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June 9, 2006 7:28 AM PDT

Apple faces fresh legal attacks in Europe

  • 38 comments

Agencies want restrictions removed that prevent iTunes from being played on devices made by other companies.
The New York Times

The story "Apple faces fresh legal attacks in Europe" published June 9, 2006 at 7:28 AM is no longer available on CNET News.

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It Never Ends
by Thomas, David June 9, 2006 8:15 AM PDT
If they were serious, they would not be talking about removing
restrictions, but rather forcing Apple to license the code.

Removing restrictions defeats the entire purpose for the
encryption, waters down the reason content providers use the
service, and is contrary to the very reason iTMS/iTunes/iPod
were created in the first place.

What is very interesting is this is a market that only ONE
company has done right so far, maybe this latest development is
evidence of some sort of consensus of defeat. I doubt that, I
think it's more an attempt to dilute one of the successful factors
of Apples solution to make way for others. In other words, if
you can't compete with ideas, and products, then find some
legal maneuver to do it for you.

The whole point of it all is not DRM, On-line Services, or even
the iPod ... the point is, it simply works, and THAT is why it has
dominance. While a littany of developers, and vendors have
tried, they simply DO NOT GET IT.
Reply to this comment
those darn agencies!
by jeffhesser June 9, 2006 9:44 AM PDT
Those darn consumer protection agencies are trying to take down the giant so they can run their own music services!!! are you crazy? The people taking legal action have no interest in competing. how can other hardware vendors 'compete' with the iPod when consumers know if they want to get music from iTunes they are FORCED to buy an iPod.
View all 2 replies
hypocrisy !
by hetzbh June 9, 2006 8:49 AM PDT
Apple didn't use any dirty tricks to "conqueror" this market (yes, I'm looking at you, Microsoft!). They offer the consumer a brilliant player at an affordable price, which seemingly works with their software and store (iTunes).

Further, they are the most liberal in the terms of their Digital Rights Management (DRM). You can burn your song up to 7 times (it can be bypassed easily), play it on 5 machines (Windows or Macs), and play it unlimited number of times on your iPod.

What the competition gives you? yeah, you can play it on your Windows machines (sorry Mac people, you're not allowed to play DRM music), and if you purchased the song on your Notebook, you cannot even move it to your Desktop PC and play it! you can burn it, only once (most of the times, depends on the recording label), and if your MP3 player doesn't support MS DRM, you're screwed.

Looking at the situation, Apple shows a MUCH better offer then what any other MS based DRM offer has to offer, and by looking at the numbers, Apple wins clearly. People buy IPods more then ever and simply refuse to buy the MS based players. Free market powers, anyone heard about it?

