On March 21st, French lawmakers approved legislation that would force Apple Computer Inc (Apple), Sony Corp, and other digital content providers to share copy-protection technologies with their rivals. The bill is designed to prevent the control of the online music market by any single music-playing technology. Currently, songs on Apple's online music catalogue, iTunes, are protected by Apple's FairPlay Digital Rights Management (DRM) software. The format of the songs is incompatible with most non-iPod music players and the iPod is designed not to play music purchased from competitors' music services. Under the draft legislation, however, Apple would be required to allow its iPod users to purchase and download music from rivals' sites and to allow its iTunes songs to be playable on any music player. A spokesperson from Apple has said that the implementation of the legislation will "result in state-sponsored piracy". Some analysts have speculated that Apple may abandon the French market rather than share its FairPlay technology and allow iTunes songs to be played on competitors' MP3 players. Others, however, have applauded the move as a step to ensure that one or two US companies do not take control of this segment of the market. The bill, which also sets out new penalties for file sharing, now moves to the Senate for final approval. For several news stories, see the following sites: http://edition.cnn.com/2006/BUSINESS/03/21/apple.france.ap/; http://makeashorterlink.com/?Y5B411FDC; http://news.com.com/2100-1028_3-6051495.html; or http://makeashorterlink.com/?E2C435FDC Summaries by: Clare McCurley

E-TIPS® ISSUE

06 03 29

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