Apple Inc. introduced a new software update for its celebrated music player, iPod for which the company is facing a trial currently. According to the attorney for plaintiffs, the new software update merely increases the cost of the iPod; it does not improve the product itself.
Apple Inc. dominates the industry for digital music, much thanks to its iPod series. An antitrust case was filed against Apple Inc. (NASDAQ:AAPL) regarding this domination, which keeps a strong check on the company’s activities. The closing arguments for this trial were delivered in a courtroom in Oakland this Monday.
The plaintiffs are iPod users who bought the model between 2006 and 2009. They claim that Apple Inc. unfairly blocked competition to promote its own cause. For this, the plaintiffs are demanding damages worth around $350 million. Under antitrust law, this amount triples automatically.
The attorney representing the plaintiffs, Patrick Coughlin, told the courtroom that in 2006, a software update was rolled out for iPod. This update allowed the users to download music only from the iTunes and restricted the device to iTunes only. Coughlin said that this software update was only and only about reducing competition.
Meanwhile, the attorney for Apple Inc., William Isaacson, said that the new update was introduced with the intention to improve the experience of consumers and as a means to prevent music theft. The evidence for Isaacson’s claim is overwhelming. The new software update had other interesting features as well, such as movies. According to Isaacson, the claim of the plaintiffs suggests that Apple Inc. should not be innovative.
The jury has decided to first of all determine whether the software update provided any benefits to the customers. If the jury finds the update beneficial, then the case will be ruled in favor of the company; however, if Apple Inc. fails to convince the jury, then the jury will move to other damages and antitrust issues.
According to plaintiffs during the time when the software update was rolled out (in 2006) Apple Inc. was facing stringent competition from Real Networks. Real Networks developed the RealPlayer which allowed music from all sources to be played on the iPod. Soon after, the new software update in question was launched by Apple Inc. This move kept the iPod owners from buying a new device.
Steve Jobs, the co-founder of Apple Inc., who died in 2011, gave testimony shortly before his death. The trial includes videos and emails of Steve Jobs’ testimonies. This Monday, Isaacson read out an email from Steve Jobs to show how Apple Inc. has always been concerned about security issues. In the email, which was addressed to his colleagues, Jobs had said that the company must act strongly against theft without any exceptions or lenience.
With both sides fighting actively to win the case, it is only a matter of time before the jury will make the final decision. If Apple Inc. (NASDAQ:AAPL) loses the case, it will have to pay a heavy fine. This case is one of the many controversies that the tech giant is currently facing; it seems that the company has its work cut out in terms of legal battles.
