French iTunes law changes

A newly proposed amendment may offer Apple some reprieve in France, following industry speculation that the company would likely pull out of the market before sharing its FairPlay DRM technologies with rivals. A new amendment offered by the French Senate would allow Apple to maintain its iPod/iTunes ecosystem if it were to negotiate deals with record labels and artists and obtain their authorization to use FairPlay DRM to copy-protect the songs its sells through iTunes. The draft Senate amendment, expected to be voted on this week, would allow Apple keep its FairPlay DRM proprietary if it were approved by the artists and the copyright holders themselves. Although Apple, which called the bill "state-sponsored piracy," would be required to renegotiate contracts, the proposed change would create a regulatory authority to oversee the exclusive music formats.

That governing body would have the power to order that exclusive file formats be shared if it was believed that the obstacles the DRM imposes are "additional to, or independent of, those explicitly decided by the copyright holders," according to The San Jose Mercury News. The loophole could allow Apple to continue to sell songs and the iPods in the country, after obtaining the necessary authorizations.

Both consumer groups and the government backed the initial version of the bill, which was passed in March by France's National Assembly, which required companies to share their DRM and copyright technologies with rivals. France's efforts are to keep the market from being dominated by a single vendor or company. The proposed law has the support of the French Minister of Culture, Renaud Donnedieu de Vabres, while Apple's stance has earned the support of US Commerce Secretary Carlos Gutierrez.

Songs sold from Apple's iTunes can only be used on its iPod, similar to Sony's ATRAC3 files that can only be played on its own music players; however, Sony's file format has a much lower adoption rate compared to iTunes, which dominates virtually all markets with marketshare of more than 70 percent in the US, and has a significant impact in many other international markets.

Although the music labels have been trying to regain control of the digital music market, Apple's iTunes and iPod ecosystem has maintained a stranglehold, but also kept pricing at a single, fixed rate of $0.99. Music labels have wanted to increase the price on popular songs, while lowering the prices of others, but were unsuccessful in their bid, as Apple recently renewed its iTunes contracts that Jobs' desire for fixed pricing on all songs.

by MacNN Staff