Apple’s options if French law forcing DRM interoperability passes

Lawmakers in France are considering a law that would, among other things, force Apple to open its FairPlay DRM, making the iPod and iTunes interoperable with other music players and online music outfits.

The Associated Press outlines Apple’s options if the law passes:
1. Apple could look for technical solutions to comply with the new law in France while maintaining its format exclusivity elsewhere. Sales from iTunes sites are already restricted to local markets using credit card details. But preventing newly interoperable iPods from being used outside the ‘walled garden’ would be much harder — although shipping them with French-only software could help.
2. Apple could simply drag its feet over compliance and wait to be sued. Court proceedings are long, damages relatively light, and class action lawsuits are impossible in France. Apple might figure that iPod + iTunes profits would dwarf the penalties it could face.
3. Apple could withdraw from France, Europe’s third-largest music download market, or threaten to withdraw while seeking a change in the law.

Full article here.

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Related articles:
French law that would force Apple to open iTunes Music Store to non-iPod devices far from settled – March 17, 2006
If passed, French law would force Apple to open iTunes Music Store to non-iPod devices – March 15, 2006
Law that could have forced Apple to open iTunes Music Store to non-iPod devices blocked in France – March 14, 2006
French law would force Apple to open iTunes Music Store to non-iPod devices – March 13, 2006

49 Comments

  1. Well, couldn’t Apple also meet any legal obligation arising from the proposed law by just licensing the use of FairPlay DRM software or iTunes to other select companies selling mp3 players in France? Or license the use of other DRM software for use on French-sold iPods only?

  2. Let them buy Zens. Block all French telco IPs. If they want to live in a bubble let them. Boycott France. It’s all about the bottom line. If USA boycotts their products in the USA, then they take their law and rip it up.

  3. Does not anyone get this right?

    From what I have read (through several sources, though I must admit my French is quite rusty) of the details of the law, it (the proposed law) in absolutely no way forces Apple (or anyone else for that matter) to supply competing formats or media without DRM attached. Neither Apple nor anyone else will be forced to provide media for other systems. (Where would you draw the line? If a small French company were to start building, shipping and selling some device that only played some obscure format with an even more obscure DRM attached would every media provider have to make all their available media [every song, every video, etc.] in that format too?)

    As I understand the proposed law (which looks like it won’t pass anyway as opposition appears to be mounting against it), it merely makes it legal to strip DRM off the media without penalty if the stripping is only for personal use so you can play the content on your player which does not support the original DRM. (There are also provisions in the law for specific penalties if you do this for some other reason than for purely personal use.)

    This in no way will force Apple to change the way it does business in France.

    What **MIGHT** happen is the music and movie industries *may* go to Apple and all the other major content distributors and pressure them to stop selling in France. The only people that **MIGHT** be hurt are the law, if it is enacted, are the music and movie industries and other content generation groups. If they continue to provide content to Apple, Napster, Real, etc. then Apple and the others won’t have an issue with this law if it is enacted. I doubt these groups will stop providing content to Apple, etc., but in theory they could could.

  4. I predict Apple would withdraw or threaten too if the law is passed. Therefore leaving the french with no music download choices for those who own an iPod. It may cause another french revolution who knows. I seriously doubt Apple would even consider the first two choices at all. There within there rights to use the technology they developed since the record companies said they would not let them sell the music without DRM. So the French should go after the record companies since there the ones inforcing the DRM for there music.

  5. Don’t you see what is happening? This is just the beginning, first france makes these demands, then once they win, eventually Microsoft will start dumping money into trials all over the world to force Apple to lose grip over the music industry. This can’t be a good thing. Apple may have no choice but to withdraw. Whatever they do, opening the DRM or Licensing it will only concede defeat to Microsoft and it will be yet another closed and crappy Microsoft victory.

  6. Wrong!! let the French iPod users get off their asses and show their support. If not, they can go across the border and use internet cafes to get their music.

    Are members of the French govt being paid by Apple competitors?

  7. Just don’t do a French version. Doesn’t prevent French people from buying over the internet. Easy, just don’t restrict by country. Allow iTunes users to access ANY countrys store, not just their regional one (which is the way it should be anyway).

  8. “…it merely makes it legal to strip DRM off the media without penalty if the stripping is only for personal use so you can play the content on your player which does not support the original DRM.”

