“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.
Kind of ironic that:
HARMONY DOES NOT SUPPORT Mac OS X
Real MUSIC Store DOES NOT SUPPORT Mac OS X
Screw Real.
Ladies, Gents…
If I plan to ‘also’ use an iPod through a stereo, should I rip MP3s @ 128, 160 or 192?
I’m not thinking AAC because I also want the flexibility to burn MP3CDs to use in DVD players, car MP3players, etc. (FWIW, I’ve already tried to burn a MP3CD using an AAC file. Does Not Work!)
Okay, so they use an OPEN AAC standard and tout it as OPEN-SOURCE, and then they’re not happy when someone offers more choice.
128 vs. 192… come on. With Airport over a quality stereo you can tell the difference. Also, if converting to another file format for use on a cheaper MP3 player (not taking my iPod hiking) means less info lost on the way.
get your head out of the sand…
iPod uses ISO open standard AAC and plays standard MP3s
OSX based on UNIX
Anyone McZealots who complains about better not EVER buy an All-Zones DVD player… so they can play foreign DVDs.
I love iPod and iTunes… but
I hear the silence from Apple; I imagine the epithets being hurled at the desperate glazer’s son; I sense the paddles of intrigue churning. I’m glad Apple has shied away from a knee-jerk reaction. Working out the response involves delicate legal and PR issues, as well as careful examination of what Real has done. We’ve come a long way since the days when Steve could’ve just walked over and socked him one in the kisser. Ah, but that would be sweet.
Circumventing DRM. Very much the same case like deCSS (DVD Jon vs. The movie corporations) Stealing profits is what they are doing. I think shit is going to hit the fan soon.
If I were REAL, I’d be crapping in my pants right now with all the silence from Apple. There is NO way that Apple is going to take this lightly and if they are planning right now their response, no doubt will they have REAL cornered.
They circumvented Fairplay without Apple’s consent. The funny thing is that I’ve never thought a corporation would ever do something that illegal and attempt to label it okay. Can’t wait til the legal hammer comes down on REAL AND those who use Harmony.
What else do you want? You want to download something from the Wal-mart store, too? I’ll pass.
Stealing profits my ass.
seriously… It’s advertised you’re buying “music” from a iTunes “music” store. You’re not buying an “iPod” or “iTunes” file.
If they allow you to rip unprotected CDs why should they not allow you to use DRM AAC files?
What next, only allow CDs bought at Apple approved stores to be played on iTunes/iPod?
If they don’t allow Real DRM AAC, then they should ONLY allow iTMS DRM AAC, and no MP3, WAV, AIFF… as these all aren’t bought from Apple.
You’re buying music, not files.
I stayed quiet since I’m not an expert in business or laws. But I am surprised at some of the comments. Most forget that Harmony Technology does not attempt to unlock an encrypted file. What Real tried to achieve is compatible encryption to FairPlay. IANAL, but DMCA is intended to deal with breaking encryptions (i.e. decryption). This is not comparable at all with PlayFair. The labels may not care much since either way, they get the royalty.
You can see this as positive or negative for Apple, but I think only Apple knows best what their position should be. After all, they have the lawyers and the accountants. I hope that Apple take their time to decide whether this is good for their business or they need to take steps against Real. Personally, I’d like to see Apple find ways to compete using innovations. Forget about Real and let Real die naturally. It won’t take long unless they find a better business plan.
Basher has nailed the important issue here.
In the long term once a standard has been establish and commercial pressures slice the fat from the margins through volume, a significant majority of income will come through licencing the standard. Why is Microsoft so eager to gain marketshare? Microsoft were never in it to sell music, nor players. It wants the licencing DRM fees for WMA. They licence standards and they’re the richest company on the planet because so. This is the war. And Microsoft and Sony missed the opportunity.
The issue in this case is that Real have developed the skeleton key (Harmony) to the vault (iPod) and now they want sell copies to the rest of the robbers (Napster, Musicmatch, Walmart). This licence is Apple’s hard-earnt treasure and they should be the one’s that benefit in the long-term for the foresight, risk and brand building they undertook. When the time is right (when their marketshare slides), they will open it up.
How they will combat this; no one is sure. But one thing’s for certain – this will really rub them up the wrong way after Real’s pathetic posturing over the past 6 months. They’ll ensure that Real will leave the table damaged goods.
> Why is Microsoft so eager to gain marketshare? Microsoft were never in it to sell music, nor players.
Correct… so therefore, if Apple blocks… they’re not in it to sell music or players… which makes them in it only for the money.
