Apple Wins iTunes DRM Case
An anonymous reader sends word that Apple's iTunes DRM case has already been decided. The 8-person jury took only a few hours to decide that the features introduced in iTunes 7.0 were good for consumers and did not violate antitrust laws.
Following the decision, the plaintiff's head attorney Patrick Coughlin said an appeal is already planned. He also expressed frustrations over getting two of the security features — one that checks the iTunes database, and another that checks each song on the iPod itself — lumped together with the other user-facing features in the iTunes 7.0 update, like support for movies and games. "At least we got a chance to get it in front of the jury," he told reporters. ... All along, Apple's made the case that its music store, jukebox software, and hardware was simply an integrated system similar to video game consoles from Sony, Microsoft, and Nintendo. It built all those pieces to work together, and thus it would be unusual to expect any one piece from another company to work without issues, Apple's attorneys said. But more importantly, Apple offered, any the evolution of its DRM that ended up locking out competitors was absolutely necessary given deals it had with the major record companies to patch security holes.
I can't believe the 700 billion dollar corporation won this.
Wait, what? People no longer use MP3s? They don't buy iPods?
This sounds like an odd claim ... I've got way more MP3s now that I did in 2005, and it's the primary way I listen to music. When I buy a CD (yes, I still do that) the first thing I do is rip it.
Sure, there are streaming services. But I'm betting lots of people still play MP3s on portable players.
It's not as glamorous, but saying MP3s have no bearing on the modern technology industry? I'm not buying that.
Lost at C:>. Found at C.
every time you have to move data from one system to another, it has to be flushed through some software to work on the new stuff. every time. all the way back to ENIAC, nothing is truly portable. I never had issues with iThingies, but then I never tried to use Real or Creative, either. and if I did, hey, flush the data through something else. like always.
if this is supposed to be a new economy, how come they still want my old fashioned money?
These two questions:
A) Is DRM a bad thing?
B) Did Apple's DRM raise the price of iPods?
are two very different questions. If is very easy to see how someone could answer the questions differently. The court was asked to decide B not A.
Apple does not have a monopoly on MP3 players. If You don't like the way Apple places restrictions on what how songs get onto Your iPod, don't buy it. Otherwise, it's like complaining Tesla has a monopoly on on the electric car, which it doesn't. As far as "totalitarian behavior" goes, You have a curious definition of "totalitarian": We give Customers a pleasant experience; They come back for more because They enjoy that experience; We do things to make that experience more enjoyable; therefore, We are acting in a totalitarian fashion. (WTF?!?)
It should be pointed out that Apple later convinced the music labels to let them remove DRM from the iTunes Store. Which really kind of makes the whole thing moot.
How can DRM and locking out competitors ever be defined as good for consumers?
Steve Jobs himself was anti-DRM (on music, at least): http://readwrite.com/2007/02/0...
It's a shame the original page isn't even on Apple's own website anymore.
Get free satoshi (Bitcoin) and Dogecoins
It should be pointed out that Apple later convinced the music labels to let them remove DRM from the iTunes Store. Which really kind of makes the whole thing moot.
It's moot - for now.
You say "Don't have a cow!"
But you never can know
How the wind will blow
Come the next lobbyist - politician pow-wow.
Burma Shave
"Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
"Your Honor, I ended up killing him, It was absolutely necessary given deals I had with his wife to patch her problems"
A secret deal is not an excuse to screw illegaly your customers, if that was the case.
And when Apple removed DRM from their music in 2009, you were cheering, no?
Well, there's spam egg sausage and spam, that's not got much spam in it.
DRM is so terrible that.... Apple did away with it on the music store years ago.
Its the content industry that is keeping it on the movie and tv stores. I am against DRM too but remember who requires it in their contracts to distribute.
You mean other than they never wanted it in the first place.
How can DRM and locking out competitors ever be defined as good for consumers?
