The Hindu Business Line : Taking a byte out of Apple

Apple Computer, the company that gave us Mac and iPod, turned 30 years old this April 1. But it seems the French don't want Apple to have all the fun in this landmark year.

A new online copyright Bill that French lawmakers have approved requires Apple and other digital music service providers to throw open their proprietary copy protection formats so as to share them with others. The French lawmakers believe such a move will go a long way towards curbing piracy. The logic behind the Bill is that if companies share their digital rights management (DRM) formats, any music downloaded from any online store can be played on any device.

The essence of this Bill is that anybody who legally buys a song or a movie online should be able to play that stuff on a player of his choice. The customer should not be tied down to one particular gadget. France's Senate is expected to debate and vote on the Bill in May.

Apple obviously resents this move by the French. The reason: Apple rules the digital music scene with its iPod music player and iTunes online music store. Songs downloaded from iTunes come protected by Apple's DRM software, FairPlay, and you can play songs from iTunes only on an iPod or QuickTime programmes. You can't play those downloads on any other digital music players because Apple has not licensed FairPlay to any others.

The French draft law has not singled out Apple, though it will be the one going to be hit the hardest because of its hegemony in online digital music. It is estimated that Apple has over 70 per cent market share.

Apple has reacted, saying that if the law is enacted, it will lead to legal music sales plummeting at a time when such downloads are gathering momentum against pirated tunes. But on the other hand, Apple also sees an opportunity: iPod sales will get a boost as songs from other services will become available for the device.

Digital rights activists have welcomed the French Bill, saying that it would lead to more competition in the marketplace, thereby benefiting consumers. The recording industry has also given a thumbs-up to the Bill. John Kennedy, Chairman and CEO of the International Federation of the Recording Industry, has been quoted as saying it is important to consumers to have the ability to move songs between various devices.

If the law comes to effect, some analysts expect Apple to probably pull out iTunes from France, rather than disclosing the FairPlay technology to others. The company has spent considerable resources to develop the DRM and has every right not to share its proprietary software with anyone else. But another question that pops up is that what would Apple do if other countries also decide to do something similar. History tells us that many Governments don't like the word `proprietary'. Microsoft would vouch for that.

There is also a view that Apple, and others of ilk, would do well to co-operate with each other in the long term. The reason: Hackers. Rather than perpetually striving to keep hackers at bay, Apple can license its software to others to make it a mass-market product. When it is available everywhere, there is less incentive to hack it. On the other hand, companies can earn additional revenues from licence fees.

vipin@thehindu.co.in

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