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Intuit Drops DRM from Future Products

MisterKoffee writes "ExtremeTech has a story about Intuit dropping Product Activation and Digital Rights Management for most of its future products, including TurboTax, in response to a customer backlash."

25 of 313 comments (clear)

  1. It was handled badly by unfortunateson · · Score: 4, Interesting

    Effective copy protection -- and frankly, theirs was pretty darn effective, compared to most -- at this point has to be intrusive to actually work.

    The only way around it would be to patch the code to prevent the lookup, and that's more work than your average person is willing to do.

    Theirs certainly was intrusive. Aside from the possible damage to my machine from questionable tactics such as boot-sector munging, their policy of requiring only a single PC being able to use the software is the biggest real objection.

    I have multiple PC's at home. I do most of my work in the living room, but it would be nice to be able to alternately work on my taxes from the upstairs office. No can do, without a second license. At least Micro$oft's Activation method lets you have two copies in most cases.

    If they really want effective copy protection, the product should come with a USB dongle. That's still annoying, because it may cause you to go out and get a hub and still use your other USB devices at the same time, but I'd live with that.

    Would it be fair to then hand my USB dongle to my buddy so he can do his taxes? I'd say yes -- because I would not be able to use it while he has it. Intuit would probably say no. On the other hand, my buddy would probably be more likely to go out and get his own copy for next year.

    Ooh! And give a discount to those who have last years' key!

    That contrasts with their current policy of offering early versions to registered users, and a price usually $20 higher than BestBuy will have just after XMas.

    --
    Design for Use, not Construction!
  2. Good Idea.. by gerf · · Score: 2, Interesting

    This is great, but for a different reason. They're differentiating between those who pay, and those who don't. Those who pay, don't get the DRM. That's very nice. Those who don't, (demo, marketing versions), get it, and can't get rid of it. If this convinces people to pay, without inhibiting them in any way that really matters (especially paying customers), great! This is FINALLY a good application of DRM!

  3. huh? by dauvis · · Score: 2, Interesting

    They expected to see sales growth by adding product activation? I want some of whatever they're smoking.

  4. A little Late... by zoobaby · · Score: 3, Interesting

    They lost my money and my future business because of the tax software registration/lock down fiasco. They showed the software industry about how much the general public will take in terms of software liscensing.

  5. I was a pissed-off Intuit customer by evilpenguin · · Score: 4, Interesting

    I'm one of those people who protested to Intuit. I had purchased the software, so I used it, but never again.

    While I am very glad they have seen the light, there is still their implicit accusation that every single one of their customers is a thief (which, IMHO, is what DRM implies). I'm glad they're dropping DRM, but they should be groveling to their customers. Until they do, I'll be buying from their competitors (that don't use DRM, of course). Intuit should be made to feel pain, and I mean deep hurting where it counts, their bottom line. While the RIAA and MPAA are out there making examples of people, it is time we made an example of Intuit. Despite this turnaround, they should be made an example to the whole corporate world that technologies of control are unacceptable to consumers. If Intuit's revenue were to drop 50%, believe me, it will chill the market for DRM products.

    Here's what I suggest if you, like me, are a user of Intuit software:

    1. If you are a TurboTax user, switch to a competitor next year (one that doesn't use DRM either).

    2. If you are a Quicken user, either switch to something else, MoneyDance, GNUCash, etc., or at least DO NOT UPGRADE. If you seriously think about it, what could a new version do for you that the current one doesn't?

    Hit 'em. Hurt 'em. Teach 'em a lesson.

    No more Intuit products for me. And I have NEVER copied a single product of theirs. EVER. In fact, that's why I'm so angry with them.

  6. Lessons learned from the past by nsayer · · Score: 3, Interesting
    I thought we had already had this whole cycle (copy protection, customer backlash, an escalating battle of attrition on both sides, and finally the realization that it does more harm than good) played out in the '80s.

    Software companies that offer real value for money have little need to resort to copy protection. It's the ones that don't that always wind up resorting to nonsense like copy protection. But, of course, the copy protection lowers the value of their product even more, which simply makes the decision to jump to a competitor even easier. Even Microsoft is starting to see this.

  7. Re:Too late, you lost my trust by nsayer · · Score: 3, Interesting
    I tried H&R blocks software and found no real difference.

    My understanding (perhaps it's merely a rumor I'm repeating) is that H&R Block was going to use the same Cactus crap to protect their software starting in 2003 (that is, for the 2003 tax year which is actually going to be in 2004), but the minute they saw the flap starting over Intuit's use of it they very quickly backpeddled and put on a nice public face (while secretly saying, "there but for the grace of God go we").

    So I guess H&R Block is the lesser evil, but I don't believe they're entirely innocent here.

  8. Re:QuickTax 2003 (in canada) would only let... by Vainglorious+Coward · · Score: 2, Interesting

    "This apple is terrible - it doesn't taste of orange"

    I usually need at least [four prints] because of spotting errors and fixing them up!

