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Antitrust Suit Filed To Halt Apple 'Music Monopoly'

Dotnaught writes with word of an anti-trust lawsuit filed against Apple late last month. Information Week has the story, a suit charging the company with maintaining an illegal monopoly on the digital music market. "The complaint goes beyond software licensing politics and charges Apple with deliberately designing its iPod hardware to be incompatible with WMA. One of the third-party components in iPods, the Portal Player System-On-A-Chip, supports WMA, according to the complaint. 'Apple, however, deliberately designed the iPod's software so that it would only play a single protected digital format, Apple's FairPlay-modified AAC format,' the complaint states. 'Deliberately disabling a desirable feature of a computer product is known as crippling a product, and software that does this is known as crippleware.'"

34 of 510 comments (clear)

  1. Wow by cbrocious · · Score: 4, Insightful

    These people need to learn the difference between codecs and DRM schemes. WMA support means the hardware can decode it, not decrypt the data. You're going to force Apple to license Microsoft's DRM? That's retarded.

    --
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    1. Re:Wow by Rosyna · · Score: 5, Funny

      You're going to force Apple to license Microsoft's DRM? That's retarded.


      Yup. The solution to Apple being accused of being a monopolist is to have them license DRM from a convicted monopolist. Seems simple enough.
    2. Re:Wow by dgatwood · · Score: 4, Informative

      Worse than that, "support" for WMA in a portable player chipset doesn't generally mean the hardware can decode it by itself. It means that the hardware has enough memory and enough DSP horsepower to decode it when combined with an appropriate software codec. This is a case of licensing or not licensing the WMA codec, not just the crypto. It would almost certainly have cost Apple money on every iPod to support even the unencrypted WMA. This isn't something you get for free just by using a particular piece of hardware....

      I would also hardly call WMA support "highly desirable". Among Microsoft employees who have portable music players, the iPod market share is reportedly 80%. If it were so desirable, don't you think at least Microsoft employees would favor Zunes because they support WMA? I think we can safely establish that at least as far as consumers are concerned, WMA support is not desirable. As far as consumers are concerned, a WMA file, an MP3 file, and an AAC file are all the same thing as an AIFF file. Most consumers just don't care. Expecting a hardware vendor to pay extra money on every unit for a feature that few users care about is silly, and I can't imagine how much crack their lawyers must have been smoking when they took on such a frivolous case.

      If they were doing something useful like suing for the right to sell FairPlay songs, that would at least make sense, but suing because Apple didn't pay to license the WMA codec is about the most asinine lawsuit I've ever heard of. This makes the SCO lawsuits seem positively sensible by comparison....

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    3. Re:Wow by vought · · Score: 5, Informative

      The PP5002c used in the first three generations of iPod (and the PP5003 used in the fourth) does indeed decode WMA.

      It also has a USB interface. But the first two generations of iPod don't.

      The PP5002c can decode video. But no iPods until the fifth generation did so.

      The PP5002c also had lots of other logic in it that wasn't used by Apple. I can't possibly see how this is supposed to be an argument that Apple was supposed to support WMA.

      Another harassment suit. I hope it gets kicked out of court quickly.

    4. Re:Wow by vought · · Score: 5, Interesting

      It means that the hardware has enough memory and enough DSP horsepower to decode it when combined with an appropriate software codec. This is a case of licensing or not licensing the WMA codec, not just the crypto. IIRC, the PP5002c was sold as a standalone chip to Apple, but Portal Player was trying to sell an entire OS/Chip solution. Apple sourced the iPod's first OS from Pixo, so there was no WMA built into it - and it's also why Portal never wanted to acknowledge Apple being a customer (when I contracted for them, we were not allowed to mention Apple, only the customer named "Baseband"). Because Apple didn't use Portal's entire solution, they were not someone portal wanted to talk about.

      Also, if I recall correctly, the PP5002c and PP5003 were simply dual ARM7 TDMIO chips with some glue and interface logic. There's nothing there that would play WMA.