"Ever" is a strong word. Think back to 1983 and 1984 when the North American video game market crashed due to too much choice. Because the Atari 2600 had no lockout, anybody could develop a poorly balanced game and sell it. In an era before Internet reviews, when games cost $20 or more (roughly $60 in today's money), people grew leery of spending on something they think might not be fun, and many retailers and end users gave up video gaming altogether. It took Nintendo and its lockout regime to convince retailers and end users to give video games a second chance.
In addition, DRM is good for consumers because it ensures that studios will be willing to publish more than zero desirable works in a format. Video CD and Super Video CD didn't do very well in North America because they were far easier for end users to duplicate flawlessly than, say, a VHS tape that incorporates generation loss as well as Rovi's Macrovision analog copy protection. It took CSS to get the major movie studios to sign onto DVD for the North American market. So end users were faced with a choice between VCD/SVCD, which has no DRM and no major titles, and DVD, which has DRM and major titles.
I personally started buying music online a few years back. I didn't want DRM.
I've spent probably a few hundred pounds with Amazon, just because when I started buying music online they were the place to offer DRM free. Apple lost me as a customer because of DRM.
That again is also muddying the waters, considering that Apple established via their contracts with RIAA member companies that DRM was required for them to sell music online. The more appropriate question is whether their prevention of competitors DRM Schemes on the iPod drove up prices of either the music itself or the iPod devices upon which said digitally purchased tracks could be obtained. This would also seem to be an easier question to answer as it would allow for direct analysis of Apple's business model versus their competitors, or even the price jump experienced when their tracks went from $0.99 to $1.29.
Thirty four characters live here.
Apple's lawyers were not working to bring out the truth or present anything that Apple did that hurt the competition. Their job is to win. Half-truths and ridiculous scenarios being presented as helping the customer are all part of the game. The lawyers succeeded in steering the jury to see Apple as a humble, helpful, servant of the people. Preventing possibly corrupted music files from inhabiting their ecosystem was a noble goal. Lies, but apple Apple wins.
2/6/2007
http://macdailynews.com/2007/0...
"The third alternative is to abolish DRMs entirely. Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat. If the big four music companies would license Apple their music without the requirement that it be protected with a DRM, we would switch to selling only DRM-free music on our iTunes store. Every iPod ever made will play this DRM-free music."
"Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly."
5/30/2007
Apple starts selling DRM free music
https://www.apple.com/pr/libra...
9/25/2007
Amazon starts selling DRM free music,
http://readwrite.com/2007/09/2...
As you were saying?
That's a hard question to answer in a suit against Apple. Certainly the RIAA wanted Apple to be nothing but a device manufacturer allowing a host of other formats and selling agents. At the same time the other ones available like Real they didn't want. So it is hard to find a monopolistic act where Apple wasn't under contract. That's a much better question for an anti-trust suit against the RIAA.
8-person jury will get free mac pros and iphones now
"I hate Apple so I'm just going to make shit up."
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
You seem to forget that studios _have_ to be willing to publish in a format that people will use.
And if there are many people whom the DRM doesn't inconvenience, then there are many people willing to buy copies of works in a DRM format. The popularity of video game consoles, DVD, and iTunes Music Store prior to 2009 has shown that there do exist enough customers willing to tolerate DRM to keep a market going.
The court was not asked to decide either one of those things. You're not even paying attention.
Well yes actually. That's what they are being sued for. I know it sounds ridiculous but that is the plaintiff's claim.
It wasn't Apple being totalitarian, it was the music industry in general. All Real had to do to make their stuff work on the iPod was to remove ALL DRM. However, had they done that, they'd have been the ones in the dock at the behest of the RIAA, et. al. Eventually Apple's power and market dominance gave them enough clout to tell the music industry where to stick their DRM. And yes, that sounds "totalitarian", but actually, it was the consumer who benefited.
