14 DAY TRIAL // SanDisk faces legal lawsuit in a German court on the grounds of patent infringement brought by Sisvel - an Italian patents company - which recently stated that SanDisk used a patented technology to playback tracks on its latest Sansa e820, a new MP3 player that is meant to challenge iPod's supremacy.
But the scandal has also damaged the manufacturer's reputation, as many of its new Sansa players were retrieved from its booth at the IFA, the largest consumer electronics fair that is taking place in Berlin, Germany. The move was made after Sisvel got hold of a restriction order against SanDisk.
Looks like SanDisk refused to pay for the MP3 license, according to Giustino de Sanctis, head of Sisvel's US-based subsidiary Audio MPEG, who told BBC that: "By definition you have to follow the standard. We have 600 licensees and we have to protect their rights, and the rights of the patent holders."
Furthermore, Sisvel President Roberto Dini told the website DigitalLifestyles.info that SanDisk could get an advantage over other challengers because - by not paying for the license - it could retail its Sansa series cheaper.
The company's booth at IFA is empty and several representatives acknowledged that SanDisk is facing legal action is a German court based in Mannheim, Germany.
"The MP3 compression algorithm emerged in the 1990s following development efforts by two sets of technology companies and institutes. Sisvel and its US subsidiary Audio MPEG issues MP3 licences on behalf of Dutch firm Philips, a French firm and a German research institute," informs BBC.