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.

Advertisements:
Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
MacBook Pro. The first Mac notebook built upon Intel Core Duo with iLife ’06, Front Row and built-in iSight. Starting at $1999. Free shipping.
iMac. Twice as amazing — Intel Core Duo, iLife ’06, Front Row media experience, Apple Remote, built-in iSight. Starting at $1299. Free shipping.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.

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.

    ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  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.

  8. This is potentially a win-win for Apple and us consumers.

    Honestly, how many of you use iTMS and an iPod “BECAUSE” of its DRM? I didn’t get my Pods because it. If Apple removed DRM tomorrow I’m not going to throw away my two iPods and run out to get an iRiver.

    How many of you are just waiting for the removal of DRM at iTMS so you can get an iRiver or a Sony MXDVC-1000002548762ABC?

    I see this as helping Apple but probably hurting the other music services.

    Those of us that have iPods will continue to use iTMS, and those foolish enough to have another player can now also use iTMS without the hassle of burning a disk and re-importing etc. This will hurt Napster et al I think.

    If another music site has a song that I want that’s not on iTMS I’ll be able to buy that and easily get it on my iPod.

    What’s wrong with that?

  9. As usual, since there is the word France in the news, everybody goes overboard and start a bashing fest instead of trying to analyze or comment the news. And I understand why : those stinking French cowardly vote laws for themselves without bothering if they’re going to piss Americans, then they arrogantly don’t give a flying fuck…

    The US should send an ultimatum to France : either you’re with us and you courageously adopt the American Way, either you’re against us and we wipe you out of the surface of the planet. The world will be better anyway without a bunch of cowards who dare confront us incessantly.

  10. American education…. my god where, oh where did it go so badly wrong?

    Aren’t you all pround of your little selves? Making cutesy little jokes about the French. I bet you have them rolling in the aisles – or more likely the schoolyard – with your intelligent wit and high-brow humor.

    Me? I laughed and laughed… especially at Black Jaques Shellack’s final comment: “Maird.” Err, what language is that by the way? It sure as shit isn’t French, but then an socialogically challenged, educational retard wouldn’t know that.

    And he [and the rest of the bigoted retards posting here] also probably doesn’t know that the language he speaks is composed of 60% French. Directly from French. Same word, same spelling, same meaning.

    My god you’re so, so dumb, it’s funny.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.