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BusinessWeek on Opening Apple's iTunes DRM

hype7 writes "BusinessWeek is running a very interesting story on Apple's foray into music, with a different bent to everyone else's. BW suggests that, instead of opening the iPod up to the world, Apple should instead license its DRM - 'Fairplay' - to anyone who wants to start up a music store. The upside is obvious: it would mean that Apple's music format, AAC, would become ubiquitous; Apple could quite feasibly make money on licensing fees (say 1 cent per song sold); and, it would just happen to stick it to Microsoft and the Windows Media Format. As the iTunes Music Store isn't running at a profit (or forecast to make a big one), having the Music Store clones eat into Apple's existing market share wouldn't be a problem; all these stores would be doing is building a bigger potential market for the iPod."

38 of 489 comments (clear)

  1. AAC by daeley · · Score: 5, Informative

    For the nth time, AAC is not "Apple's DRM technology." It is part of the MPEG-4 specifications. More info here.. To quote:

    AAC was developed by the MPEG group that includes Dolby, Fraunhofer (FhG), AT&T, Sony, and Nokia--companies that have also been involved in the development of audio codecs such as MP3 and AC3 (also known as Dolby Digital). The AAC codec in QuickTime 6 builds upon new, state-of-the art signal processing technology from Dolby Laboratories and brings true variable bit rate (VBR) audio encoding to QuickTime.

    --
    I watched C-beams glitter in the dark near the Tannhauser gate.
    1. Re:AAC by Anonymous Coward · · Score: 1, Informative

      Indeed. There's an open source implementation of FairPlay in VideoLAN CVS.

  2. Re: Apple DRM? by One+Louder · · Score: 5, Informative
    Consider yourself corrected - AAC is not proprietary and is part of the MPEG-4 specification. Apple's DRM wrapper for AAC, called "Fairplay", however, *is* proprietary.

    On the other hand, Microsoft's WMA is proprietary no matter how you slice it.

  3. RTFA by Ogrez · · Score: 5, Informative

    It doesnt say that AAC is Apples DRM.. it says that Apples DRM is called 'Fairplay' and licensing that to others would increase usage of the AAC FORMAT.

    --


    Fire in the hands of the village idiot is no tool, but a weapon of mass destruction
    1. Re:RTFA by cOle2 · · Score: 5, Informative

      FairPlay is actually owned by Veridisc so it may not be up to Apple to choose who to licence it to (if at all).

      http://64.244.235.240/explained_contentprovider.as p

    2. Re:RTFA by farzadb82 · · Score: 5, Informative

      Umm... hate to burst your bubble but VeriDisc's Fairplay is not related in anyway to Apple's Fairplay (see)

    3. Re:RTFA by rabbit994 · · Score: 2, Informative

      True that, for those of you with iPods, click the legal in you settings menu, and actually read it.

  4. Re:If apple want's to win with AAC they have to .. by One+Louder · · Score: 5, Informative

    That's not Apple's decision to make, since they aren't the owners of AAC. And they're apparently smart enough at least to know that, unlike, say, you.

  5. Re:It would be nice, but by wankledot · · Score: 4, Informative
    The iPod doesn't "have DRM" any more than your Dell thing does. It's capable of playing DRM'd tracks from the Apple music store, but you don't have to buy those to use the iPod.

    You're a little defensive about your manliness there buddy, I don't have to choose a certain electronics device to reassure myself that people will think I'm straight.

    --
    My sig is blank, I typed this by hand.
  6. Re:Unfortunately, Apple is too bullheaded... by worm+eater · · Score: 4, Informative

    Having clones to Apple hardware is one thing and I can understand Steve killing that idea but this is so totally different. Steve readily admits that iTMS is not a breadwinner. But Steve is a just a bit too protective still to license FairPlay.

    ...but they already did license the hardware for the iPod to HP. Seems like it would be a lot easier to license out the DRM tech than the precious iPod.

    --
    Maybe partying will help...
  7. Re:So... by One+Louder · · Score: 4, Informative

    An online store that wants to sell to iPod users merely has to provide the music in MP3 or unprotected AAC, since the iPod will accept both of those as well as Fairplay-protected AAC. You'd probably have to provide your own client to buy the music, and then use the scripting interface for iTunes to load it onto the iPod.

  8. Re:AAC is open source! by wankledot · · Score: 3, Informative
    *sigh*

    AAC is not "open source" You still have to pay to license it.

    --
    My sig is blank, I typed this by hand.
  9. AAC is proprietary by Anonymous Coward · · Score: 1, Informative

    AAC is proprietary. You must purchase patent licensing if you want to legally use the format.

