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iPO Reports - Norway Responds to Apple DRM Letter

Wednesday, February 7th, 2007 at 11:10 AM - by

The open letter from Apple CEO Steve Jobs denouncing DRM caught the attention of readers around the world - including those in Norway. Torgeir Waterhouse, senior advisor from the Norwegian Consumer Council, read the letter, and sees it is a step in the right direction. He commented "We're happy to see Steve Jobs take on the responsibility that follows from Apple's role as one of the leading companies in the digital sphere and comment on the complaint issued by the Norwegian Consumer Council."

The letter, which is openly available on the Apple Inc. Web site, is assumed to be a response to demands from Norway's Consumer Ombudsman to change the licensing at the iTunes Store so that all MP3 players will be compatible with music downloads, and not just the iPod. Apple contends that the copy protection restrictions were imposed by the major recording labels, and that it is bound by those terms.

By claiming that the music labels are requiring digital rights management technology be included in downloaded songs, Apple is saying that it can't change until the labels reverse their stance on copy protection. That may be, but Mr. Waterhouse still sees it as Apple's responsibility to offer products and licensing that comply with Norwegian law. He added "Apple and iTunes Music Store should be addressing the issue of record companies and DRM themselves if it needs to be addressed - and as we've stated earlier it's iTunes Music Store that's providing a service to the consumers and therefore has the responsibility to offer up a consumer friendly product."

That does not lift the blame from recording labels, in this case, Universal, Sony BMG, Warner and EMI, and Mr. Waterhouse feels they need to carry their fair share of the responsibility, too.

One of the complaints that the Norwegian Consumer Council brought to the Consumer Ombudsman was that iPod+iTunes amounts to a locked system, since the FairPlay copy protection in downloaded songs is compatible only with the iPod. Mr. Jobs notes that although he would prefer the removal of copy protection, the system seems to be working well for his company as well as Microsoft and Sony. Consumers are not bound to a single choice for players, and the innovation in the marketplace seems to be strong.

A proprietary system, however, is still proprietary, according to Mr. Waterhouse, whether it comes from Apple, Sony, or Microsoft. He feels that these companies are doing a disservice to consumers by locking them into one player/one music store deals. That philosophy, he said, is unfair to the public, and goes against consumer protection laws in his country.

The big bomb shell Mr. Jobs dropped in his letter is that he feels DRM is ineffective, and that Apple would embrace DRM-free music downloads in a "heartbeat." That notion flies in the face of the record label's stance, but Mr. Waterhouse said it as a healthy step in the right direction.

"If this means that Apple is willing to the kick the lock in technology from the iTMS iPod combination this is really good news - news that should be put into action as soon as possible to bring us all one important step closer to a well functioning digital society."

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nealg said:

member since 22 Mar 2006 with 123 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 1:09 pm

So Apple explains their position to the public and the danger to their business model and Norway says thats nice, we understand to a degree be we really don't care. Either the pressure will cause the labels to cave and give up DRM schemes for music or Apple will take this to court or if Norway really pushes this, Apple will close down the iTunes store in those countries that this is an issue. If it is the last option, I don't see the Norwegian consumer benefiting from this. JMO though.

Neal

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A guest said: (hide)

Wed Feb 07, 2007 1:27 pm

Does this mean that Entertainment systems like Microsoft Xbox 360, Sony Playstation, etc. are not available in Norway? Or has the Norwegian Consumer Council also made official complaints about these "lock in" proprietary systems? What is the difference? No one is forced to only buy music from Apple's music store, or without options for alternative music players.

I would like to know how many consumers have actually filed a complaint with this consumer rights group initiating this action.

This seems silly and frivolous. We all make product choices every day that have options that are limited to those products and are not "open" with competitive products.

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Tiger said:

member since 17 Jun 2003 with 1018 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 1:41 pm

Yes, it is silly and frivolous. And hypocritical to boot. If they didn't like the way Apple is selling the iPod linked to its own software, why was it even allowed in the country in the first place? And why is Microsoft still allowed to make Access for PCs only? Not to mention the gaming consoles.