My guess is this hypocrisy comes directly from Microsoft HQ and their IHV partners. You cannot win your biggest competitors, so you go cry fawl to the nearest political members/party. You really want songs to be transferred easily between players? Kill the DRM! Consumers doesn't like the way MS treats them (as potential theives) so they don't buy their crap, even with their latest co-operation with MTV (URGE).
Reply to this comment
typical
by jeffhesser June 9, 2006 9:35 AM PDT
If the iPod is so awesome then why should apple worry about allowing other companies to make a player that can play iTunes music? This should simply be another way for Apple to grow their business. But do they look at it that way? NO, Apple wants to be sure they lock it down just like they did the Mac (they make the hardware and they make the OS for it, end of story. now again they make the hardware and they make the software). It is wonderful decisions like this that lets them hold onto their solid 3 or 4% market share in the computer world and that will probably sink their music business within the next decade or so. I am sure those of you who have spent hundreds or thousands of dollars into the single track downloads will disagree, but a monthly service fee for unlimited downloads is the only way to go! $15 a month and I can download thousands of high quality songs and I can choose from a variety of player to listen to it on? granted you cannot burn it onto a CD but that's like going back 10 yrs or so and passing on a CD because I can't dub it onto an 8 track. look to the future not the past.
View all 2 replies
sigh..
by pedershk June 11, 2006 8:19 AM PDT
READ the story. It's not about Apple's unfair competetive practices, not really. It's about their terms of use, which if your read them, are really insane. Basically they can tell you that the songs you purchased can no longer be used. They are, under their current agreement, allowed to simply null and void everything they've licensed to you. THAT's the main sticking point, and it IS illegal under Norwegian and Swedish law. A contract cannot be changed after the fact unless both parties agree to the new terms.
To play devils advocate
by volterwd June 9, 2006 9:24 AM PDT
if apple created a superior product and that is why itunes is so succesful... then why is there a need to lock in itunes to the ipod? well other than to encourage ipod sales.
Reply to this comment
exactly
by jeffhesser June 9, 2006 9:38 AM PDT
It seems like a move that would only further cement their service as THE service for music. Where is the innovation from the innovators?
View reply
Maybe Apple and Oranges but....
by da_bombdiggidy June 9, 2006 10:24 AM PDT
I don't get this... Apple is not an extremely successful company. We all know this, there are more Windows computers than Mac. But now they make one great group of products and it is given the scrutiny that Ma Bell had in her day. To think politicians think this is more important than other issues is crazy. What infuriates the hell out of me is the hypocracy. Why aren't more software and hardware products being force to be develop for the Mac. Apple products have to work with everything but the same is not true in reverse? Or how about all those half a$$ compatible products like Logitech mice. A Mac and Windows user pay the same price for an MX 1000 but you can customize the hell out of it on Windows. The Mac side is hardly funtional. Mac users shouldn't be made to pay the same price for a product that isn't complete. I'm fine with the way the world is today. I am glad that more Window's developers aren't creating for a Mac cause most their apps are poorly written and I hate to see the same true for a Mac. But to force Apple to open up their code is stupid. Standards are great but that is when everyone is on the same playing field. I'm sorry, I don't think any of the other services or devices are close.(IMO)
Reply to this comment
Success = market share???????
by lkrupp June 9, 2006 10:43 AM PDT
"I don't get this... Apple is not an extremely successful company"

Let's see. A company with 8 billions dollars cash in the bank. A
company whose market value exceeds that of Dell recently. A
company whose influence is felt across an entire industry. A
company who posts double-digit profits. A company like Apple
is not "extremely" successful because of market share? What
business courses has the poster taken recently?

You know, there are more cockroaches in the world than
humans. By this logic I guess humanity is not very successful.
Too bad, cockroaches are better than humans because there are
more of them. Porche is the most profitable automobile
manufacturer in the world. GM sells more cars but is on the edge
of bankruptcy. By this logic Porche is not as successful as GM.
Gimme a break.

I will never understand the demented logic of the "market share
is the only measure of success" mentality.
WHAT!!!
by June 12, 2006 4:43 AM PDT
You have to be the largest fool I have ever heard from! Poorly
written code??? What part of Apple software is poorly written,
could you please explain please? You talk about a mouse? Who
cares about a mouse for goodness sake? I mean really? Mac have
supported multibutton mice for years and years and years (yes
you can right mouse click all day long if you want, it just works)!
If you look a little deeper my good person, you will find a
plethora of brilliant Apple based software that is used in the
scientific and medical fields, the animation and video fields and
of course let us not forget that MS generally produces their
newest of "Office" for the Mac platform prior (yes prior) then
their own respective Windows platform! Wanna bet? I'll take you
on!
Maybe Apple and Oranges but....
by da_bombdiggidy June 9, 2006 10:24 AM PDT
I don't get this... Apple is not an extremely successful company. We all know this, there are more Windows computers than Mac. But now they make one great group of products and it is given the scrutiny that Ma Bell had in her day. To think politicians think this is more important than other issues is crazy. What infuriates the hell out of me is the hypocracy. Why aren't more software and hardware products being force to be develop for the Mac. Apple products have to work with everything but the same is not true in reverse? Or how about all those half a$$ compatible products like Logitech mice. A Mac and Windows user pay the same price for an MX 1000 but you can customize the hell out of it on Windows. The Mac side is hardly funtional. Mac users shouldn't be made to pay the same price for a product that isn't complete. I'm fine with the way the world is today. I am glad that more Window's developers aren't creating for a Mac cause most their apps are poorly written and I hate to see the same true for a Mac. But to force Apple to open up their code is stupid. Standards are great but that is when everyone is on the same playing field. I'm sorry, I don't think any of the other services or devices are close.(IMO)
Reply to this comment
What's next: Apple running ads for Microsoft?
by kgofsb June 9, 2006 10:46 AM PDT
itunes is a marketing tool for the ipod, and to some extent, for the Mac. They don't make any money from the service, it was created to help market ipods. What these countries seem to be saying is that Apple must help pay for the marketing of competitor's products, which is of course absurd.

