“In settling with InterTrust Technologies Corp., Microsoft Corp. could be gaining a big advantage in the growing market for distributing music and videos online — to the detriment of competitors who now risk getting caught in InterTrust patent squabbles of their own,” Allison Linn reports for The Associated Press. “Microsoft announced Monday it would pay $440 million to InterTrust to settle a 3-year-old patent infringement lawsuit over technology for protecting music, movies and other digital content against piracy.”
Linn reports, “The settlement with InterTrust, which is jointly owned by Sony Corp., Philips Electronics NV and the investment banking company Stephens Inc., grants Microsoft a license to the Santa Clara, Calif. company’s patents in copy-protection technology, or digital rights management. The settlement should clear up concerns that big media companies including The Walt Disney Co. have had about using Microsoft technology, said Microsoft senior vice president Will Poole.”
“At the same time, the settlement could hurt Microsoft competitors who lack agreements with InterTrust, said analyst Phil Leigh of Inside Digital Media. Microsoft is battling companies including RealNetworks and Apple Computer Inc. for dominance of the digital media market,” Linn reports. “The open-ended struggle is over becoming the format of choice for everything from music downloads to video on demand. ‘If I’m a potential customer for Microsoft or Real or Apple, the advantage of this is given to Microsoft (because) I know that if I use Microsoft technology, I don’t have to worry about InterTrust,’ Leigh said. InterTrust indicated Monday that the settlement would embolden it to take a closer look at other companies that offer digital rights management.”
Full article here.
“Microsoft is battling companies including RealNetworks and Apple Computer Inc. for dominance of the digital media market”
Microsoft hasn’t even entered the market yet. Jeez, reporters already giving them a leg up.
I wonder what the real situation is on these patents. Microsoft’s SOP is to copy and steal so that is probably what they did in this case also. I guess the big question here is whether Intertrust has a case against Apple’s DRM scheme. If not, then no problem. If so, then would this be against Apple or Veridisc? And if against Veridisc, how would that effect Apple? Who REALLY owns Veridisc anyway? Again this is still a very murky area.
when will these “analysts” learn the average person doesnt care about the format or “drm” or anything else. all they want is for it to sound good and work. apple has doen that. they have a 70% market base and people are not going to change just because of a little turmoil. there may not even be any.
The point isn’t about what format consumers will choose. The point is about InterTrust pursuing patent infringement litigation against other companies’ DRM formats. According to the article, InterTrust claims over 100 DRM-related patents going back more than 14 years. If they go after FairPlay, that might muck things up for Apple while Microsoft, through this settlement, would have a green light to push their own technology.
And just because MS doesn’t have their own music store open at this time, don’t think they haven’t entered the market. Sure, Apple has the lead right now but every vendor that uses the Windows Media format stands to gain if InterTrust can go after FairPlay, legitimately or not.
Sounds like SCO styled extortion to me.
This is the world we live in, one were even ideas can be owned.
‘If I’m a potential customer for Microsoft or Real or Apple, the advantage of this is given to Microsoft (because) I know that if I use Microsoft technology, I don’t have to worry about InterTrust,’ Leigh said.
Uhmm, which kind of customer ever does reason like the above and below?
“Dear, our interests are into digital music and video. Apple has the best ever offering under all aspects but MS has a deal with InterTrust: Honey, let’s buy a PC”
Who the hell cares. When I hear that MS just shelled out $440 Million for a settlement, as a consumer I wouldn’t say “gee whiz, this company has it’s crap together, I’m going to buy their product”, when all I hear is good things (or nothing negative) about Apple and it’s music service. Why would MS have the advantage in the consumer’s eyes? They don’t.
When are we going to stop the madness of patenting software?
“Microsoft’s SOP is to copy and steal so that is probably what they did in this case also.” – Jack A
Copy and steal method has had their usefulness. It is not advantageous to MS now to blatantly use it anymore since it only gives them even worse name. This is a new Microsoft’s SoP. License stupid questionable patents or software for a big amount of cash and sic the new lackeys to go after Microsoft’s competitors. This way, MS can say 1) they are not involved in killing the competitors and 2) they can promote their behavior as ‘responsible’. Didn’t we see this with SCO as JadisOne mentioned?
Jack A, it seems to me that if a patent infringement lawsuit affects Veridisc/Fairplay then it will also affect Apple. Lawyers always sue anyone and everyone even remotely associated with a situation. Assuming that the merit exists for an infringement lawsuit, then suing Apple along with Veridisc seems pretty much a certainty in my book.
Misrosoft does something wrong, gets sued for it, and the settlement puts MS even farther ahead than before.
Deja vu!
A little math to put things in perspective..
An iTunes track costs 99 cents of which Apple gets 33 cents.
If Apple had paid FairPlay $440 Million they would have to sell 1.333 BILLION songs just to cover the DRM cost. Apple is approaching 100 Million tunes sold. Micro$oft is going to have to sell A LOT of music to pay this back.