Intellectual property: #Patents against prosperity

This is apparently a patent on streaming music over the internet. Naturally, you are familiar with #PacketVideo 's popular music streaming service. Oh, you're not? I guess that's because they don't offer one. So, #Spotify is trying to make money offering a service that will make consumers happy. (I'm using it right now. I think it's terrific.) PacketVideo is trying to make money doing what? Shaking down Spotify?

Here's where Mr Myhrvold's Intellectual Ventures comes in. Intellectual Ventures owns a huge portfolio of patents. Quite possibly they also have some sort of patent that covers streaming music over the internet. Intellectual Ventures makes money through a sort of protection racket that helps Spotify defend themselves against companies like PacketVideo. For a considerable fee, a company can access Intellectual Venture's storehouse of patents and use them defensively against companies claiming patent infringement.

Spotify Sued for Patent Infringement

Spotify Sued for Patent Infringement:

A few weeks after finally entering the U.S. market — and reportedly amassing 70,000 paid users — music subscription service Spotify is being sued for patent infringement by wireless multimedia platform creator, PacketVideo.

According to TechDirt, the patent in question is for a “Device for the distribution of music information in digital form.” The patent was filed in the ’90s, and was purchased by PacketVideo a few years ago. Now, the company is claiming that Spotify is infringing on the patent, causing “irreparable harm and damage” to its business, according to the suit.