What if Apple stopped issuing DRM keys?

It happened to Microsoft and Yahoo. Could it happen to Apple?

The limitations of antipiracy software were dramatically illustrated last week when Yahoo Music announced the company would stop issuing authorization keys for the software that prevents its songs from being copied.

Microsoft's now defunct MSN Music service made a similar announcement last spring. Some CNET News readers have asked whether the same thing could happen at iTunes. The answer to that question is yes, it most certainly could.

If Apple ever stopped issuing keys for its FairPlay digital rights management then, just like at Yahoo and MSN, iTunes users would be prevented from moving their music to different machines or devices. That would affect most of the 5 billion songs the company has sold. (Following much public criticism, Microsoft said it would continue issuing keys for another three years and Yahoo is offering refunds.)

To be sure, the likelihood of Apple shutting off DRM keys anytime in the foreseeable future seems remote at best. Apple is the Internet's largest music retailer and may be the largest music retailer overall. The company is riding a wave of excitement over the new iPhone 3G, which besides being a phone and Internet-enabled device, is an excellent music player. Apple appears to be on track to dominate retail music sales for a long time to come.

Still, things do change. Who can say what will happen at Apple in 5 or 10 years? That's a long time from now. But the truth is, DRM's threat to iTunes users' music libraries is real.

If, for some reason, Apple stopped issuing new DRM keys, people's music would get stuck. Check out iTunes' terms of service. The company says that in such a scenario, customers could not hold it responsible: "In the event that Apple changes any part of the Service or discontinues the Service, which Apple may do at its election, you acknowledge that you may no longer be able to use products to the same extent...and that Apple shall have no liability to you."

What the Yahoo and MSN situations show is that DRM-wrapped music is never truly controlled by anyone other than whoever holds the encryption key. Whether it's FairPlay or Windows Media DRM or some other format, consumers are at their mercy when it comes to unlocking their music.

This means that music libraries can be threatened when computers go kaput. (Yes, the workaround is to burn the music to CDs, but then some sound quality is lost.)

While it may seem inconceivable, it's worth looking at what would happen if Apple stopped issuing keys. How would the company compensate customers for 1 billion lost songs?

MSN Music announced in April that it would no longer support the DRM keys on its music. Customers could still play and hear their songs but would be prevented from transferring them to other devices. Two months later, following public condemnation, Microsoft said it would continue to issue DRM keys for three more years.

On Friday, Yahoo Music said it would begin offering refunds to customers who purchased songs from Yahoo Music Unlimited. For people who would rather have DRM-free copies of their songs, Yahoo is also looking into whether it can provide unprotected MP3s.

The problem with Microsoft's approach is that it is only a short-term solution. In three years time, Microsoft could once again opt to end DRM support. And if Apple followed Yahoo's refund policy, it could prove to be mighty expensive.

Apple conceivably could strip DRM from its songs. From a technological standpoint, it wouldn't be hard to do. If Apple ever stopped issuing keys, the company could, in theory, work out a deal with the labels that would allow it to remove FairPlay. It's unclear whether Microsoft or Yahoo tried to negotiate similar agreements with the labels.

Software packages such as PlayFair and QTFairUse already do this.

The real hurdle would likely be the labels. Right now, EMI is the only one of the four largest recording companies selling unprotected song files on iTunes. Apple's agreements with the other three labels require it to offer copy-protected music.

This brings us to a question that has long been asked: At a time when more and more of Apple's competitors are offering DRM-free music, why does Apple continue to sell songs with antipiracy protections?

Who's to blame?
Apple's Steve Jobs says he wants to sell unprotected music. The recording labels have said Apple is at fault. With everyone pointing fingers at each other, the only thing that's clear is DRM has been exposed.

"It is the consumers' responsibility to protect their investments. You have a volatile store sitting on a hard drive."

--Guy Tennant, COO, Entriq

Yahoo and MSN have helped show that consumers of DRM-wrapped music play their songs only with permission of anyone trading in copy protections, and that includes Apple.

