08/10/2005, 7:35am, EDT

Wednesday, August 10th

Real: Apple could undermine Harmony, file lawsuit

Real Networks says its Harmony technology, which allows consumers to securely transfer music purchased at its Rhapsody music service to digital music devices such as the iPod, puts the company at risk of a lawsuit by Apple. Macworld UK reports that in its latest SEC filing, Real warned investors that possible litigation by Apple could cost the company millions in legal fees and affect its future operating results and that its Harmony technology may be undermined. ""Apple will continue to modify its technology to 'break' the interoperability that Harmony provides to consumers, which Apple has done in connection with the release of certain new products. If Apple chooses to continue this course of action, Harmony may no longer work with Apple's products, which could harm our business and reputation, or we may be forced to incur additional development costs to refine Harmony to make it interoperate again."

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MuppetFloss

Translation

08/10, 8:30am, EDT

We've made some egregious errors in judgement and are headed down a road which forks in 2 directions: one goes over a cliff and the other into quicksand.

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gambit23

Brainiacs at Real

08/10, 8:38am, EDT

"Real Networks says its Harmony technology, which allows consumers to securely transfer music purchased at its Rhapsody music service to digital music devices such as the iPod, puts the company at risk of a lawsuit by Apple."

Considering their methods: ya think?

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jpellino

Yeah.

08/10, 9:04am, EDT

That's what you want to tell your investors, that you're placing the company in the path of an oncoming train. And all because you misjudged the market and have spent the last year whining that Apple won't let you ride on their coattails.

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ecrelin

I'm sueing too!

08/10, 9:08am, EDT

Ya know now that I think about it about 15 years ago car manufacturers started using torx head screws for everything. My toolset doesn't have any, its harms my ability to fix things and is going to cost me big money to "keep up". Those insideous bastards! I'm sure Apple's roadmap has a big "Keep Real in mind, don't intentionally hose those wonderful folks" as they move forward.

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henryblackman

They should allow it

08/10, 9:52am, EDT

I wonder if Apple will, as before, quietly change the way the DRM works to block Harmony again, or they will "quiety" decide to allow it.

After all, it's hardly a closed system if more than one service can use it... and Real is barely a competitor.

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robmorton

open

08/10, 10:13am, EDT

As much as I love the iPod and as much as I have purchased from iTunes, I still wish Apple would license the DRM to other companies. It is very short sited of them to not want clones in the market place. People currently buy the iPod because it is well designed and stylish. People buy from iTunes because it is simple and works with the iPods. As long as Apple keeps that going for them, they will only gain from licensing to other companies. Not to mention that it would put a final nail in Microsoft's ability to market their version.

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shawnce

selectively open

08/10, 10:54am, EDT

The simple fact of the matter is that iTMS and iPod a growing market share fast then the market segments they are in. Also long as things are on that trajectory Apple has little need to license out FairPlay to other player manufactures (especially ones that compete in Apple's main market segments) or to license FairPlay (or derivative) to content providers so others can sell DRMed music (on CD or online) into Apple's iTunes/iPod solution.

With that said I fully expect Apple to selectively license or codevelop various additions to Apple's "music solution". Things like the iTunes cell phone, etc.

Apple holds the cards and so far they appear ready to play them well. Keep them close and slam them down as need to keep things rolling.

(rumors of interesting things in the near future in this space)

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chas_m

Get Real, Real!

08/10, 11:06am, EDT

Muppetfloss hit the nail on the head. "We're on a dead end road, and unless Apple (or someone) buys us pretty quick, we're dead."

Apple *will* license Fairplay to others -- when the time and terms are right. Certainly not by force. Homey don't play dat.

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aristotles

I don't care - no mac su

08/10, 12:09pm, EDT

They do not offer mac support so I really don't give a crap about Real. As a mac user, opening up the iPod to Harmony means absolutely nothing to me since they refuse to support the platform of my choice.

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Feathers

Slimey software

08/10, 1:29pm, EDT

Considering that it was pornography that drove Real's presence in the media player market, it's kind of ironic that they are now getting royally fcuked by Apple!

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