In a rare open letter from chief executive Steve Jobs on Tuesday, Apple urged record companies to abandon digital rights management technologies.
The letter, posted on Apple's website and called "Thoughts on Music", is a long examination of Apple's iTunes and what the future may hold for the online distribution of copy-protected music. In the letter, Jobs says Apple was forced to create a digital rights management (DRM) system to get the world's four largest record companies on board with the iTunes Store.
But there are alternatives, Jobs wrote. Apple and the rest of the online music distributors could continue down a DRM path; Apple could license the FairPlay technology to others; or record companies could be persuaded to license music without DRM technology. The company clearly favours the third option.
"Imagine a world where every online store sells DRM-free music encoded in open licensable formats," Jobs wrote. "In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat."
Imagine a world where every online store sells DRM-free music encoded in open licensable formats
Steve Jobs, chief executive, Apple
Jobs' letter is a bit surprising in that Apple, with the most successful online music store on the planet, has profited by including DRM technology in its products, said Mike McGuire, an analyst with Gartner. "I think it's really interesting that the company that's the greatest beneficiary of DRM systems is basically telling the industry, 'This is a problem, you need to fix this'," he said.
RealNetworks saw Jobs' letter as a vindication of its efforts to encourage interoperability between music services, which led as far as the Harmony software that allowed songs bought from other online stores to play on the iPod.
"We've been talking about the need for open formats for a very long time," said Dan Sheeran, senior vice president for digital music at RealNetworks.
The letter appears to address critics of the iTunes Store in Europe, most recently evidenced by a decision in Norway, where regulators deemed the iTunes Store illegal.
An Apple representative said the letter was not written in response to those recent legal decisions.
"Much of the concern over DRM systems has arisen in European countries," Jobs wrote. "Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free."
"You've got to hand it to Steve Jobs; he knows how to attract attention and how to deflect attention," said James McQuivey, an analyst with Forrester Research. "He turned the whole European DRM question on its ear. 'You want me to open up FairPlay? Well, I don't even want FairPlay'."
The Recording Industry Association of America, however, issued a statement interpreting Jobs' letter as an offer to license the FairPlay technology. "Apple's offer to license FairPlay to other technology companies is a welcome breakthrough and would be a real victory for fans, artists and labels. There have been many services seeking a licence to the Apple DRM. This would enable the interoperability that we have been urging for a very long time," it said in an emailed statement.
Opening the FairPlay DRM technology wouldn't be a wise strategy because Apple would have to give up the secrets of how that technology works, and it's likely that a hack for the technology would appear very quickly, Jobs wrote. Under its agreement with the record companies, Apple has just a few weeks to fix FairPlay if a breach is detected — otherwise the record company can pull all of its songs from the iTunes Store, he wrote.
"Apple has concluded that if it licenses FairPlay to others, it can no longer guarantee to protect the music it licenses from the big four music companies," Jobs wrote in his letter.
An Apple representative declined to comment on the RIAA's interpretation of the letter.
Jobs countered arguments made by regulators in Europe that iPod users are locked into iTunes by noting that Apple believes…
Talkback
Maybe Saint Steve could lead by example and sell those tracks that do not need DRM without it, and clearly mark the difference.
... it may be a condition of the big four that no non-DRM'd music be sold in the same store. Certainly, if I were Universal, the last thing I'd want is a superior product showing mine up - and when it comes to iTunes, the labels set the rules.
I don't know of any mixed DRM and non-DRM online music shop; it's all or nothing (I vote for nothing, which is why Rupert Goodwins shops exclusively at bleep.com. Unpaid advert.)
I will ask Apple whether they've considered this, but as Apple never answer our questions I can only recommend that you don't wait underwater.
Apple could release their DRM code to MP3 makers in confidence to allow them to use their music, but they don't...now they say this? I'm not against DRM per se, but when it restricts you to a certain player, then yes. They could really lead by example by letting other users use their technology.
I did wonder about this (out loud) until someone pointed out wippits.com. They are UK based and quite above board. Their service clearly lists the tracks that are and are not DRMed.
Sadly I can't get all the tracks I want there .. in fact none of them. They simply aren't big enough.
I also wonder if this would be deemed a restriction to trade. Would a requirement of this kind even be legal?
I think there might be some technical issues with this in that the DRM gets slipped on at purchase. So I don't think giving it to other MP3 makers would help. Unless you are referring to MP3 player makers and I think Steve touched on that in his letter in that the more people who know about the keys to the Fairplay kingdom the more chance they have of being stolen. Broken DRM is probably worse than no DRM.
That said Apple have licensed Fairplay to other companies. Actually other company to be strictly correct - I think the Motorola ROKR had a full iTunes player so Apple can do this.
I was referring to the MP3 player manufacturers. I personally refuse to get an Ipod as if I end up downloading a number of iTunes, and then wish to upgrade my Ipod in the future to a different brand, then I will have to repurchase all my MP3s. DRM is extremely good for Apple as it ties you in to their hardware/software.
Apple's DRM is hardly a lock-in. The point is that if you buy from the store you can write the files to an Audio CD and there is no lock in. I don't think Apple could get away with such "open" DRM if they were starting today. OK the quality might not be as good... It is infected with DRM... A list of any other excuses why you wouldn't personally buy from the store. But are you the target market? Mr and Mrs Smith who buy from the store to get a track they want NOW probably don't need to worry about the lock in.
Put it this way. Buying a "Plays for Sure" device is now looking a bit sick now as Microsoft have come out with yet another DRM format and this time it is lock in all the way baby. Apart from the lock in with the three squirts for three days (and is it three plays?) But people have discovered the fact that certain songs aren't even allowed to be squirted at all. Nobody mentioned THAT at purchase.
Worse than that - all your OPEN music which you transfer to the device - The Zune - gets coated in a thick layer of DRM - even if you wrote the bloody song yourself.