Guy Tennant, chief operating officer of Entriq, a company that helps online stores manage publishing, packaging, and protection of digital products--and this includes implementing DRM--says limitations with copy protections shouldn't come as a surprise. "You got what you paid for," Tennant said. "It is the consumers' responsibility to protect their investments. You have a volatile store sitting on a hard drive."

Tennant says he doesn't want to sound unsympathetic but reminds digital-music buyers that CD owners don't demand a refund from stores when they lose their discs. As for backing up songs to a CD, people should just accept the loss of quality because the only other alternative is to lose the music entirely, he said.

"The challenge for DRM technology providers is to create technology that is easy to use and fits consumers' perception of fair use," he said.

[technewsjunkie]

They're right. And Owning, rather than renting/subscribing allows you to protect you r investment.
I might start converting mine to a DRM-less format via iTunes and then archive them on BlueRay disk or some other long term mass storage media.

You can convert your iTunes library to non DRM format using iTunes' capability to do it. For instance when you burn a "music CD" as opposed to iTunes

[Zen-Masta]

In the spirit of being hypothetical, yes Apple would face a **** storm of rage that would quickly make yahoo and msn's ordeal seem like a minor inconvenience. Should this day come Apple had better be prepared to issue a credit towards DRM free music or SOMETHING.

[djames42]

What's lost in these discussions is the DRM on video content. Having come to the obvious conclusion that purchasing seasons of the few TV shows I watch via iTunes is far cheaper than the cost of cable service, I purchased an Apple TV. If Apple stops supporting their purchases, I can burn my audio files to an audio CD and the DRM is eliminated. There is no such ability with video content.

[letterrepdotcom]

Isn't it time, already, for artists to start selling their own work?

[iertry]

Apple couldn't stop issuing DRM keys. They have too many customers that have bought too much DRM'd music. Yahoo and MSN were able to do it but Apple has a customer base. Seriously who actually bought music from MSN and Yahoo? I'm no legal expert but I could see court cases if Apple stopped issuing DRM keys and it wasn't put in the terms of service/eula (I haven't read these but I'm sure if it said this in there everyone would know about it.

[markedman0965]

Music. There are workarounds for that. The real issue is video. What would you do with any movies or TV shows you purchased?

[wylbur]

The thing about it its Apple has such a rocky history. You know after Steve Jobs dies (and, yes, even Steve Jobs will die), the company is going to go straight down the tubes... One can envision an end for Apple with ten or fifteen years that involved bankruptcy, dissolution of the company, and a decision by iTunes Stores new owners that they can make more money by telling us the keys were lost on a server vandalized by an employee who was upset about the complete loss of value of vested options. Free yourself and live the analog life! Death to Digital!

[cerebral_but_dull]

Music is important to us but a triviality. How about your doctor, whose medical school digital textbooks are DRM protected, and he can't double check his recollection of what he was taught for correct diagnosis and treatment of rare diseases. We live in a brave new world where we are changing everything as fast as technology allows, which is a whole lot faster than common sense would allow. It takes a while to see the full scope of unintended consequences.

[sciontcya]

Yes, this is correct - buy CDs and you're set.
I use iTunes Store for convenience, but if you don't backup, you're a fool, and I bet 80% of all computer users are exactly that.
Too bad.

[mbelisle]

"Tennant says he doesn't want to sound unsympathetic but reminds digital-music buyers that CD owners don't demand a refund from stores when they lose their discs. "

Well, obviously: The store can't choose to revoke my ability to play a CD (or arbitrarily lock my CD to only the player I currently own) just because they decided they already got my money and didn't feel like letting me play it anymore. The store has no obligations to me (and vice versa) once I've paid for the CD. It's really not comparable to DRM.

The instant any store shuts down the servers without accommodating users they will be sued and the agreement will be challenged. Or, if Apple were to turn off the servers, I know of a great place to "upgrade" the music I already paid for at no cost.

[zeroplane]

The answer is pretty simple, don't buy anything with DRM. PERIOD.

The exception for me is I purchase Blu Ray movies and video games for consoles, but I am already locked into the DRM scheme because I purchase the console unit from a dedicated vendor $ony (PS3) and Micro$oft (xbox360). But so far, neither has attempted to lock out content. That being said, there is no way and I mean NO WAY I would buy videos or music from their online services.

