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Intouch Group Files Patent Infringement Lawsuit Against Five Online Companies

Strategic Insights

— 1 min read

Intouch Group, Inc., a privately held company providing music retailers with samples of recorded music through the Internet and in-store kiosks, has filed a lawsuit against five online companies, including Amazon.com, alleging patent infringement. The lawsuit claims that the companies have infringed on two of Intouch's patents covering its proprietary method of delivering music samples through kiosks and the Internet. Intouch says that it has been providing music retailers with kiosk and Internet-based music previewing, customer profiling, and interactive advertising for ten years.

Key Takeaways:

  • Intouch Group filed a lawsuit against five online companies, including Amazon.com, on March 31, alleging patent infringement.
  • The lawsuit claims that the companies have infringed on two of Intouch's patents covering its proprietary method of delivering music samples through kiosks and the Internet.
  • Intouch has been providing music retailers with kiosk and Internet-based music previewing, customer profiling, and interactive advertising for ten years.
  • The company says that "perhaps hundreds of others" are infringing on its patents, and has contacted about 30 companies regarding their infringing activities.
  • Intouch spent over $100,000 to produce claim charts detailing the claimed infringing activities of the other companies, including Amazon.com.
  • The company is asking each of the defendant companies to provide an accounting of their use of music samples via the Internet.
  • Joshua Kaplan, chairman and CEO of Intouch, said that the infringement has been financially damaging, including loss of revenue and loss of market share during a critical period in the development of the Internet.

Statistics:

  • Intouch has been providing music retailers with kiosk and Internet-based music previewing, customer profiling, and interactive advertising for 10 years.
  • The company spent over $100,000 to produce claim charts detailing the claimed infringing activities of the other companies.
  • About one-half of the 30 companies contacted by Intouch responded to their letter, and some asked for substantiation of the claim.

Sources:

  • Intouch Group Inc., http://www.Intouchgroup.com
  • Newsbytes.com, http://www.newsbytes.com (April 14, 2000)
  • US District Court for the Northern District of California, San Francisco
  • NASDAQ: AMZN, Amazon.com International, Inc.
  • NASDAQ: LQID, Liquid Audio, Inc.
  • NYSE: TWX, Time Warner Inc.

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