Monec Holding, Ltd., a Swiss company, is suing Apple over its patent for “an electronic device, preferably an electronic book” that is “a lightweight electronic device with a touchscreen LCD display for reading e-books.” The company is seeking attorneys’ fees and an injunction. If they succeed, it could mean Apple would need to remove all e-book applications from the App Store, including the Kindle for iPhone App.
It appears that the complaint isn’t necessarily that Apple allows the iPhone to be used as an e-reader but that they have been marketing the iPhone as such.
You can read more about the story at Wired.com or AppleInsider.com.