Legislation forcing Apple to open iTunes to users of media players other than the firm's iPods will have a far-reaching impact
Gartner is predicting widespread disruption in the digital content market
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French DRM ruling will spark protracted legal battles

Wake-up call for rights holders, says Gartner

Robert Jaques, vnunet.com 27 Mar 2006
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The recent decision by the French government to seek legislation forcing Apple to open iTunes to users of media players other than the firm's iPods will have a far-reaching impact on the owners of digital content, Gartner predicted today.

France is currently voting on a bill to let consumers circumvent digital rights management (DRM) schemes from firms including Apple and Microsoft to ensure 'service-content-device' interoperability.

New compensation models may evolve as a result, according to Gartner, but only after a "protracted legal fight".

The warning comes after the French parliament's recent vote to make changes in French copyright laws that would force Apple and Microsoft to open up their DRM systems to allow interoperability among various hardware devices purchased by French citizens.

The legislation now heads to the French Senate for a final review scheduled to start in May.

"To call this legislation disruptive would be an understatement," said Gartner research director Mike McGuire.

"Forcing companies such as Apple and Microsoft to provide information about their DRM technologies so that protected content can be played on any device has the potential for confusing a marketplace that is just starting to evolve.

"French politicians have told the press that the bill is designed to protect customers by forcing interoperability."

McGuire added that there is also an undercurrent of concern regarding two US-based companies (Apple and Microsoft) dominating the distribution of music and video content online.

"Taking steps to avoid the establishment of monopolies might be laudable, but there is no evidence in this case to suggest that Apple has achieved monopoly status in terms of music services," he said.

"Other devices and services exist for consumers to use, including services distributing files in Microsoft's WMA format protected with its own DRM."


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