This should be a golden time for the digital music service Spotify and yet after only two weeks of the US launch the firm are being sued for patent infringement by software developer PacketVideo. Basically, what PacketVideo are saying is that a patent they registered in 1997 that covers the distribution of digital music, by using this technology Spotify has been able to create a cloud based digital music service.
According to a statement put out by Spotify;
In just under three years, Spotify has become more popular than any other music service of its kind. This success is, in large part, due to our own highly innovative, proprietary hybrid technology that incorporates peer-to-peer technology. The result is what we humbly believe to be a better music experience-lightning fast, dead simple and really social. PacketVideo is claiming that by distributing music over the Internet, Spotify (and by inference, any other similar digital music service) has infringed one of the patents that has previously been acquired by PacketVideo. Spotify is strongly contesting PacketVideo’s claim.