    Do I understand you right? You fill in all your info in QT, then print it out to review it, then enter corrections back into QT and print it out again. Rinse and repeat. For the love of all things holy, WHY ARE YOU DOING IT THIS WAY?!? What's the point of using QT in the first place if you're still dependent on paper?

    This is only one step removed from people who insist on printing every email they receive and send (side note : I once worked at an organisation where it was not possible to print from the email application. Guess what - the world didn't end, nobody died, everybody was still able to do their work and we saved a bunch on paper.)

    --
    My next sig will be ready soon, but subscribers can beat the rush
  9. Kinda off-topic but.... by zanderredux · · Score: 4, Interesting
    Here in Brazil, the tax software is provided by the government for free and comes with no use restrictions...

    I wonder if US/Canadian tax software is something more than an plain electronic form

  10. Re:Too little too late by geekoid · · Score: 3, Interesting

    what, they where supposed to read your mind before the institute a new capability?
    Hell, this is a company that is responding to customer complaints. they also posted a removal of the boot sector 'feature' pretty damn quick.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  11. Re:Actually, I'm shocked!! by milo_Gwalthny · · Score: 4, Interesting

    I installed Turbotax on my work computer (well, doing my taxes seemed like work) and then the IT people came and took my machine away because the lease had run out and they gave me a new one. Turbotax was the only software I couldn't reinstall. I know I kept tech support on the line for a least two hours (to activate on a new computer they wanted to know the date I activated it on the first computer: how the heck am I supposed to remember that?), as well as filing a bad review at Amazon and sending a nasty letter to their CEO. I am sure they spent more money on me than they would have saved if I was a pirate.

    That said, I like the software and the fact that they listened to my complaints mean I will probably buy it again next year.

    --
    Milo
  12. does software DRM _cut_ sales? by wfmcwalter · · Score: 5, Interesting
    My job requires me to develop for QNX using their "momentics professional" kit, hosted on windows. QNX chose to protect this with FlexLM, which is in turn protected by some of the Macrovision stuff that Intuit use.

    While the QNX stuff is generally of excellent quality the FlexLM thing is a persistent source of problems. Installation and upgrade have never gone smoothly, with obscure services not starting or being misconfigured by the installer, client authentication going wrong more times than it should (i.e. ever), and occasional file-locking problems that require a reboot. At least in my case, licence management seems to generate as much traffic with the QNX support folks as does their actual product (host and target) in its entirety.

    Worryingly, the licence is bound specifically to one licence server. I _imagine_ that if the machine (a laptop) were destroyed, lost, or updated, then there would be some means whereby I could persuade them to issue another licence, but it's bound to be a sticky point.

    I wouldn't care if everything worked properly and transparently, but it doesn't. My vendor is essentially treating me like a thief and simultaneously making himself look like a bozo (which he isn't - the rest of the QNX stuff is great).

    On the last occasion it took several days to resolve the licence manager issues - had this been at a more critical time then this would have been a dealbreaker. It leaves me with a rather bitter taste in my mouth, and I'd think twice before recommending QNX to another client, purely for this reason.

    So is their bizantine DRM saving them money, or costing them? I think Intuit can answer that for them.

    --
    ## W.Finlay McWalter ## http://www.mcwalter.org ##
  13. I dropped them this year by Anonymous Coward · · Score: 0, Interesting

    Used to be customer, dropped 'em this yr. due to their DRM nonsense.

    Might go back to them, maybe not, found cheaper and better alternatives, thanks, Intuit, for opening my eyes to the world out there.

  14. Re:Microsoft? Take a hint? by Divide+By+Zero · · Score: 2, Interesting

    Intuit responds to customers to survive as a business...it really shouldn't be any different for Microsoft.

    In SOVIET RUSSIA, customers respond to COMPANIES.

    Microsoft has put themselves into a position that they no longer have to respond to customers - customers respond to them, end users, OEMs and third-party software authors alike. New DirectX versions (among other things) drive the video card market. New Windows versions drive new versions of other software, both MS and otherwise. New licenses on MS products drive system costs. Having a ninety-something percent market share will do that.

    --
    Dare to Hope. Prepare to be Disappointed.
  15. Fool me once, by BigChigger · · Score: 5, Interesting

    shame on you. Fool me twice, shame on me.

    They lost me as a customer. Taxcut did just as well for me and I have no reason to go back to TT from Intuit.

    BC

  16. I'd rather switch than fight... by Anonymous Coward · · Score: 0, Interesting

    I used to be a TurboTax die hard. Wouldn't have switched, simply because I knew TurboTax worked.

    This year was different. After having fought with Macrovision BS before (with the Oxford English Dictionary), I decided it wasn't worth the pain.

    And you know what? I discovered a perfectly adequate, less expensive alternative -- TaxAct!

    I may return to TurboTax simply to reward them for correcting their mistake, but I'm not really that sure I want to pay the extra for TurboTax when TaxAct is much less expensive.

  17. So? by buss_error · · Score: 2, Interesting

    By their actions, they called me a theif.

    When I complained, they said the complaint was because I had "other interests" than using the software.

    They ignored my complaints for months.

    They reserve the right to do it again if they want.