      This case is baseless, groundless, and sure to get paid to go away.

    5. Re:Wow by SharpFang · · Score: 4, Funny

      The nice, simple and cool alternative is if iPods were mp3-enabled. No DRM. Songs from any source can be used, except of few chosen ones that use DRM ;)

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    6. Re:Wow by HardCase · · Score: 4, Funny

      Dumbest, article, ever.

      Clearly you weren't around during the Jon Katz era.

    7. Re:Wow by Em+Adespoton · · Score: 4, Insightful

      The nice, simple and cool alternative is if iPods were mp3-enabled. No DRM. Songs from any source can be used, except of few chosen ones that use DRM ;)
      I agree! We need a portable digital audio player that can do this! Like, say, EVERY SINGLE iPOD EVER MADE. The DRM is in the iTunes store, not the iPod. iPods can play MP3 just fine, as well as DRM-free AAC, Apple Lossless, and a number of other audio formats. The lawsuit is arguing that Apple DRM is the only DRM the iPods will decode; they won't decode Corporation X's scheme.

      In order for this to be an issue at all, there needs to be a DRM scheme that is an open standard. Currently there isn't, so the lawsuit has exactly 0 legs to stand on. Apple decided to create their own DRM instead of licensing and implementing the DRM of a convicted monopolist who tends to randomly deprecate their old DRM products. The only thing Apple has a monopoly on is DRMed tracks on their music system. Apple sells DRM-free music, and DRM-free music from anywhere else can also be loaded on an iPod in a number of industry standard formats.

      That said, I don't own an iPod as it doesn't have the feature set I want. I have no problems with Apple's iPod/iTS product offering though. It might be anticompetitive, but it isn't illegal and it definitely is not monopolistic. That'd be like saying Apple iMacs are monopolistic because they won't play DRM'd WMV files.

    8. Re:Wow by samkass · · Score: 5, Informative

      From Apple's page:

      Audio formats supported: AAC (16 to 320 Kbps), Protected AAC (from iTunes Store), MP3 (16 to 320 Kbps), MP3 VBR, Audible (formats 2, 3, and 4), Apple Lossless, WAV, and AIFF

      Only one of the 7 formats is DRM'ed (ie. "locked"), and only 2 have any sort of Apple proprietary nature to them (Apple Lossless and the FairPlay DRM'ed AAC). They shouldn't be forced to adopt a competitor's DRM. And Amazon proved you can create an online service compatible with the iPod.

      In short, they'll get thrown out of court.

      --
      E pluribus unum
  2. Apple's response... by ashitaka · · Score: 4, Funny

    Sosumi

    --
    If you don't want to repeat the past, stop living in it.
  3. Standard or proprietary by ktappe · · Score: 5, Insightful

    The suit might have merit if the iPod would not play MP3 files or some other standard format. WMA is not a standard--hell, the "W" stands for "Windows" for crying out loud. Can Microsoft be sued for not supporting "Apple File Protocol" or some other Apple-specific protocol?

    --
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  4. You can macro these headlines by Quiet_Desperation · · Score: 4, Insightful

    $SUCCESSFUL_COMPANY sued for $OVERHYPED_REASON by $MONEY_HUNGRY_LAWYERS for $SOME_SCHLUB_WHO_AGREED_TO_BE_LAWYER'S_MARK

    Lather, rinse and repeat.

  5. they just aren't paying attention, are they? by acroyear · · Score: 4, Interesting

    When the market is demanding, and receiving, DRM-free tunes at amazon, iTunes, and a number of smaller label-run sites (Deutsche Grammophon and Naxos, for example), the restrictiveness of one product to not play another's deprecated and irrelevant format is a rather trite thing. As far as I know, there's never been a precedent for "incompatibility" unless there's a contract violation clause to attach it to.

    If they really want to solve the incompatibility problem, they should go out and sue HD-DVD and Blu-Ray device makers for not making players that can read both formats. Or how about a video game maker that only makes his games on PS2 and not on XBox or WII? or the other end, how about suing Microsoft for not being able to play Sony PS2 games...