    – Hmmm, if what you say is true, then I think it would be a very good thing if this law were passed.

    “What **MIGHT** happen is the music and movie industries *may* go to Apple and all the other major content distributors and pressure them to stop selling in France.”

    – Now if this law were to be adopted in other major countries as well, would the music and movie industries have much of a choice in the matter? Would they stop providing content completely and lose out on potentially billions of dollars just because they can’t enforce DRM? They may be stupid, but I don’t think they would go that far. In the end, this may be a very good thing for the consumer.

  9. What Geo said is the best idea. Apple must license Fairplay. It is a good idea for users because then consumers have a wider choice of where to buy. It is a good idea for Apple because each licensee has to pay Apple a fee based on sales so Apple makes money on all sales even if the other services eventually eclipse iTMS. It is good for Microsoft because it would make WMA obsolete (that’s a good thing). It is good for Real because it would make Real Audio obsolete (same again). It is good for the French because they can claim they were the ones who caused it to happen. It is good for the Labels because now every download service would be using the same compatible service but the Labels didn’t get to choose which (this is good because it steals power away from the Labels). It is good because it would reduce global warming (not completely sure about this one). This is a win, win, win, win, win, win, win all around.

  10. That being said, if I don’t like IE on my version of Windows I should be able to fully uninstall it and only use Firefox because IE is not part of Windows.

    The difference between Apple’s monopoly of iPod/iTunes is that theirs is one derived from customer choice on which product they purchase based on friends recommendations and advertising and marketing influences. Apple also develops both the hardware and software. Microsoft OTOH only develops Windows to run on any manufactures hardware so they should legaly allow anyother software maker to also run their apps next to Windows such as web browsers (yes I know it is an old argument). Not allowing this to happen is what creates an illegay monopolistic advantage.

    If you don’t want to play your music on an iPod then don’t buy one. Or better still go and support the RIAA and buy a CD for every device that you want to play your music on.

  11. Screw the French.
    Stay in France and get a law suit.
    Then when suit is filed, don’t cut off the music store and iPod sales, limit them.
    100 iPods a day will be sold in France.
    100 songs will be sold in France.
    You will only be able to buy on someones birthday.
    Your second aunts birthday.
    Steve Jobs will sing all songs sold in France.
    He will sing off key.
    He will sing in a foriegn dialect of an isolated tribe in Sout America.
    The French are going to back down.
    Espeacially when everyone learns that Steve Jobs hacked into every nuclear facility in America.
    They will beg for mercy.
    Steve will consider it.

  12. @Shadowself

    Thank you for at least looking at the law and reading beyond these jingoistic morons’ comments.

    For all you fsckwits out there, shadowself is correct. There doesn’t seem to be anything in the law that would force Apple (or the other suppliers) to produce the files in other formats.

    NEITHER would it for Apple to supply the software to do the “stripping” of Fairplay.

    I’m English living in the French Caribbean and can tell you that your analysis so far is just plain wrong!

    MDN Magic Word: Attack, as in “Attack anything that moves.”, like your fsckbrained president.

  13. I believe this is another attempt by the French to preserve their culture. Roughly 10 years ago this same group of “leaders” mandated that ALL radio stations in France play a MINIUMUM of 8 hours of French language music/programming EVERY day. This completely pissed off all the progressive stations in France.

    Here we go again. iTunes allows the French consumer to purchase a wide range of music of which a small percentage (representive of the infuence, or lack thereof, of the French language in the world today) is in the native French language.

    How do the French deal with this “threat?” By trying to push it out of their country. Apple will surely leave the French market if this bill as interpreted above passes. No way they make an exception. Not worth it…in an age when technology is changing so fast…

    I agree it is a pitty that the French language is threatened. But there is a better way to insure it’s longevity. Create! Lead! Grow! in the arts, music, literature, entertainment. Make people want to learn French. Forcing your current French speakers to listen to French when there are far more interesting things going on in the non-French speaking parts of the world is just sad. I remember 20 years ago when most people chose to learn French as a second language. Now, I’d guess French is a distant 6 or seventh place…

  14. Hang on. The law requires non-iTMS bought music to play on an iPod, so the other stores need to remove their DRM. Apple needs to do nothing since iTMS-bought songs can already be burnt to CD then re-imported. Problem solved.