    1. Re:AAC is proprietary by the_2nd_coming · · Score: 3, Informative

      umm.. under a patent is not the same thing as proprietary under copyright.

      a patent purchase allows you to see the underlying parts, and even allows you to mess with the stuff (though it this case it really is not an issue)

      a copyright purchase only gives you the ability to USE the technology with out seeing the parts.

      --



      I am the Alpha and the Omega-3
  10. Re: Apple DRM? by Anonymous Coward · · Score: 2, Informative

    Cheatsheet for this article:

    AAC -- must licence from MPEG
    WMA -- must licence from Microsoft.
    MS DRM -- must licence from Microsoft.
    Apple FairPlay -- can't licence from anyone.

    So, please, let's quit pissing-n-moaning about "proprietary" -- this is all business.

  11. Winamp Plays FairPlay Tunes by lotsofno · · Score: 3, Informative

    Just so you all know, Winamp, being the awesomely versatile player it is, CAN play AAC songs with Fairplay DRM attached, with this convenient plug-in. Of course, there are many limitations still, but that's proprietary DRM for you.

    You can chart and discuss the plug-in's progress here. The older, "officially released" version of the plug-in with brief descriptions and reviews is here.

    BTW, Winamp 5.03 is already out, in case you weren't informed.

    1. Re:Winamp Plays FairPlay Tunes by lotsofno · · Score: 3, Informative

      Sorry, I messed up all my links... You can get the plug-in here, to play AAC files with FairPlay, on Winamp. Feel free to mod the previous post down.

  12. Re:Apple's DRM by jcain · · Score: 5, Informative

    If you send an email to iTunes Support, and ask them nicely, they will de-authorize all the computers on your account automatically. Just tell them you no longer have the computers you authorized and cannot de-authorize them the normal way.

    Worked for me.

  13. Re:Unfortunately, Apple is too bullheaded... by awtbfb · · Score: 4, Informative

    But Steve is a just a bit too protective still to license FairPlay.

    There is precedent for Apple successfully licensing something of this nature: Firewire.

  14. Re:DRM Online Music by Have+Blue · · Score: 2, Informative

    Most albums with more than 10 songs on them are $10.

  15. Re:If apple want's to win with AAC they have to .. by American+AC+in+Paris · · Score: 2, Informative
    But, I highly doubt that apple has the leadership that would make such a smart decision.

    *snerk* Yeah, Apple sure has suffered lately under their boneheaded, non-visionary leadership.

    Hell, if they get any worse, their competitors are going to have to start going out of business just to keep from humiliating Apple...

    --

    Obliteracy: Words with explosions

  16. Or... You Could Just Get The Non-DRM MP3s by meehawl · · Score: 4, Informative

    All hail FatWallet:

    Here are some legal (in Russia!) MP3 download sites - most flat fee:

    allofmp3.com
    This site is locally legit and songs can be downloaded for as little as $0.01 per MB. That's around 3 cents per song.

    DELit
    Unusual emphasis on hard rock and metal acts (east European and Russian youth apparently worship metal acts)

    3MP3.ru
    $4.55 per month for unlimited downloads.

    And you are not stuck with the typical iTMS low-quality 128Kbit file. Most of the Russian sites let you choose your quality and give you the option to do "online encoding" where you can select the settings you want. When the pop up screen shows up you can hit switch to advanced mode toward the bottm and you get the following options:

    You can choose between the LAME or BLADE codec and 128, 160, 192, 256, and 320 kbps for each (constant bitrate). Or you can choose LAME variable bitrate at 128, 160, 192, or 256.

    If you enjoy these services, 3MP3 should be your first stop to see if you can find what you are looking for at the lowest price. Then I'd move to allofmp3, followed by clubmp3.ru, and then DELit.

    Cue the "In SOVIET RUSSIA" trolls now...

    --

    Da Blog
    1. Re:Or... You Could Just Get The Non-DRM MP3s by cpt+kangarooski · · Score: 4, Informative

      Of course there is a problem in that legal in Russia doesn't necessarily mean that it's legal for Americans in America to use those. In fact, it pretty likely isn't legal here, because all claims to the contrary, 17 USC 602 probably doesn't apply at all.

      --
      -- This and all my posts are in the public domain. I am a lawyer. I am not your lawyer, and this is not legal advice.
  17. Re:It's all about control: BannedMusic.org by syphax · · Score: 2, Informative

    The only reason iTunes has DRM in the first place is because the major labels insist on it: they like their paying customers to have more restrictions than the folks that are getting it for free, makes sense right?