    --
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    -- Joe
  6. I must have been in a transporter accident... by glindsey · · Score: 5, Insightful

    ...because that's the only way I can explain this mirror universe where DRM proponents are arguing that a product barring them from crippling your ability to do what you want with your music is itself "crippleware".

    Scotty, for the love of God, get me out of here.

  7. Re:This is /. by oahazmatt · · Score: 4, Funny

    Microsoft bad
    Apple good
    Linux great
    Fire bad
    Microsoft + Fire neat.
    --
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  8. Since when by Altus · · Score: 4, Insightful


    is playing WMA files considered a desirable feature in a portable music player?

    --

    "In America, first you get the sugar, then you get the power, then you get the women..." -H. Simpson

  9. Re:Spluh by Romancer · · Score: 5, Interesting

    And kinda funny since the Zune shipped without support for Microsofts own "Play for Sure" music.

    Where do these people get this stuff?

    Shipping a product without support for a desirable format? WTF? This is the whole reason we have the choice to buy hundreds of other brands of mp3 players that support both wma and ogg and mp3 as well as iTunes. I see no monopoly here.

    --


    ) Human Kind Vs Human Creation
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  10. A monopoly is not magically illegal. by jpellino · · Score: 4, Insightful

    What is illegal is to use that monopoly position to unfairly exclude others from the marketplace.
    iPods have been unable to play WMA since when there was only one iPod. The condition precedes any monopoly.
    Microsoft is in fact in the marketplace and makes a very brown player that plays WMA just fine.
    Stacie is perfectly free to buy one of those.

    Next?

    --
    "Win treats sysadmins better than users. Mac treats users better than sysadmins. Linux treats everyone like sysadmins."
  11. Re:Rubbish by dgatwood · · Score: 4, Insightful

    As long as the consumer is fully in control of whether to choose the product or its alternatives, there is no monopoly, regardless of how many units are sold. What makes something a monopoly is the lack of "close substitutes". Clearly, that is not the case for the iPod. You may not like the appearance of other players, but there are plenty of them out there, and they are at least reasonably close substitutes. People choose the iPod because either they believe it is the best choice or they think it is hip or they have had bad experiences with other companies' products or... lots of reasons, but the lack of reasonably usable alternatives is not one of them. iPods aren't even the cheapest players out there, so you can't even argue that Apple's volume makes it impossible to compete well....

    The fundamental flaw with any argument based solely on number of units sold is that there is no real iPod lock-in. With operating systems, you are pretty much locked in. The cost of buying new software to support another OS is huge, plus there are all the compatibility problems with files, etc. With music, you have a choice. You can choose to buy music from the iTunes Store if you want, knowing full well that you will have to burn to a CD and have a little quality loss if you want to move to a non-Apple player, but you can also choose to buy DRM-free music on CD, from Amazon, or even some selections from the iTunes Store. I could switch to any other player right now if somebody came out with a better one. I'd have to spend a few hours converting my protected AACs to unprotected AACs (burning to a CD and ripping it), but I could do it. The barrier to switching is basically zero, and other alternatives exist. Thus, no monopoly. Simple as that.

    Caveat: IANALBIPOOSD.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  12. Re:Spluh by Oliver+Wendell+Jones · · Score: 4, Interesting

    If your mp3 player doesn't load as a "mass storage device" and let you just swap the materials back and forth, then YOU BOUGHT THE WRONG PLAYER.

    Yeah, because every time I turn on my device I really want to wait while it scans the ID3 information from 40 GB of MP3 files before it can display a menu of available tracks... that kind of logic worked great in the days of 128 MB flash players, but doesn't keep up with current tech very well...

    --
    A computer once beat me at chess, but it was no match for me at kick boxing -- Emo Phillips
  13. Re:Spluh by vux984 · · Score: 4, Insightful

    If your mp3 player doesn't load as a "mass storage device" and let you just swap the materials back and forth, then

    YOU BOUGHT THE WRONG PLAYER.


