|Attorneys In Apple Antitrust Lawsuit
Must Find New Plaintiff By Tuesday
After slogging through years of legal tussles, the antitrust class action lawsuit against Apple Inc. encountered another hiccup this week when the presiding judge removed the last remaining “named plaintiff” from the suit. U.S. District Judge Yvonne Gonzalez Rogers scolded Marianna Rosen and her attorneys on Monday (Dec. 8) for not providing more complete information about the iPods Rosen had purchased. That move came after Apple lawyers successfully argued that the devices Rosen bought were not among those affected by the lawsuit.
Judge Rogers also quickly rejected Apple’s argument that the case should be dismissed because it’s too late to name a new plaintiff. She ordered the attorneys suing Apple to identify a new lead plaintiff by Tuesday (Dec. 16).
As reported by Billboard, a class-action suit must identify at least one person as a “named plaintiff” who suffered the losses or injuries alleged in the case. Rosen had previously said she purchased several iPods that qualified, but Apple attorneys produced evidence that those devices either had the wrong software or were purchased outside the time frame of the lawsuit. Rosen and her attorneys said she had purchased two other iPods in 2008, but Apple lawyers were able to produce records that showed they were purchased with a credit card issued to her husband’s law firm. Apple attorney William Isaacson argued that meant she was not legally the purchaser. A series of pretrial rulings had narrowed the case to covering just 19 months between September 2006 and March 2009.
Both sides estimate 8 million people bought iPods that were potentially covered by the lawsuit. The plaintiffs claim Apple used restrictive software that prevented iPods from playing music purchased from competitors of Apple’s iTunes store, and maintain that amounted to unfair competition. Apple was able to sell iPods at inflated prices because the software froze makers of competing devices out of the market, plaintiffs’ attorneys argue. They also say Apple is liable for $350 million, an amount that would be tripled if a jury finds the company violated federal antitrust rules.
|Lawyers: Apple Secretly Deleted
Competitors’ Downloads From iPods
Before the antitrust suit against Apple was delayed while attorneys search for a new lead plaintiff (see story, above), lawyers presented evidence that the company deleted music that some iPod owners had downloaded from competing music services without telling them. According to the Wall Street Journal, when a user who had downloaded music from a rival service in the period between 2007 and 2009 tried to sync an iPod to the user’s iTunes library, Apple would display an error message and instruct the user to restore the factory settings. Attorney Patrick Coughlin said that, when the user restored the settings, the music from rival services would disappear.
“You guys decided to give them the worst possible experience and blow up” a user’s music library, Coughlin said in U.S. District Court in Oakland.
Apple insists the moves were legitimate security measures, and Apple security director Augustin Farrugia testified the company did not offer a more detailed explanation because, “We don’t need to give users too much information. We don’t want to confuse users.” Farrugia told the court that hackers with names like “DVD Jon” and “Requiem” made Apple “very paranoid” about protecting iTunes. Updates that deleted non-Apple music files were intended to protect consumers from those system break-ins, he said, explaining, “The system was totally hacked.”
Apple declined to comment to the Journal outside of the court testimony.
|Time Spent Listening To Pure-Play
Streams Increases While AM/FM Slips
Satisfaction and time-spent with digital streaming of broadcast (AM/FM) radio is slipping and soon could be overtaken by such on-demand pure-play companies as Pandora, Spotify, and iTunes. That’s the word from Bridge Ratings President Dave Van Dyke, who said in a LinkedIn post that time spent with broadcast simulcast online streams five years ago (2009) was 2-1/2 half hours a day, while pure-play time spent was just under 1-1/2 hours. Furthermore, until 2012 broadcast online listening and pure-play listening continued to increase.
That all changed in 2013, Van Dyke says, as time spent per day with online broadcast streaming dropped while pure-play time spent continued to increase. “At Bridge Ratings, our first thought was that this could be an anomaly,” he observes. “The perception was that all internet streaming behavior was increasing. [But] trends do not support this thinking.”
In fact, a new year-end analysis from Bridge Ratings suggests that, since 2012, broadcast radio online daily time spent listening (TSL) has fallen 9.4% (2.65 to 2.40 hours per day) while pure-play online listening has increased 65% (1.7 to 2.35 hours per day). “By this time next year, online pure play time spent will have surpassed broadcast radio’s online simulcast TSL,” Van Dyke says. “And if broadcast radio streaming content remains more or less the same as it is, we project this trend will continue on out to at least 2017 with a large gap favoring pure play internet listening.”
|Grooveshark Offers New Digital
Music App In Plan to “Go Legit”
After suffering a string of legal setbacks over the last few years, Grooveshark has developed a new app designed to set the company on a legitimate path to digital music streaming. As CNET reports, the new Broadcasts app lets users create customized radio stations without running afoul of the record companies. The app, expected to launch next month, lets customers build and access custom radio stations and text fellow users as they listen to music. Designed for iOS and Android users, the app will cost 99 cents a month and be commercial-free. The online stations will be developed directly by users rather than generated by Grooveshark.
One of the primary objectives behind the new app is to create a business model that will keep the company out of the court system. Grooveshark currently offers websites both for PCs and mobile devices in which users can search for and stream an unlimited number of songs produced by major record labels. That system led several record labels to sue the company, arguing Grooveshark lacked the necessary rights to upload the copyrighted songs. Back in September a federal judge in New York ruled that Grooveshark’s co-founders had uploaded almost 6,000 songs for which they had no licenses, and subsequently destroyed evidence of the uploads.
Since then, Grooveshark has created dedicated iOS and Android apps for its streaming service, but both of those apps were taken down following complaints from the record labels. The new Broadcasts app means Grooveshark will pay government-mandated performance fees set by the Copyright Royalty Board rather than negotiate directly with the recorded music companies.
|Pandora Releases New User
Interface For Mobile Listening
Pandora this week released a beta version of a refreshed mobile user interface that includes new station personalization features and functionality. According to a company statement, the update currently is available to only 3% of iPhone and Android smartphone users, but will roll out to all mobile and tablet listeners over the coming months.
“For more than a decade, our engineering team has worked to perfect the personalized radio listening experience and unleash the infinite power of music for our listeners,” Pandora Chief Technology Officer Chris Martin said in standard PR-speak. “With our users logging more than 1.65 billion listening hours in September alone, we were extremely mindful in the way we made adjustments to the [user interface] so as to enhance and simplify the experience.”
Major changes include enhanced station personalization capabilities and improved artist discovery. The redesigned interface also is reported to be simpler to use and clearer to the ear. “Listeners are given a different sense of place and navigation with the new transitions from the ‘station list’ to the ‘now playing’ screen, and can view comprehensive thumb history and adjust thumb feedback for old tracks listened to,” the company said. [Read more: Company statement]
A publication of Bunzel Media Resources © 2014