In other words, life isn't fair, the Nords need to move on. It's a tempest in a teapot. Their entire 4.6 million population, of which what, 1/20th may have an iPod, is but a blip on the radar.

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brett_x said:

member since 24 Jan 2006 with 322 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 1:54 pm

Good point, guest, about making product choices every day. That got me thinking: how far does their consumer protection reach? How different is it if you purchase Mac OS X software that doesn't work on a PC? Doesn't it lock you into the Mac OS X operating system (a proprietary system)? Even worse.. what about MS's OEM versions of Vista? You can't even transfer them to a new computer...

It's not really the same thing, but there has to be a line between those two and I am wondering where it is drawn.

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der passant said:

member since 06 Dec 2006 with 6 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 2:13 pm

Blank Norway. And thats as nice as i can put it.

You are not forced to buy music from Apple.

You are not forced to play music that you choose to buy from iTunes on an iPod

You can play on your PC, MAC and CD player and stream it to your stereo.

Blank Norway. Pull the iTunes store. Maybe Micro$oft will sell a few Zunes over there.

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A guest said: (hide)

Wed Feb 07, 2007 2:17 pm

[quote=In other words, life isn't fair, the Nords need to move on. It's a tempest in a teapot. Their entire 4.6 million population, of which what, 1/20th may have an iPod, is but a blip on the radar.[/quote]

Yes. But Norway is one of the richest nations. They have the second highest GDP per catpita in the world. Only Saudi Arabia and Russia export more oil. Considering the long dark winter that is flush with cash, one could conclude that they are probably a good market for consumer electronics.

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Edison Carter said:

member since 10 Aug 2006 with 228 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 3:09 pm

Guest wrote:
[quote=In other words, life isn't fair, the Nords need to move on. It's a tempest in a teapot. Their entire 4.6 million population, of which what, 1/20th may have an iPod, is but a blip on the radar.

Yes. But Norway is one of the richest nations. They have the second highest GDP per catpita in the world. Only Saudi Arabia and Russia export more oil. Considering the long dark winter that is flush with cash, one could conclude that they are probably a good market for consumer electronics.[/quote]

Yes, they are doing quite well (pun intended) with the oil exports. A guest mentioned how many Norwegian consumers complained, can anyone point us to the numbers. I think following the money may point to the source, I am thinking Nokia.

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A guest said: (hide)

Wed Feb 07, 2007 3:13 pm

I am from Norway but I am critical to Forbrukerombudet's stance on this and I together with others have been in touch with them and even got a response where they tried to explain why and how, but I'd say that this letter punches a whole in their balloon. It seems like they really didn't see what iTMS/iPods were about, namely a package solution, just as much as an xBox is it. What riles me more, is that have never lifted a finger on behalf of us who have chosen some other solution than Microsoft's, when we are denied access to services because of MS' proprietary technology. I would have believed more in them if I had seen at least a few examples of interventions in such cases, and believe me, there are enough of those.

The following is what Lars Helgesen from their office wrote to us (my translation from Norwegian):

"... the stronger the linking is, the easier it would be for us to argue at the Market Council and the courts that this linking is consciously done to lock the user to certain download services or equipment..."

Seems to me that exactly that won't be such an easy argument, after all, if Jobs and Apple can prove that it was the labels which insisted on DRM, not them. I'd say they have to make a shameful retreat then. Hopefully, they will use their energy attacking the cases where consumers really are locked into a system. Read: Microsoft/Windows.

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dhp said:

member since 22 May 2003 with 182 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 3:47 pm

The game console and computer analogies don't really work, because those software/hardware combinations are limited in market by technological obsolescence. For example, the typical user is going to buy Mac OS X multiple times as new versions become available that take advantage of new hardware advances. The next time you buy a computer, you might go with a PC and run Windows or Linux.

We buy and use music in a very different way. Songs may go out of style, but they don't become obsolete. I still enjoy records my parents bought in the 1960s by listening to them on a turntable made in the 1980s that I bought on eBay in the 2000s. We are allowing the record labels (and, by extension, the digital music stores) to create a future where it will be virtually impossible to enjoy music beyond the increasingly short generations of digital technology without multiple purchases of the same music. (It's different from the vinyl-CD transition because with downloads you'll usually not get any quality advantage in the process.)