    Err... I bought an ipod precisely for the extra features, like smart playlist syncing, collecting play stats, being able to rate songs on the ipod itself, create multiple playlists with overlapping songs but only have one copy of the song on the disk, etc, etc.

    All that pretty much requires the ipod style 'database'. I don't -want- to swap the materials back and forth manually. TYVM.

    I -do- agree it sucks that music is sort of hidden on the ipod, and can't be played if its not in the ipod's database, and would welcome the ability to rebuild the ipod database on the fly as a feature addition. And there are other features I'd add too.

    But between choosing manual song and folder management vs ipods way... I choose the ipod. No question.

  14. Re:Spluh by Toonol · · Score: 4, Interesting

    My own experience is that the cheaper the electronics, the more off-brand, the more useful it is. Apple? Sony? Microsoft? They do what they can to squeeze you into certain formats, certain online stores, etc...

    But the $20 mp3 player from a chinese manufacturer I've never heard of before or after... well, that can play almost everything. Drop files into the drive and it'll play them. Same holds true for DVD players and video formats.

  15. "Imaginary Property" by DrYak · · Score: 4, Interesting

    An iPod clone, the Medion Jukebox, was built using the exact same chip and stuff and indeed it did play WMA.


    As said by other, iPod's chip would have the technical capability to play WMA.
    BUT then Apple doesn't necessarily have the needed license to implement support for MS's IP.

    That, specially from the point of view that, Microsoft's agreement in the "PlaysForSure" certification campaign forbids the player to support other formats except MP3 and WMA. (Which also eplains while in europe one can find a lot of devices playing OGG/Vorbis but not in the US where the device aren't allowed) And in addition PlaysForSure mendate an obscure and stupid protocol (a microsoftish hack around the Picture-Transfer-Protocole) for communicating with the device, whereas the iPod use plain simple mass storage and can work as an external hard disk too (except that the music is stored in an invisible folder).

    This, had Apple decided to implement WMA (by simply turning on a function already available into hardware) they would have been forced to remove support for other formats namely the AAC around which their iTunes store is based, and switching away to a protocol that made the iPod a popular data-transport device.

    Besides failing to support WMA doesn't make a monopoly. If we take into account all the compressed music file that circulated everywhere (on the net, on peer-2-peer networks, on embed device for various tasks including ringtones, etc)
    MP3 is by far the most widespread standart.
    AAC (iPod), WMA (Zune+PlaysForSure), ATRAC (Sony), Real Audio (Early webcasting), etc... all represent a tiny fraction next to the omnipresence of MPEG Layer III (and its ancestors).
    And if people are complaining that the install base of linux is too low to be worth considering, I can't see why then people complain about some format that only represents a microscopic fraction of the market and is completely over shadowed by MP3.
    All the others are only specific formats that are exclusively used between some proprietary music stores and corresponding audio players, and thus only exist in specific scenarios. The GSM codec (used in cell phones) is maybe the closest thing that comes in term of frequency of occurrence.
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  16. Re:Spluh by badasscat · · Score: 4, Funny

    You could just organize your music in a meaningful way. I'd suggest Artist - Album/# - Title.Extension.

    I've been doing this for ages with 25 GB of music on my iPod, and just use Amarok to generate playlists (plain M3U), and Perl scripts to adjust them accordingly.


    That sounds so much easier than just dragging my mp3's into iTunes and, well, being done.

    Oh wait, no it doesn't.

  17. Re:Spluh by CleverBoy · · Score: 4, Insightful

    But you WOULD be forcing a company to ADD something.

    You may want to note that the chip allows the real-time decoding of WMA. This is so that WMA doesn't need to rely on the software to do all of the decoding work (which in essense makes playback on an otherwise less capable CPU possible or cuts down the CPU cycles necessary thus conserving power use).

    In order to take advantage of this capability, you need to write software that accesses it. Moreover, if you introduce support for that format, you'll need to support it long after you decide not to use a particular chipset and lose the extra advantages that it supplies.

