iCopyright, a US-based provider of intelligent copyright systems for digital content, has reportedly filed a lawsuit against news agency Associated Press (AP) for breach of contract and unfair competition.
In a complaint filed in November in federal district court in New York, iCopyright has alleged that AP failed to meet its promise to promote iCopyright's service. Additionally, it has charged AP of developing its own licensing service, or 'news registry' while it 'had access to and knowledge of iCopyright's confidential information'. The lawsuit, signed by iCopyright's lawyers and verified by the company's CEO Andrew Elston, outlines that the company seeks to recover damages.
AP has termed the lawsuit 'meritless' in a statement. In its court papers, the news organisation stated that it terminated its contract with iCopyright because the latter had not paid it an agreed-upon minimum $15,000 per month since March. Further, it said that its news registry was developed independently of iCopyright.
AP had signed a deal with iCopyright in 2008 to create a web-based licencing system for its content. At that time it said that AP-hosted stories would feature links which would direct users to the iCopyright service at the top and bottom of the articles. These links were expected to give AP content users the option to e-mail content, request copies, purchase photos or publish to their own websites.
US District Court Judge Naomi Reice Buchwald has denied iCopyright's request for an emergency restraining order. However, she will still consider whether to issue an injunction in the next several weeks.
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