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Apple Responds To iTunes "First Sale" Question 323

atallah writes "It looks like Apple has come out and explained its position on resale of songs. It is interesting that they didn't flat-out reject the idea. Check out this Business Week article."
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Apple Responds To iTunes "First Sale" Question

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  • by JeffTL ( 667728 ) on Monday September 08, 2003 @10:34PM (#6906424)
    Legal considerations are beside the point; it is very near impossible at this time to sell an iTunes song without also selling your Mac...and your credit card. There's always ripping from a CD burn, but at that point it isn't an iTunes song, it's a below-quality CD rip.
    • by Vyce ( 697152 ) on Monday September 08, 2003 @10:42PM (#6906484)
      I think this is the whole point of the argument. It's very much akin to if a subscriber to Everwaste actually owns the character and items aquired by that character in order to sell them on eBay. If it stands up in court, it just measn that a) Apple has to facilitate a free transfer function or b) Apple removes DRM. (Guess which one would happen first.) I guess the could do C) change the TOS to make it apparent that you don't own the damn thing at all, but are paying a rental fee for long-term use.
      • Or they could theoreticaly set it up so that a song could be transfered from one account owner to another. But it's impractical again
        • This wouldn't stand up. If you could do so for free, then there would instantly be huge sites devoted to sharing music amongst one another, maybe with a cover charge of a few dollars, in case someone decides not to play fair.
          • They can prohibit sharing by requiring you to reauthorise with iTunes first, removing the rights to the song and only after that would a buyer get his new license.
            • by Pharmboy ( 216950 ) on Monday September 08, 2003 @11:03PM (#6906601) Journal
              They can prohibit sharing by requiring you to reauthorise with iTunes first, removing the rights to the song and only after that would a buyer get his new license.

              So if a song gets sold 3 times in 2 years, they have had to authorize/reauthorize it 4 times and only getting paid one time, less than one dollar (and pay royalties). Unless they charge a handling fee for transfering (say 25 cents) so you to make it a deal, you have to sell for 25 cents, so it is half price. Then again, even IF they made the same money to sell first, or help resell, the music producers are going to pressure them to push new tunes, so THEY make money. Remember the lawsuits with Garth Brooks, trying to get royalties for reselling music?

              There really are some problems. It IS unreasonable to ask Apple to subsidize everyone's auctions by doing the changeover for free, but almost any fee is alot of money compared to the whole price. So they are correct, there are technical problems given how cheap the 99 cents is to download.
              • Good points. And Apple pays the labels $0.65 per song, and gets $0.99. They have to do what they do in the $0.34 that's left -- develop the software, run the servers, negotiate with the oily lawyers for the labels, pay for the bandwidth.

                They still have a way to go on the store yet, even for Mac users. Last night I tried to buy some Warren Zevon (RIP) and all they had was one album, and several partial albums. The annoying "partial album" results from the patchwork of rights -- they have permission for thi

        • by Pharmboy ( 216950 ) on Monday September 08, 2003 @10:57PM (#6906561) Journal
          this raises the "library" issue as well. If I own a song, can't I let others "borrow" the song for a period of 24 hours, and they have to promise to "delete" the song (virtually returning control back to me), so I can let someone else "borrow" it?

          This was the theoretically legal basis for pirating on BBSes in the 80s (a few anyway). They had one legal copy, and they let other borrow it. Of course, MS software has EULAs that say you can't do that anymore. This of course has its own problems, because when I go to Kinkos and rent a box, am I not borrowing or renting the software as well as the hardware?

          That is why they have DRM, which takes us full circle if it denies them the legal right to resell it....got a headache now...
          • I was just thinking actually. It should be technically feasible to write a piece of software that would stream music from one machine to another, but the key being it would delete the original on the fly after a sumcheck of the particular block it was working on. While the system obviously wouldn't work with the current iTunes system, it might be possible to open up a legal door for filesharing between a small group. Just a thought.
          • by grahamm ( 8844 ) <gmurray@webwayone.co.uk> on Tuesday September 09, 2003 @03:22AM (#6907730) Homepage
            So maybe what is needed is a statute which makes it mandatory for all DRM systems to allow the purchaser to exercise their first sale rights and transfer the rights to someone else. Though I suppose that there is much chance of this happening as a snowstorm in hades.
          • Fiction? (Score:3, Interesting)

            by Channard ( 693317 )
            This was the theoretically legal basis for pirating on BBSes in the 80s (a few anyway).

