Meet Kane Kramer. In 1979, he filed a patent for a device called the IXI, an early digital device that held about three minutes of music. He let the patent lapse a decade later, and never saw a penny from Apple's blistering success with the iPod.

You might think this was a story of a bitter man with an agenda against Apple. There, you'd be wrong.

Apple was dealing with a lawsuit from Burst.com in which they claimed to have originally come up with the idea for the iPod. Apple asked Kramer to testify on their behalf, talking about how he filed his patent years before Burst did. Instead of fighting further, Burst and Apple settled out of court. Kramer was paid a consultancy fee for traveling to California and making his deposition.

"The questioning by the Burst legal counsel there was tough, ten hours of it. But I was happy to do it," Kramer told the Daily Mail. "To be honest, I was just so pleased that finally something that I had done which has been a huge success and changed the music industry was being acknowledged."

Presumably on friendly terms, Kramer is negotiating now for compensation from Apple with regards to his original idea.

[Via Valleywag.]

In a move that screams 'I was waiting for the right time to mention it,' Burst.com yesterday filed a patent counterclaims lawsuit against Apple Computer, claiming that their iTunes, iTMS, iPod and QuickTime Streaming infringe on four of their patents.

It appears that this time around Apple actually fired first. Earlier this year, Apple asked the courts to render Burst's patents invalid, which sparked this counterclaim they filed yesterday. Burst has stated that they had hoped to avoid the courts and negotiate a "reasonable license fee," but it seems that a court is exactly where these two companies will need to settle the dispute.

Check out Macworld's article if you're interested in more details surrounding the case.