Microsoft Beats Apple in Patenting iPod Technology

Apple Computer Inc., whose iPods are the top-selling music player in the United States, lost an attempt to patent some of the device’s technology because rival Microsoft Corp. had already filed a similar application.

Microsoft beat Apple to the patent application by five months, U.S. Patent and Trademark Office documents show. Apple’s request, filed by chief executive Steve Jobs and other officials in October 2002, was rejected by patent officials last month.

The iPod accounts for 75 percent of all MP3 players sold in the United States, according to NPD Group Inc. in Port Washington, N.Y. Cupertino, Calif.-based Apple has shipped 21.8 million iPods since Jobs introduced the player in October 2001, with 18.1 million units sold in the past four quarters alone.

The dispute, which emerged this week on the closely watched website, Appleinsider.com, could lead to Apple having to pay a licence fee for the technology of up to $ 10 a machine.

David Kaefer, Microsoft’s director of intellectual property licensing and business development, said: "In general, our policy is to allow others to license our patents so they can use our innovative methods in their products."

Apple has signalled it will resist the move. A spokeswoman said Apple would continue to try to get its patent recognised. The company could take the case to the patent office’s appeals board. "Apple invented and publicly released the iPod interface before the Microsoft patent application was filed," it said in a statement.

The battle comes as Microsoft is squaring up against another competitor, Google. Microsoft last month launched a lawsuit against the search-engine giant, accusing it of poaching a top executive to head a new research laboratory in China. The Redmond, Washington-based company also sued the executive, Kai-Fu Lee.