Stingray responds to lawsuit, says allegations ‘not material’

A Canadian digital music company has responded to a lawsuit containing allegations that it infringed on the patents held by a U.S.-based digital music distributer. Pennsylvania-based Music Choice, a multi-platform video and music network, filed a complaint for patent infringement in a Texas court Monday against Montreal-based Stingray Digital Group Inc. “We have gone through great measures to secure patents for our intellectual property and feel compelled to take legal action to protect our business investment,” Dave Del Beccaro, president and CEO of Music Choice, said in a Monday press release. Music Choice is seeking unspecified monetary fees and a permanent injunction preventing Stingray from using its patents. Stingray released a statement Tuesday stating that the allegations — that it infringed on four of Music Choice’s patents — are “simply not relevant.” Music Choice alleges in the 50-page complaint that Stingray expressed interest in acquiring Music Choice and, in May of 2013, a confidentiality agreement was signed where Stingray allegedly had access to Music Choice’s technical, business and financial documents and patents and pending applications. In the fall of 2014, Music Choice alleges Stingray launched an improved digital service that included “features and functionality infringing Music Choice’s patents” for distribution through AT&T Inc.’s U-Verse services. On March 1, 2015, AT&T replaced Music Choice with Stingray’s music system. Mathieu Péloquin, senior vice-president of marketing and communications at Stingray, said in a phone interview that Music Choice’s claim is “not material” because Stingray’s system — that Music Choice alleges was developed after it had access to its documents — was already “in the market in Canada.” Péloquin added that Stingray signed on with Comcast Corp. — a Music Choice shareholder with a 12-per-cent stake in the company — as a distributer a month ago. “We truly believe that this is not just a mere coincidence,” he said.

Stingray responds to lawsuit, says allegations ‘not material’

Brief | June 8, 2016

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