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Apple iTunes Plays Monopoly With iPods; Rolls Dice With Lawsuits

According to reports Apple is facing several lawsuits including federal lawsuits which where just disclosed on Friday.

According to reports Apple is facing several lawsuits including federal lawsuits which where just disclosed on Friday. One of the lawsuits state that Apple Computer Inc. is monopolizing the iPod players by linking iTunes music and video sales to it and that Apple’s copy-protection system prevents iTunes music and videos from being played on competing devices. Songs which are not bought on iTunes cannot be easily played on the iPods which leaves consumers with only using iTunes for their music and video buying needs. On Dec. 20, the court denied Apple’s motion to dismiss the complaint on the case, filed July 21 in the U.S. District Court for the Northern District of California.

Apple is stated to control about 75% of the market for downloaded music, but this may change in 2007 for the company. Analysts predict that rival services will start to consume Apple’s portion.

The company along with some of its current and former officers are also facing lawsuits for a number of security class action lawsuits including false financial statements and backdated stock option grants which failed to properly account for those grants. A company named PhatRat Technology filed a lawsuit Oct. 24 in the U.S. District Court for the District of Colorado alleging patent infringement on a Nike-iPod product. The company’s response to the complaint is stated not to be due just yet.

What will the future hold for Apple iTunes with the raising number of lawsuits that it is being approached with? Even though shares rose 4.9 percent on Friday, competion may give Apple iTune’s a run for it’s money in the new year.

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