Within two weeks of its American launch, European music service provider Spotify has landed in a lawsuit for patent infringement.
According to Venture Beat, mobile media firm Packet Video has filed a lawsuit against Spotify accusing the company of infringing upon its patents to develop its cloud-based music service.
The case has been filed in the district courts of Netherlands and San Diego after Packet Video failed to strike a license sharing deal with Spotify.
"PacketVideo has a strong intellectual property portfolio, and will take any necessary action needed to protect its intellectual property and prevent the misuse of its patents," the general counsel of lesser known Packet Video, Joel Espelien said in an official statement.
Patent number 5,636,276 which was filed in the year 1995 is listed very loosely and may apply to any firm indulged in cloud-based music service.
In response to the lawsuit, Spotify has defended its music service and has said that the company will fight the lawsuit competitively.
Packet Video, the San Diego, California-based company was one of the first leading start ups to work upon streaming audio and video files on mobile phones, and thus claims an injunction of Spotify and seek damages from the company.