    I love that logic. I think Apple's DRM is the least odious of what's out there, but it's still too restrictive for me. Adding any arbitrary constraints just seems so... ludicrous in terms of the customer's ability to enjoy the product.

    I stick with Emusic, b/c the price is reasonable (40/month / $10/month -> $0.25 per song), and there are no DRMs (just MP3s of decent quality). Of course, you've never heard of most of the artists (with a few notable exceptions- George Carlin comes to mind), but there's a lot of good stuff there. I don't widely share what I download- why would I bother when it's available at a reasonable price?

    In terms of $, I currently spend much more at Emusic than I do for any other source of music, and am reasonably happy with it.

    --
    Simple Unexpected Concrete Credible Emotional Stories
  18. Favortie quote from the article... by microcars · · Score: 4, Informative
    It seems obvious that Glaser has never actually used an iPod.
    Otherwise he never would have said this:

    "The only way to presently put songs on an iPod is to (buy) them from iTunes," Glaser said, ...."
    --
    I like microcars
  19. Re:it doesn't matter by nsayer · · Score: 4, Informative
    AAC is suuposedly not a lossy format



    Um, no. AAC is a lossy format. If you burn it to CD, then rip it and re-AAC it, you get something not quite as good as the original.

  20. Re:DRM Online Music by rfovell · · Score: 2, Informative

    And really, 99c for a song isn't even that great of a deal. That makes a 15 song cd = $15.

    When you visit iTMS you will see that most albums having more than 10 tracks have prices capped at $9.99. Yes, there are counterexamples (Kitaro's "An Ancient Journey" is $18.81, the aggregate cost of the individual tracks), but they strike me as quite rare. I noticed a few albums are actually less than $9.99, and those have 9 or fewer tracks.

    So, FYI, your blanket statement "That makes a 15 song CD = $15" is far more often incorrect than correct.

    --
    Every rule has an exception (except this one).
  21. AAC, FairPlay, and Apple by maggard · · Score: 4, Informative
    OK, cutting through the assumptions already posted, and folks who couldn't be bothered to actually read the article before posting...
    • Yes, Apple's music files are encoded in AAC.
    • Yes, AAC is an open standard, in that it is publically documented (for a reproduction fee to ISO), just not a free one, patent-wise or royalty-wise.
    • Apple's AAC files are then protected with DRM using Apple's FairPlay (if this FairPlay is related to VeriDisc's FairPlay is unknown, Apple lists FairPlay under their Apple's copyright).
    • If folks had bothered to read the article the DRM opportunity is pretty much what it was about, not the AAC format. FWIW FairPlay could be applied to mp3's too.
    • As DRM goes FairPlay is pretty liberal and there have been few problems (Cory Doctorow's consistantly forgetting to un-license machines aside)
    • Can FairPlay be broken? Probably, there are ways at getting to the AAC files via Apple's freely distributed QuickTime architecture (this is what iTunes uses).
    • There's also the trivial exercise of using iTunes to burn a CD then re-ripping the music. Of course the music has then been lossily encoded twice, with different encoders, so it's sorta like listening to a copy of a tape of a FM broadcast.
    • Ultimately though at US$1 a song & US$10/album most folks appear willing to own the music legitimately. Furthermore Apple has made it absurdly simple to share music locally via their iTunes software so most dorm & office style needs are handled that way.
    • Of course, the article pretty much ignores if Apple wants to be in the Music or IP licensing business at all. They only gave MS their previous Apple-IP license when their mutual lawsuits seemed deadlocked for eternity. The Mac licensing program cannibalized their own sales before it was killed off, their FireWire licensing plan shot itself in the foot, there doesn't even seem to be much co-branding like used to happen with special speakers and such for Macs. These days Apple seems pretty intent on only doing things that directly support selling, or at least evangelizing, Mac hardware.
    --
    I don't read ACs: If a post isn't worth so much as a nom de plume to its author then I wont bother either.
    1. Re:AAC, FairPlay, and Apple by Senjutsu · · Score: 0, Informative

      Can FairPlay be broken?

      It was cracked. Months Ago. By DVD-Jon, originally.

      A guide to unencumbering your iTMS purchases can be found here.

  22. Re: Apple DRM? by frankie · · Score: 4, Informative
    Apple FairPlay -- can't licence from anyone.

    Nope. How about you let me handle this:

    • AAC: codec for mp4 audio (m4a) -- license from MPEG-LA
    • WMA: audio wrapper format -- license from Microsoft
    • WMRM: DRM used by WMA et al -- license from Microsoft
    • FairPlay: DRM used by ITMS (m4p) -- license from Veridisc

    Note1: as you can see, Alex Salkelver at Business Week clearly didn't do his homework before writing that article.

