JP Morgan: French DRM law will have limited impact on Apple Computer

“Analysts for JP Morgan, who offered its clients a 51-page report on the role of DRM in the portable music player market last Spring, issued a followup report this week detailing the impending legal situation in France as it applies to Apple Computer, saying it does not believe other countries will follow suit,” Prince McLean reports for AppleInsider. “Apple has publicly stated it is firmly against the recently proposed French law, which threatens to force Apple to open its iPod + iTunes ecosystem in the country, arguing that it would make France a haven for digital music and movie piracy. ‘The U.S. Commerce Secretary Carlos Guiterrez recently stated his agreement with Apple’s stance, suggesting France’s sentiment is not shared by U.S. lawmakers,’ analyst Bill Shope said to clients in a research note release on Tuesday and obtained by AppleInsider. ‘At this point, Denmark is the only other country that has exhibited support for the French law, and it appears the E.U. does not yet share this opinion.'”

“The analyst further believes that France’s moves to legalize DRM circumvention will be an isolated event, and offered several supporting arguments. He noted that while DRM provides a strong source of “locking in customers,” music labels are unlikely to support markets without DRM protection. ‘If the French law passes, we believe the online music providers will either choose to exit France, or they will end up with very limited content offerings in the region,’ he wrote. Shope also believes the law could end up harming the consumers and content owners by limiting their legal purchase options, and hence fueling a rise in piracy,” McLean reports. “Overall, JP Morgan believes the recent actions by the French government will have limited impact on Apple, and suspects the adverse reactions from companies and consumers will make other countries wary of taking similar steps.”

Full article here.

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Related articles:
Dvorak: What the French got right with proposed DRM law – March 28, 2006
Will Apple’s Steve Jobs bid France adieu? – March 22, 2006
Wired’s Kahney: Proposed French copyright protection law a good thing for consumers in the long run – March 22, 2006
Apple calls proposed French DRM law ‘state-sponsored piracy,’ predicts iPod sales increase – March 21, 2006
French National Assembly approves digital copyright bill; could affect Apple’s FairPlay DRM – March 21, 2006

19 Comments

  1. There is but one solution for the French “problem”…iTMS France must empty its entire store of all music, video and audiobooks and offer only Jerry Lewis’s podcast performance of “Look At Me, I’m Walking.”

  2. “The only thing the french have, is a lousy, stupid accent.”

    And HOT chicks – don’t forget that!

    Have you ever been to Paris? They have to have the highest rate of whiplash in the world.

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  3. Hot chicks in France??? You might want to check under their arms before you say that…. ” width=”19″ height=”19″ alt=”tongue laugh” style=”border:0;” />

    If you want hot chicks, try Stockholm or Moscow instead!

  4. Sadly, my guess is that there are influential people in France rubbing their hands with glee at the thought of foreign music-sellers pulling out of the country. Remember, this is a nation paranoid about the dilution of its culture, where laws are passed mandating a certain amount of French material broadcast on each radio station. These folks wouldn’t shed a tear at the thought of non-French music becoming hard to buy.

  5. ‘If the French law passes, we believe the online music providers will either choose to exit France, or they will end up with very limited content offerings in the region,’ he wrote. Shope also believes the law could end up harming the consumers and content owners by limiting their legal purchase options, and hence fueling a rise in piracy,” McLean reports

    And that’s what Apple’s statement said as well.

  6. My gut feeling is “So what?”

    I agree completely with Apple on this but I think that even if they are forced to open up Fairplay, 80% of the people in America (and France) will still buy iPods and use iTunes. They’re just BETTER than anything else and people have figured that out.

    Besides, the record companies will NOT let consumers use files without DRM.

  7. Well I know people are talking about Apple and the music industry but what about the other industries affected by this. Does this mean that the DRM on Windows formatted media (.wma or whatever) has to be opened up. The media market, isn’t that huge? Well it sure makes it interesting but methinks that Apple will still be there for a while.

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