            And is still used on some rom-swapping sites these days. But it's more of an urban legend than anything else since - correct me if I'm wrong - it has no legal weight at all. Instead this '24 hours and delete' has become a particularly hard to kill meme which a great many people seem to believe but in actual fact is pretty much untrue.

        • Why does the transfer of the electonic version of the song need to be free? Considering the (realtively) small amount of time it would be used (less than 0.0001% of sales) , I can easily see the cost of the transfer being $2-5 per song. Transfer accepted, but not cost effective.
      • by mcg1969 ( 237263 ) on Monday September 08, 2003 @11:14PM (#6906666)
        If it stands up in court, it just measn that a) Apple has to facilitate a free transfer function
        Wrong. They will by no means be required to facilitate a free transfer function. Just because you have the right to do something doesn't mean that they have to help you do it---and certainly not for free. That would be like saying that a record company should pay your postage if you sell your CD over eBay.

        Having said that, I think it would be great if Apple would provide this facility.
        • by Kjella ( 173770 ) on Tuesday September 09, 2003 @01:05AM (#6907240) Homepage
          Wrong. They will by no means be required to facilitate a free transfer function. Just because you have the right to do something doesn't mean that they have to help you do it---and certainly not for free. That would be like saying that a record company should pay your postage if you sell your CD over eBay.

          I think you could do a pretty good case when you show that Apple is refusing to acknowledge a change of ownership in their DRM, and so directly ignore the doctrine of First Sale. If you want the physical analogy, it would be having the right to sell your propery - only it is biometrically locked to you. And you have a company that can modify that lock, only they refuse to do so stating they have no legal obligation to help. Do you think that would be acceptable?

          Kjella
          • by Vengie ( 533896 ) on Tuesday September 09, 2003 @04:37AM (#6907924)
            Oh Kjella....I love reading your posts...but for once I have to disagree. The doctrine of first sale assumes that the company, once having sold you said item, no longer has any control whatsoever, and so therefore no action is taken on the company's part. Since the transfer costs Apple money....it is not within the spirit of the doctrine of first sale. CAVEAT: Transferring the ACCOUNT [i.e. giving someone else your password and selling them the account with all its songs] should be fully legal by the doctrine of first sale -- since it requires NO intervention from apple.

            In your lock case, what if the company able to modify the lock was NOT the company that sold you the product? Would you expect them to do it for free?

            Because apple did not reject the legality issue outright, citing either .Mac agreements or iTMS agreements, It looks like they have ratified [defacto] the right to resell these songs. For a 99 cent track, the verification and effort required are simply impractical.

            [If you wanted to transfer say.....500 songs, There should be some nominal fee to be able to do that....]

            And as always, I heart Kjella.
      • by davesag ( 140186 ) on Tuesday September 09, 2003 @03:06AM (#6907666) Homepage
        Setting up a transfer function is a good idea. A lof of the music (CDs) I have were given to me as gifts over the years. How can I buy an album for a friend via the iTMS? I think such a system, whereby I could transfer the ownership of the files, would boost sales as the gift giving market is huge after all.
        Also, what happens to my music library when I am dead? How can I leave my music to my loved ones?
    • by bcrowell ( 177657 ) on Monday September 08, 2003 @11:50PM (#6906851) Homepage
      There's always ripping from a CD burn, but at that point it isn't an iTunes song, it's a below-quality CD rip.
      I often download iTunes songs, burn them to CD, and then rip them. The quality sounds fine to me. I don't personally do it for resale or illegal copying; I'm a jazz musician, and when I want to practice and memorize a new song, I make versions of it that are electronically sped up and slowed down so that it's in 6 or 7 different keys, so that I can practice playing along with it in all those different keys. This of course falls under the personal use exception to copyright, not the doctine of first sale.

      The cool thing is that when you have a digital technology that doesn't have a bunch of plastic padlocks built into it, different people can do different things with it, and they don't have to say "Mother may I."

