Musicrypt Suing Promo Only/Destiny In $15 Mil Patent Suit
June 12, 2006 at 11:47 AM (PT)
Digital music delivery company MUSICRYPT has filed a $15 million patent infringement lawsuit against chief rival and US market leader in the space, PROMO ONLY and technology partner DESTINY MEDIA TECHNOLOGIES.
MUSICRYPT alleges that DESTINY MEDIA and PROMO ONLY’s systems infringe its patent and that the validation process for access as claimed in MUSICRYPT’s patent is not limited to biometrics, (see report from Stockhouse.com), claiming that username/password authentication is proprietary to MUSICRYPT.
MUSICRYPT President/CEO JOHN HEAVEN said, "Protection of intellectual property rights is essential to the functioning of a modern society. Our customers in the music and broadcast industries have a thorough understanding of the necessity to respect these rights. This action seeks to protect MUSICRYPT’s valuable technology and compensate our stakeholders for what MUSICRYPT believes is the deliberate and ongoing contravention of these. It is not our intent to litigate this by press release but rather by proper judicial process, which we are pursuing vigorously."
PROMO ONLY President JIM ROBINSON told ALL ACCESS, "This is a frivolous matter. If what they say they have were true, they would be suing MICROSOFT and APPLE and not their direct competitor. Also they make it look like they are suing us for their stockholder when the truth is that this it is a counter suit to DESTINY's law suit. We don't even use Biometrics, so what's the point of this?
ROBINSON added, "MUSICRYPT is notorius for slanted press releases. We are contracted partners with MEDIABASE, yet in previous press releases they insuate they are by calling themsleves a 'trusted partner with CLEAR CHANNEL.' Then they name us in a countersuit that we didn't even initiate, our technology partner, DESTINY, did."
Meanwhile, CLEAR CHANNEL Exec. VP/Distribution Development JEFF LITTLEJOHN has previously stated, "PROMO ONLY MPE is the preferred service for digital delivery to CLEAR CHANNEL. It has the music and features that our stations need including integration into PROPHET SYSTEMS. PROMO ONLY MPE has passed rigorous testing and has our official endorsement."