    Now why would I give my money to someone that insults and ignores me? Why would they expect me to?
    Nope. I'm gone for good.

    --
    Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
  18. Re:Once again, the market has spoken by Anonymous Coward · · Score: 1, Interesting
    DRM itself is neither good nor bad, but Intuit's implementation was pretty bad.

    I challenge you to name one case -- just one case -- in which DRM is not consumer-hostile garbage. Name just one example of DRM that doesn't rip off the user.

    [silence]

    I'm listening...

  19. Re:Microsoft? Take a hint? by Specter · · Score: 2, Interesting

    Actually, IBM was NOT busted for being a monopoly (in the US that is) in the 70's; they just spent a really long time in court before the whole thing was eventually dismissed. People moaned and whined about what a big bad monopoly IBM was until they lost control of the PC market and everyone forgot about the horrors we'd all suffer if someone didn't do something.

    The same thing is gonna happen to MS; it's just a matter of time.

    Jared

  20. Re:IRS by Anonymous Coward · · Score: 1, Interesting

    There are some risks in this idea, including issues for completely honest taxpayers. When someone uses an offline tax program and submits only the final results, the IRS does not know the various "what-if" scenarios explored.

    Suppose I use an online IRS system and try various legal scenarios in attempt to minimize my tax. Unintentionally, I have reported more information than required, and this could increase my chances of further scrutiny. There's no real risk because I'm an honest taxpayer, but still, an audit is a potential big pain.

  21. Re:Once again, the market has spoken by rjamestaylor · · Score: 2, Interesting

    The ironic thing is that Microsoft is a partner with H&R block w/r/t TaxCut (via MS Money; maybe the relationship is deeper than that). TaxCut initially said it would include DRM like TurboTax but reversed its decision when it observed the backlash against Intuit. Then TaxCut began to trumpet its lack of DRM and, IIRC, gained headway in the market slightly as a result. So, a Microsoft partner made a marketing coup by taking a stand against Microsoftian tactics. The flexible always win.

    --
    -- @rjamestaylor on Ello
  22. an email from Intuit by DuctTape · · Score: 2, Interesting
    A letter to me from the friendly Intuit people (my comments and emphasis interspersed):

    Dear Valued Customer:

    In response to your comments on the implementation of product activation technology in tax year 2002 TurboTax(R) software, I wanted to let you know that Intuit will discontinue product activation in next year's TurboTax desktop products purchased at retail or direct from Intuit.

    We are absolutely committed to listening and learning from our customers. We clearly need to better understand all of our customers' tax preparation needs and how they use TurboTax.

    Okay, here comes the fun part:

    While we remain committed to protecting our intellectual property, going forward, we will only introduce digital rights management technologies that maximize customer experience and preserve customer satisfaction.

    Sounds like this still leaves them the option of going with another form of DRM. Doesn't sound like a total retraction to me.

    Again, thanks for your feedback.

    Regards,
    Tom Allanson, Sr. Vice President
    TurboTax

    So, I wonder what parasite program we can expect to see for the 2003 tax year program? I can hardly wait (...to buy Tax Cut again).

    DT

    --
    Is this thing on? Hello?
  23. Re:Microsoft? Take a hint? by gl4ss · · Score: 2, Interesting

    history anyone? do they really teach only 30 years backwards in the backyard-geek-education-system?

    standard oil trust ring a bell? dissolved on it's own because people found better ways to do it? NO. other examples exist.

    the courts are supposed to keep the monopolies from forming all together, not acting when it's too late. several big mergers have been called off in recent years because of this (they couldn't get permits because it would have created a too big force on the market)or rearranged so that the merging companies sold off certain partions of their companies to not become too big. smart companies try to play nice and not become so out of control that they get chopped up of course, and generally try not to break laws(shocking as it is it's not ok for companies to try to twist the law as far as it will go for profit).

    theres places for necessity monopolies.. on small scale(public services for example). but theres places where it hurts the economy and that's why the laws are like that. it was tried and sentenced to be a bad idea.

    --
    world was created 5 seconds before this post as it is.
  24. Re:Microsoft? Take a hint? by dr00g911 · · Score: 2, Interesting

    I suppose you don't have a landline or have cable running in your market?

    Legal monopolies, and in the cases of Bellsouth and Comcast (YMMV), there's not a humble or self-correcting thing about 'em. Debatably, things have gotten worse in those industries, and I'd wager it's worse in the overwhelming majority of markets in the States. Much, much smaller scale than MS's near-*global* stranglehold, but it's parallel nonetheless.

    Some industries *don't* self-correct after monopoly breakups (Bell Di/Trivesiture comes to mind immediately), abuses or an overwhelming amount of pissed off customers.

    The software industry may be on an alternate track than old-school industry as well.

  25. Re:Once again, the market has spoken by cygnusx · · Score: 3, Interesting

    You cannot do what Microsoft does until you have what Microsoft has -- complete market dominance

    And MS itself doesn't do all of the activation crap in product segments where it's trying to prove itself, or win a PR exercise. Case in point: SQL Server has no activation. Neither does VS.Net.