      It was interesting that the article claims there are legal decisions from the copyright office saying first sale doesn't apply to digital stuff -- that's the first I'd of heard that. Can't say I really care, though: Congress gave me the right of first sale, the personal use exception, and the fair use doctrine, so a bunch of unelected bureaucrats can take them away from me when they pry them from my cold, dead hands.

      • by King_TJ ( 85913 ) on Tuesday September 09, 2003 @12:23AM (#6907053) Journal
        Yeah! That's what surprised me too. I have never heard the "Right of First Sale" doctrine questioned before when it comes to digital works.

        If this is, indeed, the case - and the courts do decide that digital works aren't covered by it, that really opens up a whole can of worms.

        Among other things, it means Microsoft is right after all, when they want to stop you from reselling unopened/unused OEM versions of their operating systems that were originally bundled with new PCs. (First Sale doctrine is the main argument people had in their favor, when trying to recoup money lost when they were forced to buy their new laptop or desktop system with Windows pre-loaded on it.)

        Even the "personal use" exception seems to be under fire these days, as the publishers of digital works keep trying to find more ways to milk extra $'s from people (DMCA, etc.).

        Unless things change, one of these days, you just might find it has become illegal to practice existing music without paying for a "musician's license" from the recording industry. (We're sorry, but without a license issued by the original copyright holder - you're simply engaging in attempted illegal reproduction of our copyrighted works, Mr. Musician!)
    • but at that point it isn't an iTunes song, it's a below-quality CD rip.

      Ripping off of a CD should not cause any sound degradation at all if done propertly. It's the process of encoding it as some lossy format that degrades the quality.
  • by Anonymous Coward on Monday September 08, 2003 @10:34PM (#6906427)
    that's because apple wanted to see what they could *really* charge for online music
  • by Incoherent07 ( 695470 ) on Monday September 08, 2003 @10:37PM (#6906444)
    Apple comes out looking like they (a) understand copyright restrictions and took that into account already, and (b) still don't want to be the RIAA and crack down on this sort of thing. This is called "design". They made it difficult enough to sell iTunes songs that they don't need to worry about reselling, even if it is legal. That said, someone's going to find a way around it eventually, if current trends hold.
    • Like Lessig said:

      Code is law.

      They've eliminated the doctrine of first sale for all practical purposes with their copyright monopoly and the ever present threat of DMCA enforcement.

      Apple makes pretty computers and music players but I know I didn't elect them.

      In a way it's good that they've tried to weasel out of this- they are at least acknowledging that in theory the right of first sale might apply to digital bits. That means it's not a license, it's actually a sale. In the words often attributed to
      • First sale. (Score:5, Interesting)

        by mindstrm ( 20013 ) on Monday September 08, 2003 @11:25PM (#6906729)
        Please show the court the object you purchased.

        The doctrine of first sale doesn't apply just to copyright.. it applies to everything. You can only sell something once.. then it's not yours anymore.. the same goes for a book.

        Apple isn't weaseling out of anything.. they are merely showing that something is not their problem to solve.. they were up front about what you were paying them for. The rest is up to you.

    • Around...how? (Score:5, Insightful)

      by KalvinB ( 205500 ) on Monday September 08, 2003 @11:24PM (#6906727) Homepage
      Let's see, you pay 99 cents for the song and now you're going to resell it. Unless it's no longer available why would I pay you more than 99 cents for the song or pay you at all when I can just as easily get it from a trusted source: Apple.

      And why would you charge less than 99 cents for it? It's a dollar. Most people aren't so scroogish about their money that they will try to get a dollar back. And most on-line money transfer places don't make it economical to sell something for a buck. The fees are too high. With PayPal you'd only end up with 66 cents on that dollar. And it's quite a hassle to mail you a dollar in which case I'm paying an additional 37 cents at least.

      Apple got it right. The technical restrictions and the low cost make it a waste of effort to try to resell to regain the cost of the product, much less make a profit. They quite literally made it impossible to be undersold.

      If songs ever stop being offered by Apple then one may have a business opportunity. But that would require buying numerous licenses of each song to make it worth it and require some foresight into what's going "out of print" that people will still want years from now in order to avoid wasting money on songs you'll never be able to sell once the market swings your way to check out what you have.

      Instead of fighting Apple in this worthless pursuit of pennies, you'd be better off forming an allience with indie bands and set up a business being the first time sellers of their music. There's a huge market for that.

