Apple CEO: Nix Anti-Piracy Technology

Steve Jobs Pressures World's Major Record Labels To Drop Music Protections

(AP)  Apple Inc. indicated it would open its iTunes store to other portable players besides its ubiquitous iPod if the world's major record labels abandoned the anti-piracy technology that serves as the industry's security blanket.

Steve Jobs, Apple's chief executive, made the case for abolishing the protections known as "Digital Rights Management," or DRM, in an open letter posted Tuesday on the company's Web site.

The essay, dubbed "Thoughts on Music," cited the anti-piracy technology as the main reason music sold through iTunes can't be transferred to other portable players besides the iPod.

If not for the DRM safeguards, Jobs asserted that Apple would be able to create a more flexible system that would allow iTunes music to work on other devices, such as Microsoft Corp.'s recently introduced Zune.

Jobs suggested that consumers unhappy with the status quo should urge the world's four largest labels — Universal Music Group, EMI, Sony BMG Music Entertainment and Warner Music Group — to sell their online catalogs without the DRM restrictions. Those four labels distribute more than 70 percent of the world's music.

"Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace," Jobs wrote. "Apple will embrace this wholeheartedly."

ITunes' incompatibility with other music players has drawn fire in Europe, where Apple's limitations have been branded anticompetitive. Over the past eight months, consumer rights and protection groups in Germany, France, Norway and the Netherlands have lodged complaints against Cupertino-based Apple.

Raising a bit of irony in his dissertation, Jobs noted that three of the four largest music labels are owned by European interests.

Even if iTunes remains incompatible with other players, Jobs argued that most consumers can still easily load their digital music on just about any computing device that they desire.

That's because most consumers already own a library of CDs unencumbered by DRM restrictions or acquire other music files, either legally or illegally, that aren't copyright protected.

Based on Apple research released for the first time Tuesday, Jobs estimated that just 22 out of every 1,000 songs stored on an IPod were purchased from iTunes.

[beagleboy991]

I'm old enough to remember the switch from vinyl to CDs, and the price shock that came with it. Albums were selling for 9.98 list price, and all of a sudden, it was $15.98 for the CDs. There were plenty of assurances that when the technology was mature that the price would fall accordingly. Well, we all know that never happened, but the record labels were happy to keep all that extra money. So now we all know what a blank CD costs to manufacture, and many know that the artists are getting pennies per CD-so where does all that profit go? Not into signing new and talented artists from what I see passes as music now. Just lots of promotion and advertising-and oh yeah, good old payola to play the *** that all sounds alike. Maybe the consumers are sick of being ripped off. I've never stolen music-I want the artists to get paid for their work, but the obscene amount charged might inspire some to think it's OK. And-I can burn my CDs to itunes easily, but not my DVDs-I paid for both, why shouldn't both be portable?

[darkfyreaol]

I think the primary reason for music piracy is the restriction that the big labels place on their music. Telling consumers that it's illegal to play their music (for themselves) in another format/on another music player is nonsensical. And Big Brother-ish.

[grumpy1968]

Hey here is an idea....How about dropping all the DRM junk AND lower the sales prices of the product (cd's, dvd's, etc). CAN YOU SAY PROFIT!

Let's think about it for a second. Less money spent on "spyware" laden protections, hence less lawsuits, right?! Less time spent developing new software that is circumvented BEFORE it hits store shelves, right? More "legal" downloads of many products?! Who knows maybe even the general publics attitude about "illegal" filesharing would change? Have you ever given that a thought?

LISTEN UP execs, your most important asset, the CUSTOMER, is getting tired of your games. Catch up with the times or suffer the consequences. A fair price, without a lot of hassles, for a product will keep everyone in business for a long time. Now how long are you going to continue to ignore your most important asset? Litigation against dead people, working single mothers, grandparents, computer illiterate parents, and who knows who is next does not make a good business model period!

[dreamerguy18]

Steve Jobs has a great point on the marketing scheme for the European owned companies. He is protecting his company just like they are but In reality they are all just hurting themselves. Jobs knows this and is just spreading the word to the other companies.