The absurdity is further compounded by the fact that nobody is locked into playing itunes songs solely on an ipod. You can burn your songs to a re-writable CD, and then import them as MP3 files (I did this for months before seeing what a great player the iPod was). So forcing Apple to open up itunes is really just a matter of convenience for users of competitive MP3 players.

Even if we wanted to ignore these issues, and also that Apple does not have a monopoly on selling music, there are other problems with forcing Apple to open up their DRM. They can't just disable DRM, the music companies would not allow it. That means Apple would have to license their iPod software to any competitor that wanted it. The only way they could implement this would be to provide source code for the iPod. Within hours, that code would be on the Internet. So effectively, the response to Apple's success is that they give away their designs, and there is no DRM. I guess that would make some people happy, but those people probably wouldn't be happy if the locks were taken off their doors so that everyone could share what they own.

Disclosure: I own shares of Apple stock. I haven't posted this comment because I own the stock, I own the stock because Apple is the only innovative consumer tech company. The rest of the large electronics and software companies are pathetic sheep.
Reply to this comment
Why not? Microsoft had it done to them!
by aabcdefghij987654321 June 11, 2006 11:24 AM PDT
Apple will just have to get use to these lawsuits from their competitors. This is what happen in this day and age when you are number 1 in your market. Microsoft have had to face the same thing for years. Currently, they are being force to design their products to be compatible with their competitors' products, include their competitors' media players, reveal the source code to their own products to their competitors, etc.
Hey that sound familiar to what you are complaining about above doesn't it. Hope Apple and it's users weren't cheering too hard when these things were being forced on Microsoft.
the iPod is awesome
by Peter Bonte June 9, 2006 11:55 AM PDT
95 % of the music on all MP3 players are ripped or downloaded,
so it is a fair fight. People that buy on iTunes are happy with
there ipods and the DRM on the files.

Why is Apple under fire when MS and Sony have more
restrictions, when certain CD can't be ripped and the Mac
completely left out. Apple didn't abuse there monopoly to grow
this big in music, it was fair competition and Apple won this
time.

Now, i don't think a ruling like this is bad, other DRM schemes
will be subject to the same rules and competition will be fair.
The final word will be with the record industry that forced the
DRM in the first place, if they don't agree there won't be music in
the scandinavian online stores.
Reply to this comment
Apple don't stop you playing iTMS tracks on other devices...
by No invasion of privacy June 9, 2006 11:56 AM PDT
...they just make it inconvenient to do so. Since day one you have
been able to export your iTMS tracks to a CD as aiff or mp3
format, both of which can be played on any "MP3" music player
out there.

What these cases are asking for is already possible and always
has been so they have zero case.

Don't like that, then don't buy your music from iTMS (or any
other online service as they all have the same restrictions in one
way or another).
Reply to this comment
Whiners and Sore Losers
by fwpgreg June 9, 2006 1:13 PM PDT
It really does boggle the mind to think that national
governments are whining essentially on behalf of inferior
products and services because one product/service has become
very successful by people's own choosing. People don't have to
buy an iPod.