      Ben
      • Re:Around...how? (Score:3, Interesting)

        by Rozinante ( 664527 )
        Let's see, you pay 99 cents for the song and now you're going to resell it. Unless it's no longer available why would I pay you more than 99 cents for the song or pay you at all when I can just as easily get it from a trusted source: Apple.

        Good point, but what about selling albums? In that case it gets big enough to be worthwhile.
      • Re:Around...how? (Score:4, Insightful)

        by Maserati ( 8679 ) on Tuesday September 09, 2003 @02:27AM (#6907543) Homepage Journal
        *sigh*

        The point is to see if the First Sale doctrine applies to digital media. It's a big question and it's worth being approached.

      • Re:Around...how? (Score:4, Interesting)

        by TheRaven64 ( 641858 ) on Tuesday September 09, 2003 @05:17AM (#6907995) Journal
        Okay, so let's imagine that I'm a Beatles fan. I buy all of their songs (that's over 250). At some later point in my life, I decide I don't really like them anymore. Or I have a cash-flow problem an want to liquidate the asset. I could probably get around $200, since second hand it is exactly the same as new. Unfortunately, I can't do this at the moment.

        Re-selling individual songs might not be cost effective, but selling collections is.

    • Apple comes out looking like they (a) understand copyright restrictions and took that into account already, and (b) still don't want to be the RIAA and crack down on this sort of thing.

      But this could be an opportuntiy to prove, once-and-for-all, to the RIAA and MPAA, that DRM can be used in a way that is acceptable to them.

      Assuming that Apple keeps a database of all the computers authorized for a given copy of a song, have all those computers relinquish control of the song, so the DB shows all blanks.
  • Not just selling (Score:5, Insightful)

    by Vyce ( 697152 ) on Monday September 08, 2003 @10:38PM (#6906451)
    They keep saying it's impractical to sell the songs...well, how about trading songs with other iTunes users? I'm sure there is some right somewhere where you can give stuff away that you bought a copy of. (Basically sell it for $0). So...the real question is...why can't i just forward my legally purchased songs to Jim Bob the same way i could hand him my physical CD.
    • Re:Not just selling (Score:5, Interesting)

      by Acidic_Diarrhea ( 641390 ) on Monday September 08, 2003 @10:42PM (#6906481) Homepage Journal
      It seems reasonable that you should be able to do this but if Apple were to facilitate this (I'm not sure you were suggesting such a trading feature be built into iTunes or not but it's an interesting subject), the problems become clear. If I were to trade my songs with you, there's no way Apple can check to make sure I haven't made an line-out type recording of the content and re-encoded it into mp3. Basically you need to have a way to ensure that when I trade away my digital goods, my digital goods are really gone. That's tough to do and that's why I think Apple would never consider adding this.
      • by Vyce ( 697152 ) on Monday September 08, 2003 @10:47PM (#6906518)
        Substitute "line-out type recording..." with "photocopy" and "digital goods" with "book" and you'll understand that the same argument applies to all media in general, digitial or not. Again, just because it's on a computer doesn't make it new or unique. VHS, DVD, CDs, Piano Rolls...doesn't keep people from shopping at Half-priced books, or Used CD stores.
        • by puppet10 ( 84610 ) on Monday September 08, 2003 @11:17PM (#6906683)
          I found that part of the article the most disturbing, the part where it was mentioned that the copyright office doesn't believe the first sale doctrine applies to digital works -- basically just because they are digital.

          I would really like to see the first sale doctrine reaffirmed for digital works, because it is an important principle to uphold and the copyright office apparently doesn't see it as such.
        • by chill ( 34294 ) on Monday September 08, 2003 @11:51PM (#6906856) Journal
          Substitute "line-out type recording..." with "photocopy" and "digital goods" with "book" and you'll understand that the same argument applies to all media in general, digitial or not. Again, just because it's on a computer doesn't make it new or unique. VHS, DVD, CDs, Piano Rolls...doesn't keep people from shopping at Half-priced books, or Used CD stores.

          Not quite true.

          Duplication of physical goods requires raw materials (paper & toner, or blank disks/tapes) and has an inherent cost in both time and money.

