Amazon Pulls a Fast One on Apple

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Apple (NASDAQ:AAPL) is already unhappy with and in litigation over Amazon’s (NASDAQ:AMZN) Appstore, and now Amazon appears to be pulling one over on Apple with its music store as well.

The claim Apple has made against Amazon is a mere battle of semantics, as Apple claims “App store” is not a generic term for a store for applications, and therefore can and does belong to Apple, while Amazon argues the opposite. As the owner of the “App Store” trademark, Apple is looking for a court to validate its claim to the term, but a U.S. magistrate judge has ordered the two companies to meet on March 21st to settle the case between themselves.

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So, without their last fight settled, Amazon is throwing punches again, but this time, Apple has little recourse.

Amazon’s Cloud Player, which sits in direct competition to iTunes, already poses a real threat to Apple’s music service with its competitive pricing. Now, Amazon is offering a Cloud Player app for iOS devices through Apple’s own App Store, which should get a 30 percent cut of the app purchases and music purchases, per the terms of Apple’s normal agreement with app developers. Amazon has a library of over 22 million songs and 2 million albums, and could be looking at significant sales, which means Apple could be looking at a significant revenue source — that is, if there were a cut to be taken…

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