    Before you go around believing the nonsense you read in a frivolous lawsuit (that not supporting all the features of a chipset is tantamount to DISABLING said features)... you should stop and think whether it even makes logical sense.

    Right? You're mixing up SOFTWARE with HARDWARE.

  18. Re:Really by Divebus · · Score: 5, Insightful

    WMA is a proprietary format also, with or without DRM. So, Apple not interested in paying royalties to Microsoft for WMA capability is monopolistic? Unless Microsoft is giving it away for free, that doesn't sound like a case. Why not sue Warner for monopolizing their own catalog? Or EMI?

    Trolls

    --

    Most of the stuff on /. won't survive first contact with facts.
  19. Re:Spluh by xigxag · · Score: 4, Insightful

    I suspect that some of the reason the small off-brand manufacturers devices are so useful is because they don't bother with such insignificant details as licensing (and the requisite fees). So they don't have to disable features the content "owners" don't want you to have. Really, they're hardware versions of allofmp3.com

    And let's be fair. The iPod got huge by being useful to a hell of a lot of people, namely the vast majority that wants a round-edged managed experience. If the $20 player was useful to the masses, it would be #1 on the market. But, in cutting corners, they also tend to cut out things like english-language manuals, product testing, ergonomics, etc. You might not be able to drop a XviD onto your iPod, but download a video from iTMS, and you know it will work, period. Meanwhile, your XviD might or might not work on the off-brand player, even spending an hour with the conversion software.

    --
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  20. Re:Spluh by Malevolyn · · Score: 4, Insightful

    I find it strange that everyone's saying that Apple is actively disabling support for WMAs, like it supports them natively. Correct me if I'm wrong, but it's not like the iPod is using fmod. Therefore, the more accurate description would be that Apple is actively not adding support for the WMA format.

    I don't see the 360 supporting Wii software anytime soon, and I don't see how that's much different.

    --
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  21. Re:Really by troll+-1 · · Score: 4, Informative

    Apple is not interested in paying royalties to Microsoft for WMA

    Is that what the plaintiffs are asking as a remedy?

    I think perhaps it's more about why there are no 3rd party iTunes stores?

    Apple may have a better product than Microsoft but I'd be interested to know how the Sheman Antitrust Act applies differently to Apple than it did in The US vs Microsoft antitrust case when Microsoft excluded Netscape from its desktop. The question in law is how is Apple controlling the hardware and the content different from say Standard Oil controlling the product and the distribution system (i.e. the railroad). My guess is that this is not a trivial suit. A lot of people with ipods resent having itunes as their only option. I think that's what this suit is about. And no matter how you feel about Apple's right to exercise such control, the law on the matter may be entirely different.

  22. Re:Spluh by vux984 · · Score: 4, Insightful

    Alright, I'll bite...

    So if I set up rythymbox, and have it sync to a 'mass storage player' like, say, a Sansa. I can set up a smart playlist that will rotate songs based on the songs 'star rating', 'play count', 'last played date', and 'skip count'?

    -and- (and *this* is the important part)

    When I go off and listen to my "mass storage player" for a few days, and plug it back into my rythymbox, all that play data will sync back into rythymbox, so that it can update the playlists based on:

    a) what, when, and how often I listened or skipped a track *ON THE DEVICE*
    b) any ratings adjustments I made to the song *ON THE DEVICE*

    The last time I tried a non-ipod, the above features, which I now view as critical, were not even close to available. And according to the research I -did- do, these features -require- an itunes like 'database' because a lot of that meta information I base my smart playlists on is not stored in the actual songs.

    Now, I'm sure a 'rythymbox' type program could create its own meta-data databse, while still letting me move songs around 'manually'... but unless the player itself updated that database of meta-information as I used it, there wouldn't actually be much point.

    I'd welcome finding out I was wrong... but as far as I know, only the ipod can currently do this.

  23. Re:Really by NaugaHunter · · Score: 4, Funny

    I think perhaps it's more about why there are no 3rd party iTunes stores?

