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Apple Monopolizes MP3 Market, Gets Sued

- By - Source : Tom's Guide

"iPod" — made you look? Well, pretty much everywhere you look, you see an iPod. You mention portable MP3 player to anyone, the first word out of their mouth is usually iPod. iPods have pretty much taken over the portable music player industry.

Luxpro, a Taiwanese manufacturer, has filed a lawsuit against Apple claiming the California based company gained its market dominance through monopolistic behavior. The suit was filed in the United States District Court — Arkansas. Luxpro claims in the lawsuit that "Apple has sought to stamp out the competition using various schemes" and "has repeatedly used unfair tactics against other smaller manufacturers."

Back in 2005, Luxpro showcased its ’Super Shuffle’ device at CeBit. The device apparently looked too much like Apple’s iPod shuffle and Apple applied for and won injunction relief from a German court. Luxpro then later renamed the device under the ‘Super Tangent’ name.

"Apple, as part of its scheme to squash a competitor, then sued Luxpro in Taiwan alleging that the appearance of the Super Tangent, EZ Tangent, and Top Tangent closely resembled the iPod shuffle," the lawsuit reads. "Through a clearly one-sided submission by Apple when the lawsuit was filed, Apple was able to convince a Taiwanese court to enter a preliminary injunction that prohibited Luxpro from manufacturing, distributing and marketing any of its MP3 products." Luxpro won the case on appeal — claims "Apple’s unlawful legal strategy caused Luxpro to lose valuable market opportunities and a considerable amount of product orders."

Luxpro also claims that Apple applied pressure to its business partners demanding they stop doing business with Luxpro. Luxpro is currently seeking a jury trial and punitive damages "to punish the conduct of the Defendant and to deter others from similar conduct."

For the record, this is not Luxpro’s first lawsuit against Apple. The company sued Apple in 2005 for US$100 million claiming lost sales.

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thogrom 10/21/2008 2:10 AM
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I hope they win... apple needs to get slapped in the face

Anonymous 10/21/2008 2:35 AM
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You think Microsoft practiced monopolistic behavior, just wait until Apple gets bigger. Steve Jobs makes MS look like Mother Teresa.

ravenware 10/21/2008 2:54 AM
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Nik_I 10/21/2008 2:56 AM
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the basis to this lawsuit may not be the best one, but apple really needs to be dealt with. They get away with so many monopolistic things. remember when M$ got sued for bundling IE with windows? That was "anti-competitive". so explain to me why apple is allowed to literally force you to use itunes with your ipod. isn't that also anti-competitive?

eklipz330 10/21/2008 3:14 AM
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Apple should be government regulated, such as food and water. It's apparently become a necessity to life, even poor African children yearn for their first 'click-wheel.

Yeah but seriously, they need to stop. And when I say stop, I mean stop calling my Creative Zen an iPOD or whatever, I'm getting sick and tired of it. I think the only company that can stop this is... GOOGLE

In GOOGLE we trust.

nukemaster 10/21/2008 4:30 AM
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Zen FTW!!!!

dane0198 10/21/2008 4:36 AM
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yawn... I guess the lawyers are making money

Anonymous 10/21/2008 4:40 AM
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I hope they win and apple gets slapped in the face! After that article how they sued school since their logo was an apple :|

Anonymous 10/21/2008 4:56 AM
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eklipz330,

I think Google is the scariest of them all. Its one thing to try to own your technology stack (MS or Apple) - annoying but not dangerous. Google wants to own all your information and data - they scare me. If the initial Chrome EULA is any indication, I do not believe they actually mean the "do no evil" mission statement.

Sure they loosened the EULA but the fact in made it out in the first place give us a little insight into where their head is.

thogrom 10/21/2008 4:59 AM
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Google is like a big brother... despite all their flaws i love google... I haven't had any issues with anything they do... and the few programs and such that they do have issues with... I avoid at all cost... because thsoe few suck a** lol

Maxor127 10/21/2008 5:04 AM
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thogrom 10/21/2008 5:10 AM
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They aren't a monopoly... no matter how you look at it they aren't... but they use strategies and techniques that indicate that they are... which are inherently illegal...

Apple is popular because apparently most of society has an IQ of about a 100... so that means people who like pcs aren't normal... I'm proud of the fact though that I detest Macs... they are "cool" style wise... function wise... the very opposite of "cool"

the_one111 10/21/2008 5:24 AM
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Thogrom: spreading the word throughout the lost lands.

Lol.

The ONLY reason people use a mac over PC is because they are stupid enough to believe the apple commercials and because macs "look good". If they actually knew about things called "hardware" or "games" or "media" instead of blogging and the internet, period, they would figure out pretty quick that PC's own the market in everything else. The catch is the PC is cheaper, more reliable in some cases and can do blogging and everything else.

If you try to tell me that macs don't cost more for less you can just keep on lyin' cus i ain't believein ya.

the_one111 10/21/2008 5:34 AM
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I await the day my MP3 player is called its correct name, not being associated with a company full of crap.

Anonymous 10/21/2008 5:59 AM
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MDillenbeck 10/21/2008 7:16 AM
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This time I'm going to take Apple's side. Based on the article, it sounds like Luxpro released a product of similar name, design, and concept ("Super Shuffle") as the iPod Shuffle. Sounds fairly clear cut that Luxpro wanted consumers to confuse the two devices and buy their model over Apple's model.

