying licensing
fees.
The
brewing fight once again raises the
question of how competent the US Patent
and Trademark Office is in handing out
exclusive rights to basic technologies
underlying the Internet. If
Sightsound.com's patents are upheld in
court, it could exact a toll from the
entire online music industry.
That
prospect hasn't been lost on the
traditional music industry. The Recording
Industry Association of America, or RIAA,
no friend to the online music movement,
said Sightsound.com very likely will have
to fight to get its money.
"At
this point, the validity of these patents
is almost certain to be challenged,"
said an RIAA spokeswoman. She declined to
say whether the association would file
suit.
Sightsound.com
creates Web sites for other companies
that want to sell music online. It claims
its patents cover the idea of selling
audio and video files through downloads.
On Wednesday, Sightsound.com sent cease
and desist letters
to four Internet music companies
including MP3.com, Platinum Entertainment
(PTET),
GoodNoise (GDNO),
and Amplified.com.
Christopher
Reese, vice president and general counsel
for Sightsound.com, asked the sites to
either pay a 1 percent royalty on all
revenue from online music sales, or to
"immediately cease and desist
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