After filing documents trademark documents concerning the use of "Pod" and "iPod" in products and advertising, Apple is pursuing a lawsuit against a Michigan iPod repair business, the iPod Mechanic. AppleInsider reveals that in 2006, Apple had warned business owner Nicholas Woodhams over the use of the terms, asking him to stop. Woodhams allegedly agreed, but did not follow through, and has now supposedly tipped the scales by committing fraud against Apple.

Woodhams is being charged with bilking Apple for service components, including several counts of taking advantage of the company's iPod shuffle repair service. According to the filing, Woodhams would submit a repair claim to Apple, who would then send out an advance unit, with the expectation that the broken unit will be sent back, but instead he would keep the dead player and dispute the charges with the credit card company.

Apple observed that Woodhams then sold the repaired unit at a hefty discount costing Apple over $75,000.

In addition to the selling of replacement Shuffles, Woodhams is also accused of fooling Apple into covering the repair of an iPod that is out of warranty, by switching the back cases so serial numbers match up. Apple did not mention how much money was lost during this fraud account.

Apple is seeking triple damages due to all three counts being on purpose, in addition to Woodhams ceasing to use the iPod Mechanic website, and the offending trademarks.