News and Events for Attorneys and Executives

Apple Facing Trial for Music Downloading Restrictions

Earphones around EarthApple will try to defend against allegations that it violated antitrust laws by trying to restrict music downloads for iPods to its iTunes store. Jury selection in the federal trial will begin Nov. 19, reports the San Jose Mercury News.

While Apple abandoned the restrictions in question years ago, the stakes are still high — damages could exceed $1 billion if antitrust violations are proven, and an adverse verdict would amount to a black eye for the company’s past business practices, reports the News.

It continued, “The antitrust case was first filed in 2005, alleging Apple created a monopoly by blocking iPod owners from going to competitors for their music. The central issue involved Apple’s ‘FairPlay,’ a so-called digital rights management system, or DRM, that ensured iPod owners could only download songs from the iTunes store.”

Read the story.