          Why don't people photocopy the latest best seller? Because of the cost inherent with the process.

          Further restraints aren't necessary in the analog world because the nature of the media is itself a restraint.

          In the digital world it is just bits. I can make 10,000 copies of a music file for a net 0 cost -- my cable modem is a flat rate and my PC can serve files in the background without interfering with what I am doing.

          What would 10,000 copies of a physical CD cost in duplication, time and distribution? How about the latest Harry Potter book?

          In the digital world, the media itself no longer acts as a restraint.

          Now, whether this is good or bad, enivitable or not is beside the point. There ARE differences between physical items and digital ones and pretending there aren't is an argument that won't fly.
          • Let's see here... (Score:3, Insightful)

            by Elladan ( 17598 )
            Hmm. Let's see here.

            I have, in my hand, a copy of a Harry Potter book.

            In my other hand, I have a digital camera. Watch, as I take a photo of page 52.

            Oh my, it appears the text is readable. Here, let me just share this out on Kazaa... (As a matter of fact, most popular books are shared right now)

            What was the difference again?

            Reality check here. Copyright applies to patterns of information. ALL patterns of information can be digitized and copied at (practically) zero cost.

            The real difference here
            • Re:Let's see here... (Score:4, Interesting)

              by chill ( 34294 ) on Tuesday September 09, 2003 @01:11AM (#6907266) Journal
              Hmm. Let's see here.

              I have, in my hand, a copy of a Harry Potter book.

              In my other hand, I have a digital camera. Watch, as I take a photo of page 52.

              Oh my, it appears the text is readable. Here, let me just share this out on Kazaa... (As a matter of fact, most popular books are shared right now)


              Right. Now do that 500 more times and exactly how many people are going to flip thru 500 JPEGs instead of spending $20? "Oh, shit. I didn't get pages 241-247 off of KaZaA!"

              The ones I've seen online aren't done like that. They are done by teams of people who each scan and OCR a chapter, then release it as PDF after correcting it by hand.

              I'm not disputing the traditional media companies are fighting tooth and nail to preserve their existing profit model. Not am I disputing that they will eventually lose -- it is like trying to hold back the tide.

              What I'm saying is that there is a distinct difference in both cost and mechanism for duplicating and distributing andlog and digital media. YOU were talking about digitizing -- converting analog to digital then distributing the digital.

              The new digital era really makes the publishers -- the middlemen -- mreo and more marginal. It becomes possible for the artist/author to distribute their work without the publisher.

              The main reason digital books haven't taken off more is because there is no decent digital display as good as a book. PDA screens are too small. PCs & PDAs are too fragile, too heavy and too expensive. Most people don't want to sit in front of a monitor to read a book. Once a decent device for this is created, the publishers are going to really start their death screams...
              • by fucksl4shd0t ( 630000 ) on Tuesday September 09, 2003 @05:59AM (#6908079) Homepage Journal

                The new digital era really makes the publishers -- the middlemen -- mreo and more marginal. It becomes possible for the artist/author to distribute their work without the publisher.

                First, I will grant you that it is a helluva lot easier to copy and distribute shit with computers over the internet. However,

                HARD DRIVE SPACE AIN'T FREE.

                It is cheap. However, I needed to spend $120 to get a 60GB hard drive (a year ago or so) to store my movies on my computer so that I could put the DVDs away from the kids. For music, hard drive space is really cheap. It's going about $1/GB last time I checked, and 1 GB will hold 204.8 5MB files (mp3s or oggs). That's about 20 albums worth of space, for $1. I'll bet that's close to what CDs cost wholesale, or on large print runs. You can buy blank CDRs at about $1/10, at Costco (probably other places, Costco isn't cheapest on computer stuff). Now I'm burning the .avi files off onto CDRs because I don't have enough room on the hard drive, and the kids have learned that if they play with the CDs, they will destroy the movies (lost two already like that).

                The main reason digital books haven't taken off more is because there is no decent digital display as good as a book. PDA screens are too small. PCs & PDAs are too fragile, too heavy and too expensive. Most people don't want to sit in front of a monitor to read a book. Once a decent device for this is created, the publishers are going to really start their death screams...

