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BusinessWeek: Apple Should Just Say No to Harmony
by , 8:00 AM EDT, July 29th, 2004
BusinessWeek has published an editorial by Peter Burrows, Computer editor in the magazine's Silicon Valley bureau, that says Apple should just say no to RealNetworks' Harmony. Harmony is Real's recently announced software that allows iPod users to play downloads from RealNetworks' own music download service. According to Mr. Burrows, Harmony is a threat to Apple, and the company should do all it can to fight it. From BusinessWeek:
Apple isn't commenting on Real's move yet. But it's almost certainly exploring the possibility of a copyright lawsuit. And that's not the only option. Experts say it could require iPod owners to download a firmware upgrade the next time they try to buy a song from iTunes that would render Harmony useless -- much as a security patch resolves a computer virus.
If Jobs's lawyers tell him it's legally justified, the CEO might even consider an even more radical way of making his point: loudly inform iPod owners that Apple will no longer honor their warranty if they buy songs from Real or other rival online music stores.
BIG-TIME PARTNERS. Such a move might temporarily cast Jobs as the Darth Vader of interoperability to industry watchers. But in the long run, it's in Apple's best interest. Jobs & Co. don't need anyone's help to achieve their iPod sales growth or profit goals. Despite an already dominant position, iPod continues to outgrow the market. In the second quarter, Apple sold more than 800,000 iPods and just sold its 100 millionth song.
There is much more in the full article, and we recommend it as a thought-provoking read.
The Mac Observer Spin:
Mr. Burrows raises some very interesting points in his commentary, and this entire situation is only going to become more interesting before it is over. Will Apple sue? Does Real have a case for reverse engineering under the DMCA as Mr. Burrows mentions, and one legal expert TMO has spoken to has suggested? Is this even a threat to Apple's iPod/iTMS combo in the first place?There are simply lots of questions, and no answers as of yet, but Mr. Burrows offers much food for thought.
Observer Comments
Thu Jul 29, 2004 8:40 am Subject: iLemmings Like To Pay Monopoly Prices For Music
How many songs are on that $20 album?
QuoteRealityCheck wrote:
Seems like every iLemming is under the influence of the Apple's RDF, they keep repeating the Steve Jobs myth that iTunes only exists to sell iPods. Like there's no profit in software. iTunes is the most expensive onlne music store their is, some albums are already over $20 each.
How many songs are on that $20 album?
Thu Jul 29, 2004 8:49 am Subject: People who...
And IANAL, but a copyright violation means Apple has to prove that code was copied from their source. Reverse engineering, for the purposes of compatibility, is legal (at least for the time being). So unless Apple is holding a patent for any portion of FairPlay that they could pull out to stop Real, I don't see them winning.
What Apple should focus on is the user experience. Make iPod/iTMS the best in the market and keep it there. It's worked so far.
Thu Jul 29, 2004 8:56 am Subject: Lawyers
QuoteC-weed wrote:
What Apple should focus on is the user experience. Make iPod/iTMS the best in the market and keep it there. It's worked so far.
And they will. This is all a question of what the lawyers are going to do. And as we know, lawyers and the rest of us don't really exist on the same planet. Even if Real ends up getting sued you can bet that Apple itself will be happy for the extra business Real is getting them. What Apple's thinking and what lawyers do aren't really the same thing at all.
Thu Jul 29, 2004 9:06 am Subject: iLemmings
It's been around, as a term. I don't really get it...lots of animals form herds and follow each other around. Why pick a cute animal?
Maybe iBuffalo would be better as they seem to be pretty dumb looking. Actually, iPenguin would be best since they sometimes push another bird into the water to test for whales. If they survive the rest jump in. Here in the computer world we call those "early adopters."
Hmmm...iPenguins. I like it.
(And before someone writes in about the lemmings-off-the-cliff-thing...it's not true. Ok? Disney faked it. Got that? Lemmings don't commit suicide.)
QuoteSmall White Car wrote:
What Apple's thinking and what lawyers do aren't really the same thing at all.
Point taken. The lawyers are going to end up killing the tech industry. Between the ex-lawyers/now politicians making up these stupid laws, protecting the large media giants. And the companies, like SCO and Lexmark, bringing out these frivolous lawsuits to further their own greed, it's soon going to be impossible to do anything new and innovative, let alone competitive.
Thu Jul 29, 2004 10:15 am Subject: DON'T FEED THE TROLL!
Thu Jul 29, 2004 12:23 pm Subject: Reverse Engineering versus Hacking/Cracking
If Real was trying to reverse engineer an algorithm that didn't involve removing encryption that protected a copyrighted work, then they're OK. But under the DMCA, as misguided as it may be, breaking encryption used to protect a copyright work is illegal. I think Real is going to get busted on this one.
Maybe they figured the gamble and legal costs would be worth all the publicity they knew they would get. I don't agree.
Thu Jul 29, 2004 3:41 pm Subject: OS X Makes iTunes Work
I feel the biggest reason iTMS is such a success is because of how well it works with the OS. I really believe this is what separates Apple from other services who are not fairing quite as well. I bet if Apple paid no mind to Real's harmony it will go away. On the other hand giving consumers more choices is always a good thing. For consumers anyway.
Thu Jul 29, 2004 7:41 pm Subject: Re: iLemmings Like To Pay Monopoly Prices For Music
QuoteRealityCheck wrote:
Seems like every iLemming is under the influence of the Apple's RDF, they keep repeating the Steve Jobs myth that iTunes only exists to sell iPods. Like there's no profit in software. iTunes is the most expensive onlne music store their is, some albums are already over $20 each.
Napster's music service is a cash drain. Harmony is going no where quickly. iTMS actually has turned a slight profit on operations. Apple has publicly stated this fact.
The iPod is a developing hardware platform. The fact that Apple has developed iTMS to the point that it is covering the costs of operations is evidence of Apple's smart business management and effective market model.
There's no sense to selling music at a loss. Why would you expect Apple to do that?
Sat Jul 31, 2004 7:31 pm Subject: REAL can die with festering boils, for all I care :)
Up here, where Real is based, it is commonly acknowledged to be the least respected compnay in the Pacific Northwest. Every time its stock goes down, I hear someone sighing relief that tonight may be the night Real dies. I hope Apple drags this out long enough to kill Real once and for all.
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