Seems to me that people just like to use the existence of the meritless case to push and reinforce their own anti-Apple views. Such views may have some validity, but to use this particular case and the history behind it to push them is ridiculous. We consumers enjoy DRM-free music today because of Apple, make no mistake. Do you really think Real (or Amazon, or whoever) would have managed the same thing if Apple hadn't? Nope - we'd still have crappy DRM-encrusted music from the industry or would be using the hit-and-miss GNUTella method.
Remember that any industry-backed music download service had to compete with free (albeit free with strings attached, in the form of terrible rips, mislabelled files and malware). Apple pulled it off, and they deserved to win this.
The decision was good. Apple did not have a monopoly. People could choose not to use Apple products and still listen to music. Not a big deal.
This was just a bunch of lawyers desperately looking to hit the jackpot. They were so creepy they had to find a new client to justify the case because none of their original clients qualified.
Even then they case was open and shut absurd and dumped.
"Following the decision, the plaintiff's head attorney said an appeal is already planned."
Aye, spoke like a true ambulance chaser.
What we need to have happen is that the judge should award damages to Apple for all their legal fees which the plaintiff and lawyers should then have to pay. If this was a basic part of the legal system it would quickly put an end to these nuisance lawsuits that are wasting the court's time and blocking valid cases from getting into court.
That's awfully weird considering Apple dropped DRM from its music store before Amazon opened their music store.
Your memory and reality are having a somewhat awkward dissonance.
You could get a computer which could do more than play games for the price of a console.
At launch, a Commodore 64 computer with a 1541 floppy drive cost much more than the second-generation consoles did.
Well yes actually. That's what they are being sued for. I know it sounds ridiculous but that is the plaintiff's claim.
The plaintiff's claims were nowhere near as sensible as the things you asked about. (Actually, Apple's legal reply to most of the claims was "what you are claiming doesn't make any sense". Usually a legal reply to a reasonable accusation either says "we didn't do it" or "we were allowed to do it". )
And anyway, I have the impression that Apple's music DRM is the only one that still works. If you bought music with Apple's DRM ten years ago, you can still play it. Try playing PlayForSure music. No chance. It doesn't work anymore. I think there are some other schemes that stopped working. (If anyone knows of any other music DRM that still works, I'd be interested to hear about it).
And Apple's DRM could always be removed legally by burning the music onto a CD using Apple's own iTunes software, and today Apple's DRM can be removed legally (unfortunately not for free) by subscribing to iTunes Match once.
"Starts selling" is the key. Yes, they had some DRM free content. Amazon had all DRM free music content. That's a massive difference. I was very much against Amazon at the time because of the one click patent, but I started buying music there because they were doing it the right way. iTunes went all DRM free later on, well after Amazon.
Apple started selling DRM free music (5/2007) before Amazon started selling music (9/2007).
Article from 2009 announcing price cuts to iTunes music, mentions Apple has plans to go DRM free in the future:
http://www.computerworld.com/a...
From same article:
"While iTunes is the most popular digital music store, others have been faster to offer songs without copy protection. Amazon.com started selling DRM-free music in 2007 and swayed all the major labels to sign on in less than a year."
Awfully weird indeed.
Amazon didn't launch with all four of the major record labels. So while all of their music was DRM free. They didn't have all of the music that Apple had.
http://en.m.wikipedia.org/wiki/Amazon_Music
They didn't have to. They had enough to start chipping away. As Amazon's sales increased, they'd have more power to reign in the hold-outs. Apple didn't have a choice. Amazon was probably hoping they'd try to hold-out. Without devices of their own, the DRM-free nature of their catalog was their best draw. That's probably why they're so heavily into the Kindle, Fire, and other gadgets now. They want their catalog to be the first that a consumer sees. Something they'll never get on other company's devices if those companies have a catalog of their own.
That's not what happened.
Here is the long version of the story....
1. Around the end of 2006, the EU was clamoring for Apple to license FairPlay. That's why Jobs said that most of the four record labels were based in the EU.