For video and music content I either a) buy the physical media and then convert it to a digital format. b) Go on the "internets" and download a digital copy someone else has converted (without any DRM like never download WMV).

The will be both analog and digital options from 3rd parties no matter how tightly the media corporations attempt to lock the average consumer into a subscription/lease model. There will be alternatives that break their model regardless if they try a software or hardware strategy to take away my choice. And of course there is nothing stopping me from not watching or listening to their content.

There are plenty of other options all over the world. Most of the videos I watch now a days are DRM free video podcasts, streaming media, and tv shows from the BBC (and the like). Open domain content will be the bane of Media Corporations just like Open source is causing pain to Micro$oft.

[david.earl]

In the UK, there is a law called the Unfair Contract Terms Act where companies cannot impose unreasonable exclusions on consumers. It is up to a court to decide, of course, what is unfair. It would be very interesting for one of the consumer organisations to arrange a test case before the worst happens.

[Vegaman_Dan]

I suppose this means you are only renting content from the iTunes store and not actually purchasing it. If you can't keep it when / if Apple decides to discontinue it, you have no recourse. We're sorry that you spent hundreds/thousands of dollars on content that you no longer can use. We're also quite glad that you did and that we don't have any legal obligation to make it up to you for any reason.

Bleah. This would also result in a court looking strongly at those EULA's that companies are so fond of using these days.

[uhpl508]

This is a question of when they stop, not if they stop, and what the transition might be. Will they let you remove the DRM for 20 cents a song when it happens? DRM on audio for purchase is a dying fad already.

[Zen-Masta]

djames good point, I didn't even thought about that. I've never been a DRM fan myself so when it comes to music I wait for sales from my music club and buy real cds at 6 bucks each or less including shipping. Usually about 30 a year or so. And in regards to movies, I buy all my tv on dvd series when they're on special (never when they come out) and I subscribe to blockbuster.

[William Schnippert]

What if Apple stopped issuing DRM keys? What if Microsoft went bankrupt? Very unlikely.

Also, what is this FUD about reduced quality when burning to a CD? If you buy music in .mp4 at 128kbit the quality is pretty low already. That can be upconverted to 1411 kbit AIFF format when burned. So where is the loss in quality?

If you really want to get the best quality just buy the CD. Rip to iTunes in AIFF or Apple Lossless. Then there is no DRM and you get a hard backup.

[Yuhong2]

Yep, there is a reason why DRM on rented media (audio and video) are less evil than DRM on "bought" media.

[Yuhong2]

"Apple conceivably could strip DRM from its songs. From a technological standpoint, it wouldn't be hard to do. If Apple ever stopped issuing keys, the company could, in theory, work out a deal with the labels that would allow it to remove FairPlay."
"Will they let you remove the DRM for 20 cents a song when it happens?"
Apple is doing this already today. They allow you to upgrade your entire music library to iTunes Plus for 30 cents per song.

[tech_crazy]

"Tennant says he doesn't want to sound unsympathetic but reminds digital-music buyers that CD owners don't demand a refund from stores when they lose their discs. As for backing up songs to a CD, people should just accept the loss of quality because the only other alternative is to lose the music entirely, he said."

This is preposterous. When the owner loses a CD or it gets damaged, the content creator/owner had not hand in the event. And by what stretch of imagination is that equivalent to a company not issuing DRM keys or just going under and holding your legally purchased music hostile?

[Shutterstuff]

Blame the RIAA as it all points back to them. They fought recordable cassette tapes, video tape, CD, DVD and then spent more fighting digital music than all the previous battles combined. The only winners were lawyers and lobbyists. Consumers and musicians both lost in all of the above mentioned battles, all courteous of the RIAA.

DRM wasn't even a good idea on paper, let alone in the real world. 98% of my music is purchased CDs, but the little I purchased on iTunes or Amazon have been burned to music CD so I can rip MP3's if needed.

And I am one of the minority that has an external HD to back up my data? but it took catastrophic loss to get this in place?