The Mac Observer

Skip navigational links

Featured Article: Podcast - Mac Geek Gab #167: Drive Issues, Shortcuts, Remote Administration, and The Option Key Explained

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

Show: Subjects Only | Full Comments
View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: iLemmings Like To Pay Monopoly Prices For Music
Close Name:macnut Posts: 52 Joined: 28 Jul 2004
Subject:

How many songs are on that $20 album?

Quote
RealityCheck 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?

Close Name:Small White Car Posts: 1960 Joined: 02 Jul 2004
Subject: People who...

People...who...want...albums....buy...CDs...

Is that slow enough for you? There is no store where I can buy a song for 99 cents. People go to iTunes to buy songs, not albums. Who cares what albums are priced at? That's why Best Buy still exists.

Close Name:C-weed Posts: 16 Joined: 29 Jul 2004
Subject: They could sue...

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.

Close Name:Small White Car Posts: 1960 Joined: 02 Jul 2004
Subject: Lawyers

Quote
C-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.

Close Name:C-weed Posts: 16 Joined: 29 Jul 2004
Subject: My,how clever...

RC,
iLemmings, that's pretty clever. Did you think that up all by yourself? I have to say, it's the most clever think i've seen written by a WINdbag.

Close Name:Small White Car Posts: 1960 Joined: 02 Jul 2004
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.)

Close Name:C-weed Posts: 16 Joined: 29 Jul 2004
Subject:

Quote
Small 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.

Close Name:C-weed Posts: 16 Joined: 29 Jul 2004
Subject: iPenguins

Quote
Small White Car wrote:
Hmmm...iPenguins. I like it.


The Linux herd might take exception to that.

Close Name:fartheststar Posts: 214 Joined: 04 Jan 2004
Subject: DON'T FEED THE TROLL!

don't do it!!!

View Name:Guest
Subject: Reverse-Engineering
View Name:Guest
Subject: RC Wrong Again - iTMS Prices Are Lower Than CDs
Close Name:John F. Braun -   TMO Staff Posts: 229 Joined: 11 Jun 2001
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.

View Name:Guest
Subject:
Close Name:mloader Posts: 21 Joined: 03 Sep 2002
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.

Close Name:DawnTreader -   TMO Staff Posts: 14521 Joined: 04 Jan 2002
Subject: Re: iLemmings Like To Pay Monopoly Prices For Music

Quote
RealityCheck 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?

View Name:Guest
Subject: No Triple Word Score for RC
View Name:Guest
Subject: REAL can die with festering boils, for all I care :)
Close Name:AFCdtLoeb Posts: 2533 Joined: 20 Jul 2004
Subject:

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.

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.
Log in | Register | Having Problems? Reset TMO Cookies & Try Again
Username:   Password:   Log me on automatically each visit   

You are not logged in, and this post will appear as "Guest." Log in with your username and password from the TMO forums. If you do not have a username, you can register here.
Please note that guests are limited to including a maximum of two URLs per post.


Post A Comment
  Subject


  Your Comments



Please enter the word exactly as you see it in the image above. Registered users aren't prompted for this. Having trouble reading the image get a new one.


Recent Headlines - Updated Monday, September 8th, 2008

Mon., 1:30 PM
UBS Sees Softness in PC Unit Growth, Favors Apple
1:00 PM
iPodObserver - Say Where, Voice Recognition Coming Soon to iPhone
12:40 PM
Studiometry 6 Adds Multi-project GANNT Charts, More
12:00 PM
Monday's Mac Gadget - Need to Free Some Disk Space? Check out Xslimmer!
11:15 AM
iPodObserver - Best Buy Now Selling Apple's iPhone 3G
10:25 AM
Hot Forum Topic - Apple's Missing Take Down Notices
9:55 AM
OmniGrowl 3.4 Improves RSS Support, More
9:05 AM
Microsoft to Copy Apple's Geniuses with Gurus
8:15 AM
iPodObserver - Apple Tapped Media Player Inventor in Burst Case
7:30 AM
iPO Quick Tip - iPhone: Preview URLs in Mobile Safari
6:00 AM
iPO Review - Case-Mate Signature Leather Case for iPhone 3G
 

The Mac Observer Reader Specials

  • Special Report: WWDC 2008
  • Special Report: iPhone
  • __________
  • Help TMO Grow
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!

Apple Stock Quote

  • AAPL: $156.13. Change Today: -4.05.
  • (Prices delayed up to 20 minutes.)
  • Discuss in our Apple Finance Board

Hot Topics

What's the buzz? These articles have TMO readers talking.

Top Deals From DealsOnTheWeb