2. Jobs posted "Thoughts on Music" (the previously quoted article) telling the music industry if they wanted interoperability they could license their music DRM free.
3. Most of the music industry wanted Apple to have variable price music and to allow full albums to be sold without breaking them up. Apple refused. But made a deal with EMI.
4. The industry wouldn't let Apple sell music over the cellular network on the then new iPhone.
5. Amazon starts selling DRM free music acquiescing to the studios demands.
6. 2008 - around the time that Amazon had all four labels, Apple gave in to the labels on variable price music in exchange for DRM free music and the right to sell over the cellular network.
If you read the entire "thoughts on music" article, Jobs said that very little music in the typical iPod came from iTunes.
Amazon was only selling music in the US from two of the labels when it first came out. Not real competition to Apple.
Within a year of Amazon opening their digital music store, they had the major labels. Apple was still heavily into DRM then. I don't really care what Apple wanted to do, I'm looking at the facts for what they are. A year in, Amazon had what it needed to be a significant threat to Apple's iTunes store. Jobs may have been truthful saying that little music came from their store at the time, most music would have been ripped from people's CD collections, and I'm sure a significant chunk from file sharing. What was their percent out of the total that had been purchased from online? I'm sure they saw the iTunes store as a big part of Apple's future. Device sales alone only get you so far.
One thing is certain, Jobs wouldn't have been giving Amazon credit for busting DRM. That doesn't mean they didn't play a big part. They pulled off what Apple couldn't or wouldn't.
You mean like your previous "fact" that Amazon started selling DRM free music before Apple did?
If only Jobs had stated how many songs on a typical consumers iPod came from iTunes in his "Thouhts on Music" post. We would know....
Oh wait he did....
If only we could look into the distant future in 2014, 7 years after all this happened and see what percentage of Apple's revenue came from device sales of that iPhone thing they introduced in 2007. compared to music sales and iPod sales. I'm sure you're right, it's not like over 90% of their revenue come from devices....
You mean after 7 years still being the number one music retailer in the world?
I don't care who sold DRM free first. This thread is from my comment pointing out that Apple is not the reason music sales now are free of DRM. Amazon's catalog was entirely free of DRM, and they had the major labels within a year. Amazon did that, not Apple. Amazon got there well before Apple. Get it? That's my first comment here.
Apple can't rely on device sales. There's not much more you can make a gadget do. What's going to be next for innovation? Twice the resolution of a retina display? Digital goods are going to be the bread-winner. It's inevitable.
Your last bit there doesn't contradict anything I said. Amazon could have been number one if Apple dug in on the whole DRM thing. I think that's part of what pushed Amazon to create their line of devices. The device drives the catalog. It will be interesting to see where it goes from here. I wouldn't bet on Apple, but who knows.
You've already shown that you don't the history behind what happened. But even after posting the dates that Jobs posted a letter stating that they would go DRM free if the labels allowed them and proving that they would once they were allowed to by one of the labels you still insist that Amazon forced them too?
If you knew the history, you would know that the labels didn't want to go DRM free. They wanted Apple to license FairPlay so other retailers like Real would have a chance. Apple said no and their only alternative was to go DRM free because no one would buy music that they couldn't use on iPods.
If by well before Apple you mean less than a year....
Yes and inevitable the world will come to an end. But Apple has been selling hardware since 1977.
Amazon still in 2014 only sales music in two countries. in 2008, Apple had 70% plus of the MP3 market. Most people in the U.S. were either using iPods or CDs - both of which were supported by iTunes. They weren't affected by Apple's DRM.
You obviously don't know how little money is made off of selling digital goods compared to the margins Apple makes on hardware or how little profit Amazon has made over its entire 15+ year existence.
What next? Do you think Intel can't keep successfully selling processors?
I don't care what Jobs said. It's irrelevant. Amazon's store was DRM free. They had the major labels within a year. Apple did not. I don't care what Jobs said at the time. Amazon got it done while Jobs was still blathering on about it. Actions beat words. Apple didn't rid DRM from their catalog until Amazon forced them to. You can go on talking about Jobs all you want. I saw what actually took place.