It's easy to support Apple when they have he best player and store. But what will all of you do when the next upstart comes out with a player that blows the iPod away, or if Apple falls victim to an accounting scandal?

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A guest said: (hide)

Wed Feb 07, 2007 3:52 pm

I say we get an email addy for the idiots in Norway running this and we just fill up their inbox with complaints that what they're doing is stupid and sets double-standards. Seems to be that everyone can have products that link to other services except for Apple. So, let's tell them about it.

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A guest said: (hide)

Wed Feb 07, 2007 4:44 pm

Quote:
Only Saudi Arabia and Russia export more oil

Really? The US's biggest supplier of oil is Canada.

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A guest said: (hide)

Wed Feb 07, 2007 4:49 pm

dhp wrote:

It's easy to support Apple when they have he best player and store. But what will all of you do when the next upstart comes out with a player that blows the iPod away, or if Apple falls victim to an accounting scandal?

Oh, I don't know...how about continuing to enjoy the iTS music I've purchased?

After all, I can play it on my iPod or on my Mac or on my PC or on my Motorola cell phone or I can burn it to a CD and play it just about anywhere.

Is there a problem here?

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burrito said:

member since 07 Aug 2005 with 177 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 4:57 pm

i think ol' steve just needs to tell them that itunes DRM is a fact of life, and that they can either live with it or live without itunes.

iCEO giveth, iCEO taketh away.

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gslusher said:

member since 13 Nov 2002 with 2088 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 7:51 pm

Guest wrote:
Quote:
Only Saudi Arabia and Russia export more oil

Really? The US's biggest supplier of oil is Canada.

Ask the Japanese.

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A guest said: (hide)

Wed Feb 07, 2007 8:02 pm

Guest wrote:
Quote:
Only Saudi Arabia and Russia export more oil

Really? The US's biggest supplier of oil is Canada.

Where in his post did he say anything about the US?

In other words, Norway is the world's third largest exporter of oil ... to the world.

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Rainy Day said:

member since 07 Jun 2005 with 607 posts, unranked, send him a message or view his profile

Wed Feb 07, 2007 8:58 pm

I hope, with the Apple Corps settlement, that Apple can now start selling non-DRMed, independent music. Let the consumer vote with their wallet. That will do more to end DRM than anything else, i suspect.

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A guest said: (hide)

Wed Feb 07, 2007 9:14 pm

OK, Apple's options were 1) to offer a great downloadable music service called iTunes, by agreeing to protect the songs in DRM, or 2) not offer the service. According to Norway, Apple should have went with option number 2 since that was the only way it could offer the songs. Yes, that would have serviced artists and consumers really well. People would just do what they always have done, downloaded the music for free.

Norway does not understand that Apple cannot remove the DRM, and licensing Fairplay puts its contracts at risk. Moreover, in a free economy why should Apple have to license its technology when 1) consumers are not complaining, and 2) Apple was completely transparent about the terms of purchasing music?

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A guest said: (hide)

Mon Feb 12, 2007 2:58 pm

dhp makes some good comments about the bad game/computer analogy, but it goes even further. Through iTMS Apple is not selling something they own, the labels and artists own the music. The labels have indeed entered into a contract with Apple requiring them to implement DRM to protect the content that the labels own, however they have not said that the implementation must be iPod specific. Apple has chosen not to license its DRM to other player manufacturers because the inability to play iTMS purchases on other players is one of many driving forces for consumers to purchase an iPod. I personally know people who have bought an iPod for that very reason, even though he wanted a ZVM instead after his first iPod died. Because he could not play his already purchased iTMS songs on a ZVM he was forced to buy another iPod. All Apple has to do is license its DRM implementation and it will be in compliance with both the laws of Norway and its contracts with the labels. The comment about Access is also not correct. Access not working on Linux or Mac is not a problem because it is Microsoft's product, they own and can create it for whatever platforms they choose (just like they made IE/Office work on the Mac because they wanted to). If Microsoft was a reseller for Adobe Photoshop, and implemented a DRM scheme to prevent it from working on a Mac, that would be analgous to what Apple does to other people's music.

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