    They're called 'buy the CD and do it yourself'. There's probably a store in your town!

    --
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  24. Re:Really by Divebus · · Score: 4, Informative

    The general music catalogs are available from other sources. It's not like iTunes/iPod prevents people from listening to music in other ways.

    If you really examine the issue, WMA with DRM is the odd duck here, not iPod/iTunes.

    • An iPod is first and foremost an MP3 player. The iTunes Music Store is optional to use - or not use.
    • The iPod plays standard AAC (not dissimilar to Dolby Digital or AC3 as found on every DVD Video), WAV and AIFF (plus Apple Lossless files).
    • iTunes itself will import unprotected WMA and allow you to use that on your iPod.
    • You can load the iPod from competing stores like AmazonMP3 and eMusic and iTunes does not disallow the media.
    • If you use iTMS (which also offers a range of unprotected AAC files), there's an exit door from FairPlay through burning industry standard Red Book CDs from the encumbered purchases.

    So, what's the issue again? In a nutshell, iPod/iTunes is a relatively flexible platform on either Macs or PCs.

    The IE-Microsoft-Netscape issue was about bundling IE into the operating system as an "inseparable" component. That along with a hundred other abuses surrounding Java, QuickTime, Real Media, bullying vendors, exclusive contracts etc. led to the conclusion that Microsoft was a treacherous monopolist.

    --

    Most of the stuff on /. won't survive first contact with facts.
  25. Re:Really by markk · · Score: 4, Insightful

    Uhm... It does apply to Apple. they aren't a monopoly. I can buy a song at Amazon right now and load it on my iPod. So is that not a 3rd party "iTunes" Store?
    I can buy EMI songs on iTunes right now and load and play it on a Zune. Apple obviously controls the hardware IT MAKES, but I don't see lock in anywhere
    except with the DRM that the CEO of Apple is on record that he would like to get rid of. That is mandated in contracts with producers.
      If Apple is a Monopoly with its DRM then all DRM is a monopoly. I would like to agree with this, but by definition, it isn't.

  26. Re:Really by jthill · · Score: 4, Informative

    Microsoft had no monopoly in browsers when they started. Microsoft had a desktop OS monopoly. They leveraged that to kill a company whose product might, someday, indirectly have hurt their desktop OS profits. The specific leverage they applied was to sink massive resources into developing a high-quality browser, and ... not only give it away free, but threaten to hurt other companies dependent on them for making products that worked with Netscape. They lost money hand over fist on the effort.

    The assertions above are not rhetoric. They're fact. Hunt up the words "malevolent" and "obsessive" in that link. When the Netscape threat was gone, Microsoft virtually abandoned browser development.

    Apple had no monopoly on MP3 players or desktop OS's when they started. Apple used no leverage of any kind. They used high-quality industrial design and user-interface research, attention to detail, superb marketing and smart partnerships to earn their present spot on top of the market. They have not, ever, even once, stopped adding new capacity and features on to the iPod. The iPod has been phenomenally profitable since its introduction. Apple continued improving it at a torrid pace even when they had left the competition so far behind there essentially wasn't any, and they're still doing it today.

    Here's the legal description of how Microsoft behaved:

    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,

    and what the law says of people who behave that way:

    shall be deemed guilty of a felony,

    and the prescribed penalties if the prosecutor decides to make it a criminal case (which he didn't):

    and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.

    Note that a hundred million dollars is and was chump change to Microsoft. They had a hundred seventy two times that much available in *cash and short-term notes*.

    In short, "to monopolize" trade is not "to have a monopoly on a product". Publishers have a monopoly on distribution of books they publish. That isn't the same as monopolizing trade in books.

    Apple have a monopoly on Mac OS X. They are not monopolizing trade in personal-computer OS's. They have a monopoly on iPods. They aren't monopolizing trade in digital music.

    They law applies equally to Microsoft and Apple.

    It's just that Apple didn't break it.

    --
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