It's not like Apple is in a position to force people to buy iPods/
iTunes. The content IS avaiable from other sources.

This whol thing is no doubt fueled by lobbyists on behalf of sore
losers with crummy products that can't compete on innovation,
so they have to resort to legislation. Talk about expensive R&D.

Insanity.
Reply to this comment
The Music CD Is Still King...
by john55440 June 9, 2006 2:12 PM PDT
The non-copy-protected CD is still the best format for purchasing music. It has superior sound quality, and is not stuck in a restrictive/proprietary format.
Reply to this comment
I'm sure the EU will as fair to Apple as they are to Microsoft.
by lingsun June 9, 2006 8:10 PM PDT
I'm sure the EU will as fair to Apple as they are to Microsoft. Which means, they will make arbitrary judgments and arbitrary decisions. Just wait until the EU starts fining Apple on a regular basis and keeps it up regardless of what Apple does. Maybe Apple's competitors should complain to the EU that Apple shouldn't compete with them. You know, play the victim just like Microsoft's competitors do. Hey, maybe Apple doesn't have the right to compete in the business world. There are plenty of Microsoft bashers out there who seem to believe that Microsoft shouldn't be allowed the same rights as other companies.
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I Remember...
by hahne59 June 10, 2006 7:46 AM PDT
...(this is tough for me) that once, while I was sleeping, I heard my window get smashed in. I thought "oh ****, someones breaking in". Then, a group of men in black jumpsuits with Apple logos on them said "Tommorow, you will buy an iPod and music from the iTunes Music Store or we will kill your children and family". The next day I did. I was forced to buy an iPod and iTunes. It's so tragic.
Reply to this comment
Fire Apple's Lawyers
by jon1good1 June 10, 2006 9:11 AM PDT
Apple's Lawyers must be doing a really bad job of making their
case. They are probably sticking to a single point of "must have
DRM" and forgetting everything else at their disposal. It is time
that Apple takes the case to the public with a document on their
iTunes site and Apple.com with an explanation of their position
and business reality along with easy to understand analogies
and "how to's" of backing up iTunes music to CD for those
people like Bjorn Erik Thon who are just too stupid to figure out
how to work their computers. They should also employ as many
lobbyists as Microsoft must be employing to create this
nonsense in the first place.
... And while Norway is at it, I want all games and programs from
my old PC to be made compatible with my Mac. It just isn't right
that, just because Microsoft has 95 percent of the OS market,
that the programs aren't compatible with Appe products.
Reply to this comment
quality matters
by Vackraste June 10, 2006 11:56 AM PDT
Converting to mp3 or burning a cd and later rip and convert to mp3 will degrade the quality. The only acceptable solution would be if Apple only sold music in Apple Lossless format or gave access to software which can be used to strip the DRM from the AAC file.
Reply to this comment
secret of success
by yikes31 June 10, 2006 4:53 PM PDT
Of course the music store is designed for the ipod and only sells
music for the ipod. THAT IS WHAT IT WAS DESIGNED FOR - and
that is why its embedded into Itunes. The music store is pretty
much like an Ipod plug in. I dont use mine much, but others do.
Adobe are not forced to make their plugins compatible to other
graphics software packages. M$ Office Macros are not legally
forced to be compliant with Open Office (Even though Microsoft
has the Office Monopoly)!
Fact of the matter is that Apple is not a monopoly. People do
have the choice. They can buy CDs, buy different music players
and go to different services. That is all your perogative as a
consumer and if they dont because of a lack of choices, then
some company should get out there and provide an alternative
that people want.
Apple have the bulk of the market right now, but it wont last
forever. Technology is fickle. It changes with the wind. Just like
the Sony Walkman that was in the same position two decedes
ago.
Reply to this comment
Europe Welcomes Piracy With Open Arms
by frankz00 June 12, 2006 8:06 AM PDT
That's what the headline should read because once iTunes leaves Europe that is exactly what is going to fill the void. Idiots. They need to invent their own stuff if they don't like what we make!
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