Zite is neck-deep into shite.
A few weeks ago, the Vancouver startup launched its social magazine iPad app. Now, CEO Ali Davar has received a cease and desist letter from a large group of media company lawyers, who collectively insist that Zite must stop "misappropriating" their intellectual property.
Zite uses an algorithm involved a user's web browsing history, viewing patterns, Google Reader, and even Twitter history to create a thoroughly tailored magazine experience for each individual. Except the media companies don't give a rat's ass about all that jabber - they're concerned about the fact that Zite is "reformatting and republishing substantial portions" of articles, if not their entirety. Moreover, the companies claim Zite is going so far as to misuse trademarks and falsely imply affiliation.
Companies pressuring Zite include such giants as The Washington Post, Time, AP, and Getty Images. Not exactly the guys and gals you want in the opposing court, eh?
UPDATE: Here is a link to Kara Swisher's article, which includes the cease and desist letter in full.