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Napster Facing Closure In Patent Dispute

by Glen Shapiro, LawAndTax-News.com, New York

14 January 2005

Despite its now legitimate status in the music download world, it emerged this week that Napster is facing more trouble in the courts, this time over an alleged patent violation.

SightSound Technologies holds a number of patents pertaining to the electronic sale of digital audio and video. Speaking to the US media, the firm's president and CEO, Scott Sander revealed that negotiations with Napster to finalize an audio license had been reaching their conclusion when Napster "demanded" that the licenses include video at no additional cost.

"This lawsuit is the regrettable outcome of a long process that could have been resolved amicably," he explained, adding that: "It is surprising that Napster has taken this road given that it seems to have been working to restore its brand value."

The initial motion alleging patent violation was filed in the US District Court for the Western District of Pennsylvania last October. A hearing has been scheduled for March 3 to examine SightSound's request that Napster's download service be closed down until a decision on the matter has been reached.

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