    If all DRM goes by law, wont everybody get a subscription to ‘name your store’ and download the lot!

    I demand all French web sites to be compatible with English speakers like me.

  15. let’s see, from ’76 to ’85 is 9 years, from ’97 to’05 is 8 years, totalling 17 yrs, that’s more than half of 30, so, sorry MacDude he’s been there for more than “most of it’s existance” (sic). the world wide web was invented using the NEXT OS, so there! Go Steve and Apple!

  16. Please correct me if I’m wrong (in this forum that goes without saying), but can’t you already “strip the DRM” using iTunes by writing to a CD? After that, you could convert to WMA/MP3/etc. and load it on a non-iPod player.

    BTW, Apple would not have to “pull out of France” completely. Apple could simply shut down iTMS France, but still sell iPods. That wouldn’t violate any laws and that it where Apple is making the money. The iPod can be legally loaded with music from purchased CD’s.

    My advice is to vote with your dollar and avoid buying any products with DRM if you can help it. I don’t steal and I resent having to deal with the complications of DRM caused by the thievery of others. Prosecute them. Leave me alone.

  17. You’re totally wrong about that law being for the preservation of French culture. It is about the implementation of the EUCD, the European DMCA which has been forced on Europe by the USA.

    BTW, there is a slight contradiction in your comment. You seem to think that it was dumb to mandate all radios to play 8 hours/day of French productions, then you say if you want to preserve the culture then create. What use creating, if the radio don’t play your creation ? That was the problem.

  18. French culture? Been there, and it looks like a bunch of poseurs surrounded by arab kids who would want to work and natives who don’t. The pastries were good, and the Maginot Line interesting, but not worth the trip. otoh Spain rocks. No one gives a darn, like Vegas without the lights.

    The amazing thing is the RDF hasn’t got there. Probably just being Americain is enough to ruin it.

  19. Here is a cool link that somewhat describes what is going on in France:

    http://today.reuters.com/news/newsarticle.aspx?type=worldNews&storyid=2006-03-17T230956Z_01_L17342207_RTRUKOC_0_US-FRANCE.xml&rpc=22

    How can anyone start a business under those conditions? No doubt this is why the last thing French that anyone heard of was parfait.

    Although snuggling up to Saddam was a good try. Invest in the market no one else wants, as long as it lasts……………..oops!

  20. Hey looooooong we saw them too. Sheer force of will, the willing to sacrifice thousands, and good equipment overran amazing defenses. The French never would have tried it, too hard. The cemetery is well cared for however, but maybe we yanks pay for that as well.

    It is important to remember that Ike mentioned that it did not matter where the invasion happened if it succeeded. France was a truckstop on the way to the ultimate goal. If we could have sidestepped it like most of the Japanese occupied islands in the Pacific, we would have. Deep down the French know this. They have a hereditary memory that makes them submissive in fact, though not in voice, unless they are fighting Africans or Asians.

    The good thing is, I am sure they are doing their best.

    Yeah that’s the bad thing too.

    Happy Paddy’s day. Look out it’s AMATEUR NIGHT!

  21. i guess , you just dont like France regardless , i am not sure why but
    america econmy is doing great .. the war is going great , i am not sure when you wil be able to repay your debt to CHINA but evering is great
    why don’y you keep this forum for what it is and not for your bias politics !!!
    just remenber how you ran aways from a couple of North Vietnamese .
    France ended up bankrupt to save your ass from the british , remember
    or you have a very selective memory or maybe none at all

  22. Shadowself,

    I wish everyone would read your post. You are absolutely correct.

    ALMOST EVERYONE IS GETTING THIS WRONG

    I think it’s both a question of editors who don’t understand technology and editors who don’t understand French.

    THE LAW DOES NOT REQUIRE APPLE TO DO OR CHANGE ANYTHING

    All it does is allow consumers to strip DRM for personal use and thereby transfer songs purchased from iTMS (FairPlay) to nonPods or from other stores (Janus) to iPods.

    Yes, consumers can already do this by burning to CD and re-ripping, but that is far inferior to *software* that could strip the DRM conveniently, fast, and without quality loss.

    Still just as people aren’t half-assed about joining the Apple ecosystem today with the thought of burning to CD and re-ripping, people aren’t going to jump into the ecosystem thinking that constantly stripping DRM would be worthwhile now that it’s legal beyond doing the CD trick.

