Destiny Media & Musicrypt Come To Blows – Again
Destiny Media Technologies has filed a $25 million lawsuit against rival Musicrypt alleging defamation and economic interference. These two love to tussle, last March Destiny asked courts in Canada to declare Musicrypt’s patent invalid, which prompted Musicrypt to file a counterclaim of patent infringement. That case remains pending.
Both Destiny Media and Musicrypt offer digital media distribution systems that let record labels send promotional singles to radio stations and other outlets in a secure, high fidelity format. The competition between the two has been fierce, and often marked with bad-mouthing, and of course, litigation.
Destiny Media operates the Play MPE system, which until this year was marketed as PromoOnly MPE under a co-marketing agreement with PromoOnly. The partnership ended somewhat abruptly in March 2007 for unknown reasons. However, Destiny’s cantankerous business demeanor is rumored to be the cause.
Musicrypt previously had alleged the MPE system violated its patents, and Destiny Media claims the company also threatened several Canadian customers with legal action for using the system.