“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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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