Apple’s treasure isn’t the DRM. They didn’t brand build the AAC DRM. They brand built iPod.
And I don’t know about you… but having my choice of music stores… makes me more prone to buy into iPod… I don’t want to be stuck with something where I’m linked to one company (think microsoft trying to force the world to use Explorer or WMP or WMA)
ah… the drama.
I think this will likely end up being the end for Real. While they may not have decoded Fairplay, they are certainly mimicking it. And I’m willing to bet it’ll be shown that this is a violation of Apple’s intellectual property.
This is certainly an intriguing story unfolding here, with very large ramifications. This could potentially lead to the big tag line “Now iPod Compatible!!!!” plastered all over Napster. That thought makes me feel dirty…
“And I’m willing to bet it’ll be shown that this is a violation of Apple’s intellectual property.”
I’m willing to bet that you don’t know much about intellectual property.
I find the logic on most of these arguments rather strange.
What if Apple made a car and you could only use Shell gas in it?
And, what if someone came out with a way that you could gas up at other brands of gasoline stations. Would you then hope for the demise of the company that has given more choices? I’ve loved apple products since 1976 but i can not see penalizing another company for giving me more options even if in the process it takes away profits away from my beloved company. The iPod is wonderful and Itunes great a neat software, but hey! some people out there might very well want programs or tunes from Real audio.. If Apple is the inventive company that we think they are, they should come up with a different business model. I don’t want to be Itunes -locked to other options.
Actually for me the “real” issue is, Why would anyone purchase Real AAC songs to play on their iPod when they may stop working without a moments notice. Obviously Real has reversed engineered Apple’s FairPlay so that they can offer AAC-files in their own protection scheme, then convert to FairPlay for iPod users. But this type of thing is similar to the software that stripped DRM so that the file was a standard AAC file. Apple just stopped the files from playing. The best method for compromising a DRM is to just totally remove. Why doesn’t Real just convert their protect files to MP3 files on the fly. At least that way some poor idiot who thinks, “GREAT, I can shop at the Real store for all my digital music now” would at least be assured that their purchased music will continue to work on the iPod in the future.
Actually for me the “real” issue is, Why would anyone purchase Real AAC songs to play on their iPod when they may stop working without a moments notice. Obviously Real has reversed engineered Apple’s FairPlay so that they can offer AAC-files in their own protection scheme, then convert to FairPlay for iPod users. But this type of thing is similar to the software that stripped DRM so that the file was a standard AAC file. Apple just stopped the files from playing.
The best method for compromising a DRM is to just totally remove. Why doesn’t Real just convert their protect files to MP3 files on the fly. At least that way some poor idiot who thinks, “GREAT, I can shop at the Real store for all my digital music now” would at least be assured that their purchased music will continue to work on the iPod in the future.
doPi…
Let’s put it this way… you’re talking about buying the exact same music (at a higher bitrate) at the Real store and putting it on the iPod.
Sure it’s great for the customer.. but if that were the point, well, hey.. they’d be selling MP3’s and we wouldn’t be in this mess.
The point is that the iTMS is meant to pump iPod sales. Needless to say, iPods are selling.
Can you imagine if Real actually had the audacity to license this disgusting software to other companies?!
Okay… maybe I can take them using it on their own store.. At the rate they’re going, they’ll be out of business in a few years..
But imagine if they were actually rescued out of the financial doldrums by licensing technology that imitates Apple’s DRM?! It’s ludicrous.
If Apple wanted people to have that technology, it would have licensed it. That’s Apple’s call.
As far as I’m concerned.. Real can just take all the money their have left in the bank, hand it over to Apple Corps, and we’ll kill two birds with one stone.
Why would ANYONE license anything if they could just do this, and with a little elbow grease turn a potential series of FEES into a REVENUE STREAM?!
Apple does have Lawyers, and I’d like to hear the response to that one from Real’s Lawyers.
Thanks Mike for your level headed response. I see your point specially as it relates to turning fees into a revenue stream. I was thinking that we also have seen lesser known companies come out with cheaper alternatives to ink cartridges. Some people will buy Canon and Epson and others go generic on cost issues. Apple does not need the bad will of a law suit. Thed pie is not finite. Every one can share. Once upon a time there were many record labels and it was great fun. To my knowledge no one threaten to redesign record players so we could not play other label’s records on them. Competition has a way of sorting this things out without the need for lawyers.
From: Wendy
I’m willing to bet that you don’t know much about intellectual property.
Well then that is a bet you are going to lose. But I’m sure you’re secure in your belief that you are right, so I will let you have that small consolation.