Hardware margins are a fool's game. Apple is going to lose its shirt if it keeps betting on them. Digital goods is the future. Mark this comment and come back in a few years. You'll see. I also wouldn't bet against Amazon. They're making strategic moves now and sacrificing the short term to win big in the long term.
"Starts selling" is the key. Yes, they had some DRM free content. Amazon had all DRM free music content. That's a massive difference. I was very much against Amazon at the time because of the one click patent, but I started buying music there because they were doing it the right way. iTunes went all DRM free later on, well after Amazon.
The reason was that the music labels were worried about Apple's strength in the market, so they forced Apple to sell an inferior product (music with DRM), and they only allowed Apple to sell DRM free music after Apple agreed to raising prices.
It was a whole extra 6 months.
Obviously you didn't see what took place. You didn't know that the average user had 12 songs bought from iTunes on their iPod. The truth is that once every other company failed to sell DRM music because it wouldn't work on the iPod and Apple refused to license FairPlay, the industry didn't have a choice.
Do you really think that Apple - the company that first was able to get a consistent licensing agreement with its while catalog - was trying to keep DRM even though they got rid of it as soon as they were allowed to?
People have been predicting that Apples margins would collapse since 1977.
If only Apple had a thriving. growing digital goods business that sold music, video, and apps....
You know, maybe they should also get into payments! Nahh, that would never work...
Someone also hasn't looked into Apple's CAPEX.....
Amazon has been in business for over 17 years. 17 years ago in 1997 Apple was almost bankrupt and now is the most valuable company in the world. Who's strategy has worked better?
Wikipedia disagrees.
In short: Mr Jobbs refused to let other players in, to a point when major "music companies" preferred no-DRM to DRM dominated by Apple.
25th of September 2007 was when BETA version of amazon music came to life, but DRM free music from major players came later:
In January 2008 it became the first music store to sell music without digital rights management (DRM) from the four major music labels (EMI, Universal, Warner Music, and Sony BMG), as well as many independents.[1][2][3][4]
http://en.wikipedia.org/wiki/A...
Before that happened:
The music companies had argued that Apple, which dominates the digital music market with its iPod player and iTunes service, should license its copy protection software to rivals. But Mr. Jobs has refused, saying that such a move would invite several problems, including the possibility that hackers would crack the technology.
Which led to:
Now, some music executives are privately backing the idea of dropping the software from music sold through virtually every service except iTunes, in order to strengthen AppleÃ(TM)s rivals and potentially diminish Mr. JobsÃ(TM)s advantage. The major labels have been upset with AppleÃ(TM)s inflexibility on music pricing, among other issues.
From:
http://www.nytimes.com/2007/12...
No, not at all.
Apple didn't allow competitors with DRM. (reminds me early Apple vs PC days)
Music industry decided it's better to have no-DRM + competition, than Apple only DRM.
http://www.nytimes.com/2007/12...
Wow if Wikipedia disagrees, I guess that solves the issue....
But who are you trying to refute?
How are you saying anything different from what I said? The industry wanted Apple to license its DRM. Apple refused and said if the industry wants interoperability and competition license the music free of DRM and they will go along with it.
In fact, Steve Jobs was always anti-DRM on iTunes music. (Not necessarily from basic goodness, but because non-DRMed music was likely to sell more iPods, and that's where Apple got most of its money). Apple DRM was almost trivial to work around.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
I have to agree. Similarly, it would be interesting for somebody to post a good argument that Apple favored DRM or that DRM itself was good for Apple, rather than take it as an axiom (or derived from another axiom like "Apple is bad") and try to argue away from the evidence.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
That won't happen, Apple didn't want the DRM.
