Spotify has been sued for patent infringement in the US.

PacketVideo has sued Spotify in the U. S. and the Netherlands for allegedly violating US patent 5,636,276. PacketVideo deals in developing software to help people wirelessly listen to music and watch video.

PacketVideo has notified that a patent which was secured in the year 1997 after acquiring Switzerland-based Company Basel was related to "distribution of music in digital form" and Spotify has used its patented technology in cloud-based music service.

PacketVideo has filled the case in the district courts of Netherlands and San Diego. In the filing PacketVideo has challenged Spotify USA that has used the '276 patent and has been encouraging others as well to use the '276 patent in an infringing manner.

PacketVideo has asked for a permanent ban of Spotify's service in its law suit. The company will also ask for the compensation and the attorneys' fees.

Joel Espelien from Packet Video stated, "PacketVideo has a strong intellectual property portfolio, and will take any necessary action needed to protect its intellectual property and prevent the misuse of its patents".

However, Spotify has defended its music service and stated that the company will fight the filed lawsuit against it.