  23. The best part of this whole situation is the comment made by the “consumer group” supporting the legistlation. They said that consumer would be willing to pay twice as much for songs if it was playable on all music players.

    This is socializism in its perfect form. Someone who can use Itunes and pay 99 cents, now has to pay 1.99 for a song so other non Ipod users can listen to it too using Itunes.

    This whole effort is really Itunes users subsidizing non Ipod users.

    The choice of not using an Ipod has an additional cost. I am not surprised because someone is making a lot more money if the price doubles.

    An that is the whole problem. Itunes songs are too cheap. (I think they are priced perfectly) but consumer groups, you know the ones working for all of us feel we are not paying enough for music.

    Pass that crack pipe and read more Stalin.

  24. I thought the DRM from iTunes songs could already be stripped with (a version of) iMovie.

    Even if the DRM is stripped, it would still be in the AAC format, which isn’t supported by most of the other existing digital music players out there. So it still can’t be played on the current players.

  25. Wow, Apple buttboys in full force…

    The French proposed law doesn’t require Apple to do anything. It gives consumers the right to break DRM. Big Whoop to Apple, major pain for the music labels and Microsoft. Hell, I wouldn’t be surprised if Apple is secretly suporting the legislation–it won’t do anything to iPod sales but meanwhile would put a stake through Microsoft’s model for the music business.

    Someone explain how the froggie legislation really hurts Apple? What percentage of music loaded on iPods is purchased from iTMS? 1%? I’ve got six iPods with a combined (30+30+15+2+60+512MB) 135.5 GB of storage space. I’ve purchased thirty or so songs from iTMS since it opened. I probably haven’t purchased even that money. I wouldn’t be at all surprised if I downloaded more songs from emusic during my trial offer this month that I ever have from iTMS. Apple’s revenue from music sales is tiny; revenue–and profits–from iPod sales is huge. Apple’s margin on a $249 nano is around $50, correct? In order to make that much on music sales Apple would have to sell someone 500 songs. Who buys 500 songs from iTMS?

    Where is any research showing that having DRM-free music would hurt iPod sales? Does anyone really think being able to hack iTMS songs would encourage people to use other players? 99% of the content on iPods currently is songs ripped from owner’s CDs, downloaded from P2P, copied from friends, or taken off of usenet. These tracks could be played on any mp3 player, yet the iPod owns the market.

    Any stats out there concerning iPod ownership among emusic members? Are people that belong to emusic or allofmp3.com statistically more likely to own a non-iPod mp3 player? Wouldn’t surprise me if it was just the opposite.

    This legislation would, on the other hand, kill subscription services. Someone belonging to one of the Microsoft modeled subscription services would be free to download as many songs as they like, remove the windows media restrictions on copying from the files, then cancel their subscription and keep the music. That’s a hell of a lot more significant than people being free to hack the average 2 songs they buy from iTMS a month. The French legislation would kill the subscription model–the whole basis of the thing, that you would lose your music collection if you cancel, would be gone in France if French subscribers are free to strip the DRM from their subscription-bought tracks.

  26. After having read all the threads about that French law, I have come to the following conclusions :

    1) Real journalism is dead in America.

    2) Most Americans know nothing about France, or any other country.

    3) The study that says that Mac users are more intelligent, and better informed than PC users is a crock of shit.

    4) In terms of productivity, there is at least two fields where Mac and PC users are equal :
    a) hate mongering
    b) spewing stupid comments
    And sorry, but Mac users are not more creative than PC users in those same fields.

    Thanks to some intelligent and reasonable Americans, able to inform themselves, to think and form an independent judgment, there’s still hope for the Good Ole USA.

  27. The French are great providing you go right to the bottom of the country. The Languedoc-Roussillon region is lovely, as are the people. Probably something to do with the climate.

    Never cared for Paris much though. Snotty bastards up there.

  28. Shadowself – totally agree

    one issue that I didn’t see addressed is that the analysts all assume that Apple cares whether or not DRM is on the media they sell. I do not believe they do – it exists to appease the content providers and RIAA. We all know there is an easy way to strip off the DRM using iTunes already, albiet with degraded sound quality. Content providers may be nervous, but unless the content providers will not allow sale in France because of the 3rd party DRM-strippping software, Apple does not have to change a thing.

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