I mean, I can go out and create a company called "Orange" with an orange missing one slice as a logo, and create these cool all-in-one PCs that come in unique colors and have names like iTangerine or Power Tome Pro. However, I shoudn't expect to get away with it. Especially if these cases look awful familiar in design as some company that also uses fruit as their logo...

Dee_20 10/21/2008 7:35 AM
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I have questions for M$ lovers, why m$ introduce a Zune player and software? Why M$ not just release zune player to work with the win media player? If one day zune player becomes the leader in media player in the world and we must use zune software for all your medias, what should we do?

WheelsOfConfusion 10/21/2008 7:43 AM
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The_one111 :
I await the day my MP3 player is called its correct name, not being associated with a company full of crap.


What about calling it something that doesn't depend entirely on a proprietary file format?

teh_boxzor 10/21/2008 8:17 AM
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i don't even know why they have anti-trust laws in the US or any nation for that matter...I mean regulation only hinders economic growth and therefore introduces false inflation. just bust a hong kong and go laissez-faire, winner take all. a true capitalist market would not settle for a anti-trust lawsuit.

Anonymous 10/21/2008 8:42 AM
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Luxpro is just like all the other asian companies that take a succesful product and copy it with thier cheap version to steal sales. Where I live there are car stereos from the brand Pointer (Pioneer ripoff) with similar logo and many other knockoffs. Sad thing is that there are fools that buy these products thinking they're getting the real thing. I don't blame Apple for defending their product which is obviously being copied. Do you all blame Gibson Guitar for trying to stop others like PRS and other chinese makers for copying their Les Paul design? I don't. If you don't want an iPod, well don't buy it. You're under no obligation to do so. If you don't like Macs, don't buy them.

Anonymous 10/21/2008 9:26 AM
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reading this article makes me sad. Apple's ad campaign is no doubt one of the best in corporate history. However, they have manipulated many if not all to believe their great services. Apple single handedly hand-picked each and every way you could do your thing. On a mac, everyone does the same thing the very same way. On microsoft's side, you have many options to get your stuff done.

From that alone, you can see apple would like to control their market as well. However, the major flaws from ipods needs more look-alike competition to make them add more functionality in it. Come on steve, add a front camera for the iphone 3g. Its the 21st century for crying out loud.

WheelsOfConfusion 10/21/2008 9:44 AM
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teh_boxzor :
i don't even know why they have anti-trust laws in the US or any nation for that matter...


Because collusion between major companies to reduce competition and introduce predatory pricing can be extremely bad. Laissez-faire capitalism often fails to protect the populace from the rotten side of profit-seeking practices. This is why competition/anti-trust laws come into being, through empirical fact that the trusts they're combating can be detrimental rather than productive. "Economic growth" isn't the only thing you should try to promote in a society.

zodiacfml 10/21/2008 9:46 AM
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yeah, no monopoly here.
it was just that average people weren't aware of the mp3 files before and then Apple started producing pretty looking and easy to use/navigate players which can replace portable disc players, combined it to a service that allows ease of acquiring mp3s then there we have a popular mainstream product.
i bet, there's a lot people before who didn't know they can rip a cd and re-encode to mp3 and find too cumbersome and complicated which explains the unpopularity of mp3 players before the Ipod.
heck, many people don't even know Apple until Ipod.

Anonymous 10/21/2008 10:36 AM
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damn this is teh dirtiest thing i have heard, how can you sue some one over product similarity ? geezus christ ! seriously if every oen was suign over product simularity half the food companies would be tied up in law suits 99.9% of the time , then dont forget the fact that most every electronics company would avhe a case agaisnt walmart and their "durabrand" name LOL , apple needs to be slapped with a sock full of lead

coolkev99 10/21/2008 1:24 PM
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I have never, and will never buy an Ipod of any kind as long as Apple supports its DRM-love fest Itunes.

Anonymous 10/21/2008 1:42 PM
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whats an iPod?

WheelsOfConfusion 10/21/2008 3:07 PM
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coolkev99 :
I have never, and will never buy an Ipod of any kind as long as Apple supports its DRM-love fest Itunes.


Personally I wouldn't buy one as long as companies like Cowon makes better, more compatible devices that I can buy for less money.

adamk890 10/21/2008 3:21 PM
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Yay! its about time some one back handed Apple off of his high horse with a nice lawsuit.

computerninja7823 10/21/2008 4:01 PM
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fuggley :
whats an iPod?


Exactly...i have never wanted to own an ipod or any apple product...its no wonder apple has enough money to still be in business they keep making thier precious ipod thinner and thinner and people put them in thier pockets and sit down and boom it snaps in half...then they go buy a new one and it breaks and so on and so forth

Anonymous 10/21/2008 4:06 PM
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Maxtor127 said:
"You guys are idiots. If Apple isn't close to bankruptcy, they're getting called a monopoly and called too powerful. And suddenly Microsoft, which is probably the worst of them all is some innocent underdog. And Google is no different. It's not Apple's fault that they're popular with consumers. If everyone started buying Hondas and other car companies lost all of their customers, would that be a monopoly too?"


If Honda made you put gas in your car only at their own gas stations, then yes, that would be monopolistic behaviour.

Kami3k 10/21/2008 4:42 PM
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I apple loses to this lawsuit, I mean who really sues a fricken SCHOOL! Oh wait APPLE!