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
Lawsuit had nothing to do with rival music storesâ(TM) music files, and everything to do with rival music storesâ(TM) DRM. The plaintiffs in this class action suit are, from what Iâ(TM)ve read, deliberately blurring the lines to conflate the two. Apple: Only ever supported one DRM format: FairPlay. They never licensed FairPlay to other device makers or music stores, and never supported any other DRM format in iTunes or on iPods. Always supported non-DRM music â" in MP3 and AAC formats â" on both iTunes and iPods. Included DRM on iTunes Music Store tracks at the insistence of the record labels. As famously made clear in Steve Jobsâ(TM)s âoeThoughts on Musicâ open letter in 2007, Apple wanted to sell DRM-free music tracks, and, once the record labels allowed them to, they did just that. The thing with Real Networks is that they backwards-engineered FairPlay in 2004, and Apple responded by closing the loopholes Real exploited. If Real had sold DRM-free MP3 files, Apple wouldnâ(TM)t have done anything. Amazonâ(TM)s music store has always sold music in plain no-DRM MP3 format, and those files have always worked perfectly with iTunes and iPods.
-- "I'm not in a hurry; I'm in Hawaii." The Homeless Guy
Article from 2009 announcing price cuts to iTunes music, mentions Apple has plans to go DRM free in the future:
http://www.computerworld.com/a...
From same article:
"While iTunes is the most popular digital music store, others have been faster to offer songs without copy protection. Amazon.com started selling DRM-free music in 2007 and swayed all the major labels to sign on in less than a year."
Awfully weird indeed.
Amazon started selling DRM-free music in September 2007
Apple started selling DRM-free music in April 2007 - https://www.apple.com/pr/library/2007/04/02Apple-Unveils-Higher-Quality-DRM-Free-Music-on-the-iTunes-Store.html
Ohh, and http://news.cnet.com/2100-1027-998590.html
> April 28, 2003 12:16 PM PDT
...
Apple unveils music store
The songs cost 99 cents each to download, with no subscription fee, and include the most liberal copying rights of any online service to date. Jobs has been an outspoken opponent of so-called digital rights management (DRM) in the past, arguing that limitations on digital music will undermine the market for legitimate content.
Two-thousand-fucking-three.
Of course news about a fake are Fake News.
Within a year of Amazon opening their digital music store, they had the major labels. Apple was still heavily into DRM then.
Because Amazon paid the major labels not to let anybody, especially not Apple, sell DRM free music. Time to sue Amazon.
Of course news about a fake are Fake News.
No, not at all.
Apple didn't allow competitors with DRM. (reminds me early Apple vs PC days) Music industry decided it's better to have no-DRM + competition, than Apple only DRM. http://www.nytimes.com/2007/12...
So in other words, this suit was about making money from Apple for forcing the music industry to drop DRM.
Of course news about a fake are Fake News.
You don't own the music; the label does. You own a copy of the music. What is the value of owning a copy of the music other than to listen to the music? Streaming provides the ability to listen to the music at a price less than that of owning a copy. Are you counting on the copy appreciating in value and then being able to resell the copy to a collector for a profit later?
I agree. This suit is bizarre. Feel free to educate me if I'm underestimating how bizarre. But my understanding of the claim was that Apple used monopoly DRM to raise the price of iPods and that was the restraint of trade act.
You know that and I know that, but from the comments here a fair number of people on /. think otherwise, for no reason I can see.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
Of course Apple had _some_ DRM free titles by 2007, everyone did. Selling a small portion of your catalogue DRM free is not very useful for me. I don't want to have to check which DRM is on which song.
In 2007, Apple was selling EMI (and EMI only) music DRM free at additional cost. By January 2008, Amazon sold everything DRM free. Apple went DRM free in 2009. Google Fairplay.
Of course Apple had _some_ DRM free titles by 2007, everyone did. Selling a small portion of your catalogue DRM free is not very useful for me.
It was all music from one of the major studios, not "a small portion". That means you fail.
Of course news about a fake are Fake News.