Scottish Daily Record

08/15/05 9:10 AM PT

Apple has so far sold more than 21 million of the pocket-sized players. In the past year alone, the company sold 18 million. Reports indicate iPods account for three of every four portable music players bought in the United States, and represent almost one-third of Apple`s sales.

Computer giant Apple (Nasdaq: AAPL) may be forced to pay royalties to arch-enemy Microsoft (Nasdaq: MSFT) for every iPod it sells.

A patenting blunder means Bill Gates` firm could rake in as much as US$10 from every one of his rival`s music player that is sold.

Delayed Application

The iPod was introduced in November 2001, but Apple waited until July 2002 to file a patent application.

However, Microsoft beat them to it and claimed ownership of some of the technology in May 2002.

Now the U.S. Patent Office has ruled that Gates` company have the right to charge their competitors a license fee for each iPod sold.

Representatives of Apple, which has made three versions of the iPod, have said they will appeal the decision.

Broader War Engaged

This latest dispute comes just days after Microsoft declared war on the iPod and vowed to come up with a series of rival devices.

Apple has so far sold more than 21 million of the pocket-sized players. In the past year alone, the company sold 18 million.

Reports indicate iPods account for three of every four portable music players bought in the United States, and represent almost one-third of Apple`s sales.