    Note2: the folks at Veridisc are astonishingly incompetent at e-business: they own neither veridisc.com (unrenewed, squatted, not work-safe) nor fairplay.com (unowned, parked)

  23. Re:Unfortunately, Apple is too bullheaded... by mbbac · · Score: 2, Informative

    ...or Rendezvous.

    --

    mbbac

  24. Re:Unfortunately, Apple is too bullheaded... by Wesley+Felter · · Score: 2, Informative

    And who invented IEEE 1394? A bunch of Apple engineers.

  25. Re:Unfortunately, Apple is too bullheaded... by Anonymous Coward · · Score: 2, Informative

    It's a standard that was submitted to IEEE, yes... but it is a standard that was submitted by Apple Computer, who invented it.

  26. ReRipping iTunes music to/from CD... by green+pizza · · Score: 2, Informative

    There's also the trivial exercise of using iTunes to burn a CD then re-ripping the music. Of course the music has then been lossily encoded twice, with different encoders, so it's sorta like listening to a copy of a tape of a FM broadcast.

    You haven't done this before, have you? The sound quality is lower, but it's not *that bad*. I would compare the original to CD quality and the re-ripped / twice-encoded version to FM radio quality (and really, no worse than most of the less common pirated MP3s floating around in cyberspace).

    Here's what I noticed about the quality difference:
    I started off with a song bought via iTunes... sounds great via my iPod and via the stereo connected to my PC. I burnt a playlist of my songs to CD. I then ripped the songs back into iTunes, encoding as 192kbps AAC. Playing back the song, it sounded just as good as the original... or so it seemed to me at first. I then played the original.... a-hah!... in a back-to-back comparison, the original sounds much better... but its not something you will really notice otherwise.

  27. Re:While... by Sparks23 · · Score: 3, Informative

    All the rest of the comment aside, since I don't feel like getting into an OS jihad -- every OS has its strong and weak points, and will have people who argue against it solely on emotional reasons -- you nonetheless make a mistake which has been made very often lately.

    You ask 'where are open standards when you need them?' The answer is, right where you're pointing. :)

    AAC is /not/ propriety. It stands for 'Advanced Audio Coding,' and is part of the MPEG-4 specification. It is an open standard, with an ISO document and everything; it's basically the successor to MP3, from the MPEG working group. AAC is no more 'associated with Quicktime' simply because Quicktime can play it than MP3 is 'associated with Nullsoft' simply because WinAmp plays MP3. (For that matter, Quicktime plays MP3s, and WinAmp can play AAC.)

    Now, admittedly, the DRM which Apple uses is /not/ an open standard, but it /is/ licensed from somewhere else, part of a suite called Fairplay and Veridisc, which about 5 minutes of poking around on the web informed me could be licensed from Circle Group Internet, Veridisc's parent company. It looks like Fairplay is designed to wrap /any/ digital audio -- be it AAC, Ogg Vorbis, MP3, whatever -- and as if anyone who wants can license it.

    The reason some folks (including me) happen to like Apple is that they've been very supportive of open standards. Their nifty 'Rendezvous' discovery protocol is simply an implementation of the open 'zeroconf' protocol. Their iChat video and audio chat are based all on completely open standards which anyone can implement if they wish (though it does use AIM for the initial negotiation, alas). Etc.

    --
    --Rachel
  28. Re: this wouldn't hurt by ennerseed · · Score: 2, Informative

    The incentive is that the songs would play on other devices... The drm would be open, the songs could be on any device, or software audio player that supported the drm.

    --
    "If we knew what it was we were doing, it would not be called research, would it?" - Albert Einstein
  29. Error Bars - No Winners There by meehawl · · Score: 2, Informative

    Oh yeah, AAC won the listening test over here too : http://www.cdfreaks.com/news/9217

    You know these particular "results" were discussed recently in /. at great length. If you look at the "winners", you will see that none of them "won" by a greater margin than their inherent error bars or confidence measures. Therefore it is incorrect and unsupported to say that any particular codec "won". Have you ever taken elementary stats?

    --

    Da Blog
  30. Re:While... by Ohreally_factor · · Score: 3, Informative

    I just wanted to add that Apple did more than implement ZeroConf in Rendevous. They played a major part in developing Zeroconf.

    I've also written to the CEO of Veridisc, Gregory Halpern, with some questions about Fairplay. I'll post to slashdot if I get a reply.

    --
    It's not offtopic, dumbass. It's orthogonal.