BUSINESS
US Congress eyes Apple's FairPlay
08-04-2005
by Deirdre McArdle
The US Congress is currently considering a mandate that could see the end of proprietary digital rights management systems, such as Apple's FairPlay system.
In a move that could effectively change the face of digital music, the US House of Representatives Intellectual Property sub-committee is discussing a bill that could require digital music companies to use a single digital rights management (DRM) system, which would mean that music downloaded from all services would be playable on any device.
The sub-committee's primary concern is the incompatibility between online music stores like iTunes and Napster leading to inconvenience for consumers.
The company most affected by a decision such as this would be Apple; it currently dominates the digital music market with its iTunes Music Store (ITMS) and if a unified DRM system were in place, users of Apple's iPod device would no longer be required to buy music from iTunes. Notably, representatives from Apple did not show up at the hearing on Wednesday, a move that chairman of the sub-committee, Lamar Smith (R-Texas), criticised.
"Apple was invited to testify today, but they chose not to appear," Congressman Smith said. "Generally speaking, companies with 75 percent market share of any business, in this case the digital download market, need to step up to the plate when it comes to testifying on policy issues that impact their industry. Failure to do so is a mistake."
Other music industry representatives were present though, and they sent a firm "leave well enough alone" message to the sub-committee. Chief technology officer of Napster William Pence told the sub-committee that the music industry will eventually promote interoperability itself without the need for government intervention.
"It is my belief, and the essential point of my participation today, that marketplace forces will continue to drive innovation in the DRM arena with attendant consumer benefits -- new ways to enjoy digital music at a variety of different price points -- while also gradually 'solving' the interoperability problem," he said.
Essentially the committee has said that it doesn't want to force a common DRM system on digital music companies, but it has hinted that if players such as Apple, Microsoft and Real can't get their act together and find a solution, it may have to.
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