Apple's legal woes in the 1.33 billion people market of China have worsened as Shanghai Animation Film Studio filed a lawsuit over the allegedly improper iTunes downloads. The studio asserts that Apple's been illegally selling its content and is seeking north of half a million dollars in damages. Shanghai Animation is China's first and oldest animation studios and their complaint alleges in no ambiguous terms that Apple blatantly stole their content without paying any royalty at all.
Note that Apple doesn't offer movies on the Chinese iTunes Store so the issue is thought to involve App Store apps which bundle the studio's movies. Apparently, Apple made available as much as 110 unlicensed Shanghai Animation titles for download via the App Store back in July 2012. The suit was reportedly filed with the Beijing No. 2 Intermediate People's Court, which has allegedly accepted the case.
So what's going on here? Did Apple intentionally steal and pirate someone else's content through its content store?