Nice to see you firing shots in every thread though. You’re just not going to get much of a rise out of me with your smart-ass behavior, so if that’s what you’re going for I apologize for not being receptive to boring, pervasive and predictable MDN posting habits.
When I bought my iPod, Apple didn’t even have an iTunes Music Store. I now have a few songs which I purchased online – from Apple, along with tracks I ripped from CDs or digitised from Albums or downloaded from online or from a friends computer.
I have songs from all of these places and it’s great – my iPod IS my music player at home, in the car, and when I’m out and about.
So all of you Apple-apologist holier-than-thous are going to berate me for purchasing a Harmony track from Real? What the hell business is it yours?
If Real is infringing on Apple’s (Fairplay’s) DRM legal rights, that is one thing. But putting a Harmony track on an iPod (or in iTunes) is no more wrong than grabbing that Metallica track from Limewire – and I would expect most to agree that it is far better in that the artists and label are getting their cut.
So Chill out, kick back and watch the show. Myself, I can’t wait to see Apple’s response.
@ Wendy:
So you think you’re an intellectual, too. It doesn’t show.
@ everybody else who matters:
If the iTMS has all the songs I want I wouldn’t care much about anybody else, whoever that is. Let them be, market rules apply and will show if they can survive. Quality? Well, 192 kBit/s isn’t any better either. It doesn’t hurt Apple to have a little bit of competition, as they’ll be forced to improve their service and step up openings of international iTMS. Europe definetly needs more songs in the local iTMS.
@ Wendy:
So you think you’re an intellectual, too. It doesn’t show.
@ everybody else who matters:
If the iTMS has all the songs I want I wouldn’t care much about anybody else, whoever that is. Let them be, market rules apply and will show if they can survive. Quality? Well, 192 kBit/s isn’t any better either. It doesn’t hurt Apple to have a little bit of competition, as they’ll be forced to improve their service and step up openings of international iTMS. Europe definetly needs more songs in the local iTMS.
Mr. O’Riley, I would recommend that you rip your MP3s at the Variable Bit Rate 160kbs, highers quality, Joint Stereo, Smart Encoding Adjustments on and Filter Frequencies Below 10 Hz set to off setting. Sure, 192 kbs would sound a little better (in trheory) but they would also be a little bigger in file-size. Joint Stereo is a more efficient way of encoding audio that is equaly loud on both left and right tracks; so, a sound effect that is only heard from the right speaker gets encoded for the right track but a sound effect that is heard from the centre gets encoded as mono. To your ears the positioning of the effect sounds the same but on the file it takes half the size than a normal stereo MP3.
I think the issue here is very simple. Fairplay DRM is a privately owned DRM technology. To use it you have to get the permission of the owner and most likely pay a licence fee.
Real have done neither and are therefore using it illegally.
It will probably take a few years to go through the courts, as is the nature of the legal system, but in the end the will get their ass kicked.
I can only assume that their strategy therefore is to draw it out as long as possible in the hope of building market share, etc. and that any legal penalties will be a lot less than the profit they think they will make.
I think another thing we have to consider, is the defintion of DRM.
from google:
“Digital rights management (DRM) systems help protect the copyright of materials by defining how the content can be used.”
The whole point of DRM (corrct me if I’m wrong) is to make the content secure to discourage violation of music copyrights. It’s to protect the MUSIC, not the method of delivery.
This makes legally downloading a copy of a song possible. Without a form of DRM, there would BE no itms.
Most reasonable people would not say that DRM’s main point is to define how music is purchased, but would agree that DRM defines only how it is to be used.
Real’s use of Apple’s DRM means that Real has defined use of the AAC as whatever Apple decides.
It seems like some here are starting to listen to some sort of reason, however… or at least being open-minded… which is always a good thing, right?
It’s no use saying ‘oh it gives the consumer more choice so Apple should let it be’. If Apple believes what Real has done will harm Apple and believes it to be against the law then Apple will act to stop it.
In offering the iPod/iTMS package, Apple is engaging in wonderfully COMPETITIVE practices – NOT ANTI COMPETITIVE. The company is simply saying ‘this is the product which we are placing on the market stall, what has the competition to offer?’
Real has decided it can’t/won’t provide a product which they can compete with Apple and instead of competing, it is attempting to steal access to the Apple package and in doing so dilute iPod/iTMS’ competitivness.
If I came home and found a stranger in my house who claimed that – because he had managed to forge a key that fit my lock – had every right to live in my home too and share all its amenities… I’d call the police quickly!