“As of July 27, consumers can go to Real’s Web site and download software, dubbed Harmony, that lets them play songs purchased at Real’s download store on any portable player they choose — including the iPod. What’s more, Real is in talks to license Harmony to other online stores that might also want to sell to iPod users — without Apple’s approval,” Peter Burrows writes for BusinessWeek.
“Apple CEO Steven P. Jobs should clearly and firmly squelch Real’s attempt to infiltrate Apple’s music empire. GartnerG2 analyst Mike McGuire sums it up: ‘At some point, Apple may decide to license [its iPod technology] to others. But they should do it for good business reasons, not because a rival issues a press release or some beta software.’ 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,” Burrows writes.
“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,” Burrows writes. “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.”
Full article here.
MacDailyNews Take: We do not believe that Apple was caught off-guard with Real’s move and they have a number of options. We’ll just have to wait and see what Steve Jobs’ NeXT move will be.