Spotify has been hit with its first lawsuit since arriving in the U.S. two weeks ago.
The European digital music streaming service was slapped with a patent infringement lawsuit on Wednesday by San Diego-based software company PacketVideo.
In the lawsuit, which was filed in the U.S. and the Netherlands, PacketVideo claims that it originally secured a patent in 1997 for an invention described as the "device for the distribution of music in digital form." A similar patent was granted in Europe.
PacketVideo also claims that it first brought the patent infringement issue to Spotify in May, but failed to negotiate a licensing deal.
In a statement released to Reuters, Spotify says that its technology is "highly innovative" and allows for "a better music experience - lightning fast, dead simple and really social."
The lawsuit, obtained by websites Electronista and Techdirt, states that PacketVideo is currently embedded in more than 260 million devices around the world and is responsible for more than 320 products.
Spotify might not need to worry too much about the lawsuit, some have suggested.
"A decade ago, [PacketVideo] was considered one of the hottest startups on the planet for trying to figure out ways to do streaming video on mobile phones . . . of course, PacketVideo failed to live up to the early lofty expectations," TechDirt notes.
Since its 2008 launch in Europe, Spotify has gained more than 10 million users around the world. In its first week after being released in the U.S., the company attracted approximately 70,000 paid subscribers, according to a Billboard report.
Head over to Electronista for the full text of the lawsuit against Spotify.