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Apple Easily Wins iPod Antitrust Trial

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Tech Graveyard
Tech Graveyard.

Briefly, since we marveled at this ridiculous lawsuit recently, the iPod DRM Class Action litigation lost in front of a jury:

A jury ruled in favor of Apple Inc. on Tuesday in a class-action lawsuit that accused the technology giant of violating antitrust laws by suppressing competition for its iPod music players.

After deliberating for only a few hours, an eight-person jury in U.S. District Court in Oakland, Calif., found that Apple’s iTunes 7.0 was a genuine product improvement, and therefore not a violation of antitrust laws. The decision was unanimous.

The plaintiffs had said Apple made changes to its iTunes music service so that iPods wouldn’t operate with other companies’ products, driving up the cost of the devices. The plaintiffs, representing an alleged eight million harmed consumers, were seeking $350 million in damages, which could have been tripled under antitrust laws.

(click here to continue reading Apple Wins iPod Antitrust Trial – WSJ.)

Dead 4G iPod
4G iPod

Another amusing part of this trial was that the original plaintiffs were thrown out since they didn’t even own iPods during the time in question. Embarrassing for the plaintiffs’ legal team, and a ridiculous waste of the court’s docket…

The lawyers fighting Apple in a class-action lawsuit involving iPods have managed to do a few remarkable things: They persuaded a judge to bring a decade-old lawsuit to trial here last week, for one. They even managed to drag the famous Steve Jobs into giving a videotaped testimony shortly before he died three years ago.

But they have one big problem: Their case has no plaintiff.

A federal judge on Monday disqualified the only remaining plaintiff in the case, Marianna Rosen of New Jersey, after Apple’s lawyers successfully argued that she did not even buy any iPods for which she is seeking damages.

The judge appeared annoyed about the discrepancies with Ms. Rosen’s iPods and scolded the plaintiff lawyers for failing to do their homework. Another plaintiff in the case dropped out last week.

 …

Last week, Ms. Rosen testified that she had bought two iPods: an iPod Nano in the fall of 2007 and an iPod Touch in December 2008. Apple’s lawyer asked whether Ms. Rosen kept receipts for her purchases. Ms. Rosen said she probably did not have the paper receipts, but later said her iPod Touch was in her bag.

Apple’s lawyers looked up the serial number of Ms. Rosen’s iPod Touch and found records showing it was bought in July 2009. The class action seeks damages for iPods bought from September 2006 to March 2009. So this iPod Touch missed the cutoff.

Apple’s lawyers last Wednesday pointed out the discrepancy about Ms. Rosen’s iPod Touch in a letter to the judge. They also raised similar concerns about the second plaintiff’s iPod purchases. On Friday, the second plaintiff dropped out of the case, leaving Ms. Rosen as the lone plaintiff.

Ms. Rosen’s lawyers then provided Apple a receipt showing two iPod purchases made in September 2008. But Apple pulled up its copy of the receipt for those iPods, which indicated they were bought by the Rosen Law Firm, the firm owned by Ms. Rosen’s husband. Apple’s lawyers argued that these were not iPods bought directly by Ms. Rosen, and therefore she could not claim injury.

(click here to continue reading Setback for iPod Class-Action Lawsuit as Sole Plaintiff Is Disqualified – NYTimes.com.)

iPod Classic Returned From The Dead
iPod Classic  

Just ridiculous from the beginning. Speaking as a consumer who owned an iPod during this time, and could prove it, the litigation is (was?) groundless – I played music from many sources on my iPod without issue. And it would be like suing a CD manufacturer because some moron bought an 8-track tape and stuck it in a CD player, and the 8-track didn’t play. Is it the responsibility of the CD manufacturer to play every kind of music format ever created? No, this case was a joke.

Robbins Geller Rudman & Dowd should lose their license to practice law…

Bonney Sweeney, the antitrust attorney at Robbins Geller Rudman & Dowd who claims to represent the interests of 8 million aggrieved Apple customers, now represents nobody but a roomful of lawyers.

On Monday, Sweeney lost her last plaintiff, a resident of New Jersey named Marianna Rosen. It turns out the “supracompetitive” price Rosen claims to have paid in 2008 for an iPod (“greater than she would have paid, but for the antitrust violations alleged herein”) was charged to her law firm’s credit card.

(click here to continue reading How dumb is this Apple iPod antitrust suit?.)

Nano gift

iPod Nano 

Especially since this is their second bite of the apple…

After a judge rejected Version 1.0 of the lawsuit, CNET says, lawyers changed their tune to accuse Apple of making software updates that kept rival music stores off the iTunes platform.

This is typical in class-action land. As with any repeated game, class-action lawyers are a well-defined group of players who must establish a reputation for fighting hard in every case and racking up as much expenses on the defense side as they can, in order to induce companies to come to the settlement table. That’s where they make their money, and the convenient fiction that they are suing on behalf of consumers collapses as they get down to the real negotiations, which are over the fee they will be paid without any objections from their supposed opponents across the table.

But for the whole process to work, they still need clients. And those clients must have a case. Defense lawyers have slowly but steadily woken up to the fact that those clients often come with baggage — Bill Lerach, the founder of the predecessor to Robbins Geller, went to jail for paying his clients to appear in securities class actions — and they are digging into their backgrounds to find out if they can even serve as plaintiffs. This must strike some plaintiff lawyers as strange, since everybody knows the “client” is just a vehicle for assembling a case that often is already loaded in their computer, ready to be filed. But it’s the law

(click here to continue reading Whoops! No Plaintiff! Apple Tells Court iPod Owner Isn’t In Class She Represents.)

Mirrored

The current case involving iPods is complex, having evolved significantly since the original January 2005 filing. The suit initially alleged that Apple broke the law by restricting owners of its iPod to songs purchased only through iTunes. A court deemed that legal, however, and the plaintiffs have since altered the suit, alleging instead that Apple made a series of software updates to iTunes specifically designed to shut out competing music stores’ ability to load their songs onto iPods.

The case will aim to determine what effect Apple’s FairPlay technology — a so-called digital rights management tool that acts like a watermark made of code — had on the market for MP3 players when it restricted iPod owners to iTunes and how to interpret Apple’s behavior in protecting FairPlay using software updates. Apple refused to license FairPlay to competing music stores and would not allow other MP3 players to connect to iTunes.

Apple’s Isaacson says the iTunes 7.0 and 7.4 updates were designed to improve security and purposefully keep third parties like RealNetworks, which Apple still considers a hacker, out of its system. “Harmony was outdated when FairPlay was updated. All Apple was doing was updating FairPlay,” he said. “That’s what happens when you reverse engineer the product and there’s an update of that architecture.”

Neither RealNetworks nor any of the retailers named in the suit, including Best Buy and Walmart, have filed suits of their own. RealNetworks executives will not appear as witnesses.

(click here to continue reading Apple misled iPod owners, plaintiffs allege at class action trial – CNET.)

Written by Seth Anderson

December 16th, 2014 at 2:17 pm

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