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France to Approve DRM "iPod Loophole"

France to Approve DRM "iPod Loophole"

by , 9:10 AM EDT, June 22nd, 2006

French lawmakers plan to modify the bill that would have forced companies to share their digital rights management technology. According to Forbes, the French Lower House has agreed to keep wording that offers companies like Apple and Sony a loophole that protects their proprietary copy protection systems.

The proposed changes, due to be approved Thursday, lets companies refuse to share DRM technologies as long as the music copyright holders they represent agree. With appropriately worded contracts, Apple, Sony, Microsoft, or any other company that sells DRM protected music in France can keep their proprietary copy protection schemes out of the hands of competitors.

A new regulatory agency will be established to resolve licensing disputes, and will have the authority to force companies to share their DRM technology with competitors if the restrictions imposed are "additional to, or independent of, those explicitly decided by the copyright holders."

The intent of the original bill was to create an open playing field where consumers could purchase digital music from any service and play it on any device. Apple and several other companies opposed the legislation because it required them to share information about their copy protection systems with almost anyone. The result, they feared, was that music piracy would skyrocket.

Many analysts predicted that Apple would shut down the iTunes Music Store in France to protect its FairPlay copy protection.

Although the new wording in the bill sounds like good news for digital music service providers, not everyone is happy. Frederique Pfrunder, a spokeswoman for the CLCV, one France's main consumer organizations, said that the France is "washing their hands of the consumer," fearing that the legislation will let companies like Apple dictate music pricing to the recording labels.

Copyright holders will be forced to agree to the distributor's terms. "If they refuse," she says, "they'll lose their deals."

The bill could potentially work against digital music services, according to Business Software Alliance policy director, Francisco Mingorance. He says labels may refuse to provide music if the distributors don't agree to their pricing terms, which could force Apple to raise song prices. "It would definitely harm consumers."

Once the new wording is approved for the bill, a final vote is required by France's Senate and national Assembly before it becomes law.

Observer Comments

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Close Name:deasys Posts: 296 Joined: 08 Apr 2003
Subject:

Quote
Frederique Pfrunder, a spokeswoman for the CLCV, one France's main consumer organizations, said that the France is "washing their hands of the consumer," fearing that the legislation will let companies like Apple dictate music pricing to the recording labels.


Yeah, it's awful that Apple has steadfastly refused to submit to music label pressure to raise music prices.

And she's the spokeswoman for "one of France's main consumer organizations?" Hmm.,.does 'consumer' mean 'supplier' in France?

Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject: as the cookie crumbles

So, Norway was depending on France to have a backbone (insert joke here) as proof that somebody could stand up to Apple. Well, that's gone. It's been centuries since the Vikings have conquered anything.

Looks like it won't be this time either.

But are the consumers the losers? Not hardly. They still get their music for their iPods at a reasonable price, held in check over what the studios want to charge. And there are plenty of other avenues to purchase music from if they don't like the scheme or the iPod.

Close Name:DrShakagee -   TMO Forum Mod Posts: 941 Joined: 14 Jun 2001
Subject:

Correct me if I am wrong but can't you just burn a CD of itms songs and rip them to any format you want and put the resulting files on any device that you want? Sure it's an extra step for consumers to take but it's not really preventing purchased music from being able to be loaded to any device.

Aren't consumers similarly getting the shaft by the recording industry's CDs that will not play in a cassette deck?

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

Quote
DrShakagee wrote:
Aren't consumers similarly getting the shaft by the recording industry's CDs that will not play in a cassette deck?


No, but if Sony-made CDs that played ONLY in Sony-made CD players they'd have a problem with it.

Close Name:JulesLt Posts: 136 Joined: 06 Jul 2005
Subject: Corrections

>Yeah, it's awful that Apple has steadfastly refused to submit to music label >pressure to raise music prices.
No, the pressure is to allow VARIABLE prices, like any shop normally does.
I'd also add that the average price I pay for a track on emusic is about a quarter of the price on iTunes for the same track; it's an entirely different pricing model (pre-paid bundles) but it is more cost effective for me.

I also dislike the fact that Apple puts Fairplay on all tracks from iTMS, even where the artist is happy to sell on MP3 on other sites. Of course I am free to use those other sites - and do. I hope that this law means artists are free to say 'No, I don't want DRM on my music' without Apple then refusing to stock them in iTMS. And all this from the company that had resisted DRM to start with.

>Correct me if I am wrong but can't you just burn a CD of itms songs and rip >them to any format you want and put the resulting files on any device that you >want? Sure it's an extra step for consumers to take but it's not really >preventing purchased music from being able to be loaded to any device.

What keeps being missed in this is that the overall law is a piece of pro-DRM legislation - similar to the American DMCA - that would increase penalties for the removal of DRM from protected files. I think in this case you would be fine provided you were within the terms of the Fairplay licence - which allows for CD burning, but I am not sure of the rules for the further re-import of that CD.

The stuff about interoperability was an amendment added by a left-wing party so that consumers were not locked into a particular DRM format. iTunes is the primary candidate today, but it other DRM formats, and any future formats. (So there is the interesting possibility of Apple being able to legally insist on French consumers being allowed to transcode their DVD to their video iPod).

I would also add

Close Name:Tiger Posts: 1018 Joined: 17 Jun 2003
Subject:

Quote
No, but if Sony-made CDs that played ONLY in Sony-made CD players they'd have a problem with it.


Well, there are already bits and pieces of CDs sold for years that don't work in Macs either (not to mention Linux).

YEARS.

Sony, BMG, etc., all make such CDs. Because it's their format they choose to provide. You know what, we've lived with it and gotten over it.

We know it going in. Big freaking deal. I can't put Diesel in my car either. It's a fuel, but it's not compatible. Hmm. I can still buy gas. You can still buy music in about as many formats as fingers on your two hands, whatever number that may be. Apple's format is compatible with their device only. They tell the customer this up front. You don't have to buy it, you don't have to shop at iTunes. But unlike Diesel, at least songs from iTMS CAN be converted to work in other devices. I'll never get Diesel to work in my vehicle.

Now, I can understand consumers 'wanting' Apple to open up. The iTMS is easy, it's clean, it's organized. It's friendly. But you know what? It's just a nice 'want."

Governments launching massive lawsuits and so called consumers rights groups (what a misnomer!) launching campaigns to change laws to force Apple to give away its product to competitors is socialistic, a gross restriction of free trade, and completely repugnant for a company who has legally set up a product, negotiated legal licenses to sell their products in these countries, and done so now for years.

And no, I don't work for Apple. I work in higher education. I've studied communications, ethics, and law, and it truly disgusts me to see what has been going on over this issue.

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