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Apple Hit with iPod Monopoly Lawsuit
Wednesday, October 15th, 2008 at 4:00 PM - by Jeff Gamet
MP3 maker Luxpro Corporation hit Apple with a lawsuit in Arkansas claiming that the iPod and iPhone maker holds a monopoly in the digital media player market and is abusing that power to keep its competition down. Luxpro alleged that Apple unfairly pushed its iPod shuffle-like Super Shuffle music player off the market, according to InformationWeek.
Luxpro unveiled its Super Shuffle player in 2005 at CeBit in Germany, but the company wasnt able to keep its player on the expo floor for long. The similarity to the original iPod shuffle design along with Luxpros naming scheme prompted Apple to request an injunction against the company prohibiting it from selling its apparent knock-off player.
The company also accused Apple of pressuring retailers and parts suppliers into avoiding Luxpro and its products. According to the lawsuit, "Apple sent warning letters to other companies doing business with Luxpro demanding that they cease doing business with Luxpro. For example, Apple placed significant pressure on InterTAN, a subsidiary of U.S.-based consumer electronics giant Circuit City, to drop Luxpros MP3 players from its retail shelves."
Luxpro and Apple previously locked horns in court over MP3 players. In 2007, Apple was able to block Luxpro from selling its MP3 players, but that ruling was later overturned.
Luxpro is seeking US$75,000 in damages. Apple has not commented on the pending lawsuit.
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