                I have to disagree with this. I think there are many contributing factors to digital books not taking off. One of them is that when you have a digital book, you expect to be able to read it on ay computer you own. This is not so, however. You give the publisher a unique identifier and they use it to generate a key to unlock your copy, and that's the end of the transaction. Also, digital book formats are not standardized, there are several. I've had 3 separate programs on my Clie just to read books. Buying an eBook is not a simple process. If they really want to make money, they'd make it as simple as buying a book. Give someone $5, take home a book, read it anywhere. But software developers have to all agree on a file format that the publishers like, and support it. How about plain text? :)

                Finally, Baen is one publisher that is doing its job to lead the publishing industry into the next generation, and I fully intend to purchase more books from them, as soon as I've read the free library to filter out the good authors from the rest. I look forward to other publishers following Baen's example, or dying. HOpefully Del Rey won't die, last I checked they were still one of the best sci-fi publishers.

      • I think what they're worried about is large-scale lending.

        Think about it this way. Most people own a lot of music that they're not listening to right now. Imagine if they lent it out to people who wanted it, with the ability to claim it back if they decided to listen to it. People could buy a lot less music, and still listen to just as much.

        Now scale this to the internet and automate all the searching, and hardly anyone will buy music again (some people will have to for each new album, and real fans wi

  • Not a Market?? (Score:3, Insightful)

    by Gr33nNight ( 679837 ) on Monday September 08, 2003 @10:38PM (#6906453)
    In stores which buy my used cds, they offer me a fraction of the price for the cd. If I payed $12, then they offer me $4. Why cant I do the same with the music I buy from Apple? Sell 10 tunes for $5? Especially if they sucked.
    • Re:Not a Market?? (Score:3, Insightful)

      by TellarHK ( 159748 )
      That's one of the key features of iTunes music store, you don't necessarily have to buy -anything- that sucks. If you did, well... you had a chance to sample it.
      • Re:Not a Market?? (Score:4, Insightful)

        by Gr33nNight ( 679837 ) on Monday September 08, 2003 @10:52PM (#6906542)
        Yes, but my taste in music changes. Years ago I purchased a Cranberrys cd. I loved it. Now I havent listened to it in a long long time. If I could sell it for $5, I would. Same thing with online music.
      • That's one of the key features of iTunes music store, you don't necessarily have to buy -anything- that sucks. If you did, well... you had a chance to sample it.

        Giving a listener a 30 second segemnt of a 6 minute long song is like offering an elephant for sale to a blind man, but handing him the trunk for evaluation. The blind man isn't going to be very happy when he gets his new python home only to find out that it is somewhat different than he expected.
    • Well there is no reason for apple to buy them back, since iTMS can already make infinite copies of each song there is no reason for them to buy back your copy. Now if it was easy to change ownership of the files, then a 3rd party might be interested in doing it.
      • Thats the whole point :)

        Some smart soul should setup a website with the sole purpose of buying and selling used legit music files.

        Maybe I should send that into the appropiate office, so none of you bastards steal it :)
  • Clever! (Score:3, Insightful)

    by Alex Reynolds ( 102024 ) * on Monday September 08, 2003 @10:39PM (#6906461) Homepage
    Notice how cleverly Apple sneaks in how it will not assist in transferring the song's ownership.

    Thus, it neatly avoids entangling itself in the 'first sale' right issue by making it entirely an issue of 'practicality'; without offering a mechanism to transfer the Apple ID, Apple locks you into ownership.

    -Alex
    • Re:Clever! (Score:2, Insightful)

      by agoos ( 686581 )
      I think this is pretty well thought out. With all the garbage that's happening with the RIAA, and all the slippery slope questions like "what about selling for 0$", it becomes a legal time bomb. Apple decides to come out as the medium-good guy without doing any real work. Very well planned. They must be good at chess.
    • Re:Clever! (Score:5, Insightful)

      by Monkey-Man2000 ( 603495 ) on Monday September 08, 2003 @10:49PM (#6906523)
      This seems to be exactly what the Ebay guy wanted to challenge. Is Apple not violating a buyer's right to sell their property under the First Sale Doctrine if they prevent the user (maybe through the DMCA) from transferring it? I would say they are. Obviously, this challenge could also be applied to alternative forms of legitimate digital media and clearly shows the extent to how much the DMCA tramples consumer rights.
      • one has the right to reverse engineer in order to exercise his right to the material.

