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Universal Music accused of stealing PIN trade secrets

OUT-LAW News, 30/09/2002

Vivendi Universal’s music division is being sued by US technology company DownloadCard over alleged infringement of proprietary technology and theft of trade secrets. The lawsuit, filed in a district court in Manhattan, followed the label’s promotion of Bon Jovi’s new album, “Bounce,” each copy of which includes a unique PIN code.

The Personal Identification Number (PIN) attached to the CD allows purchasers to register on Bon Jovi’s web site and chat with members of the band or receive special content and offers by e-mail.

According to Associated Press and Launch.com reports, DownloadCard, which provides anti-piracy services, alleges that it wrote the software that enables the user to access to the special content via the PIN number and that Universal Music has already used it in over 12 promotions, recognising that it was DownloadCard’s “protected intellectual property. “

DownloadCard said that it had created and offered to Universal a solution designed for the “Bounce” promotion, and that the two companies were in discussions for several months. According to the lawsuit, however, Universal copied the system and used it to print millions of copies of the new album without authorisation.

In the lawsuit, DownloadCard is seeking more than $750,000 in damages in addition to halting the promotion programme.

Universal Music has not yet made any comment.

 

 

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