Disney Licenses MS Windows Media DRM

securitas writes "CNet/ZDNet reports that Walt Disney has licensed Microsoft's Windows Media DRM technology for use in online movie distribution via the Internet. Reuters reports that Disney plans to sell movies online in late 2004 or early 2005, while AP reports that the multi-year license for Microsoft's digital rights/restrictions management and copy-protection software will let Disney distribute content on mobile phones, PDAs and portable media players (mirror). The companies are expected to officially announce the deal later today (Monday)." Conspiracy theorists, start your engines; kidding aside, this is something to watch, as these are two titans of industry.

Comments

Re:Titans yes, monopolies no.

[NixLuver]

The measure of a monopoly is not whether you are forced to buy their products. No one has to watch movies - does that mean it wouldn't be a monopoly if there were only one company? No one has to have a telephone; does that mean that there can't be abuses of the Sherman Antitrust Act by a phone company?

If you think that Microsoft, Disney, or most other large corporations have not violated the sherman Antitrust Act of 1890, you should probably read it. The word 'monopoly' has been bandied around specifically to confuse the issue. Section 2:

Section 2. Monopolizing trade a felony; penalty
Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $10,000,000 if a corporation, or, if any other person, $350,000, or by imprisonment not exceeding three years, or by both said punishments, in the discretion of the court.

"Attempt to monopolize" etc. Section 1 discusses restraint of trade - which this could most certainly be percieved as a step towards, dependin g on how Microsoft and Disney deal with the DRM issues - and with their track record, it's not looking good.

Creating a barrier to entry is what the industry is trying to accomplish with mandatory DRM. If you have to pay a $50 license for DRM, and it's illegal to distribute something (software, os, hardware, or all three) without it, then the Free Software world - and, perhaps, open source - is essentially relegated to irrelevance here in the US. And in any country that would hope to do business with US and the IMF/Wold Bank. Bleah.