Destiny Media Technologies filed a $25 million lawsuit against rival Musicrypt today, alleging defamation and economic interference.
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 litigation.
Destiny Media operates the Play MPE system, which until this year was marketed as PromoOnly MPE under a co-marketing agreement with PromoOnly that has since ended. 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.
This is not the first time the two have found themselves at legal odds. 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.