        Therefore, while you may not reverse engineer Apple's format for the sake of generating high-quality mp3 rips, you may reverse engineer it for the purpose of selling your music or playing it on a better OS.

        Apple is not as moronic as the RIAA, MPAA, and SCO. They won't jump to piss off customers and/or die in a blaze of bitching glory. That said, they are still as business that will break the law or piss off customer
    • Re:Clever! (Score:5, Interesting)

      by mindstrm ( 20013 ) on Monday September 08, 2003 @10:50PM (#6906530)
      And they are entirely right.

      Just as a bookseller in no way has to help you sell the book when you are done with it.

      How the song you bought would be delivered, and waht mechanisms apple provided for you to do things with it were CLEARLY spelled out by Apple beforehand, as this is a logical question to anyone who wants to download stuff.

      Apple is entirely right.. they are not getting in the middle of it.. why should they? They were clear about what they offered, and what it cost.. and you took it.
      • Re:Clever! (Score:3, Insightful)

        by abe ferlman ( 205607 )

        Apple is entirely right.. they are not getting in the middle of it.. why should they? They were clear about what they offered, and what it cost.. and you took it.

        Thank god you didn't write US contract law. Not all mutually consensual agreements are legal.

        For instance, to take an extreme example, even if Apple clearly states that your firstborn child will be a slave in their iPod factory, and even if you then agree to those terms, the terms are illegal. I'm sure you've seen unenforceable EULA's and emp
    • Notice how cleverly Apple sneaks...

      It seems you and others here have cast Apple in the role of RIAA puppet. A company that desperately wants to kill your fun and prevent you from doing what you want with what you bought. I don't believe that at all. I believe Apple thought about making illegal copying and distribution difficult, and probably not at all about reselling. They probably don't care, beyond the fact that it's impractical to a degree that probably not many people will bother, thus making it
  • by civilengineer ( 669209 ) on Monday September 08, 2003 @10:40PM (#6906466) Homepage Journal
    Economically, I don't believe there is going to be much of a market for resold music...We just don't see it as that much of an issue

    Wrong! Many many people will buy mp3s if its only 10 cents an mp3 and they would not mind a "used copy". Someone reselling can put the price so low if he has rights to the song after he is done listening to it.
    • by Acidic_Diarrhea ( 641390 ) on Monday September 08, 2003 @10:46PM (#6906509) Homepage Journal
      Ultimately, what I would like to see is the free distribution of music files through the Internet. The idea of a used copy is silly (I'm sure you know that but the RIAA probably wouldn't get it) and the only cost at that point is the bandwidth required to share files. I would like to see the whole business model that currently exists go the way of the dodo. The government funds the arts. If that were expanded, people could have music for free (by paying taxes) and artists could receive money. Artists can also receive money by giving concerts. I've had enough of people in suits getting money because some guy with long hair who plays a mean guitar is locked into a death grip with the RIAA.
      • And I think Apple and others know this... ultimately, it will be all about service... not "songs".
        You will pay someone because they provide you the music you want, when you want.. and that is that. It will be so convenient to let htem do this, you won't bother hoarding a collection.

        Or something.

        Apple is being quite clear.. they got into this to sell some tunes online.. and it worked, they made some money, and paid for the cost of rolling out ITMS. If it goes under, it's not like they'll end up a billion
        • I disagree. Apple has always implied the difference between their service and others is that you are *buying* music from them as opposed to licensing/renting it from a service. Every other digital music distribution "treats their customers like criminals". I think that Apple (and a lot of Slashdot posters) feel that when you buy a digital good you own it in the same way you own a physical good. Hence the interesting question of if you are allowed to resell that digital good.
  • by blogan ( 84463 ) on Monday September 08, 2003 @10:41PM (#6906473)
    Apple says it's impractical because a song is $.99. However, what happens in a few years when someone has 100 songs that they no longer listen too. Wouldn't it be practical to sell that lot of 100 songs for $50?
    • You could just add some functionality to some p2p network to do some kind of micropayments, be it paypal or beenz, I don't give a damn, it could be fairly trivially done.

      I think Apple has a right to charge a small service fee for updating your rights. If it's a matter of a key sent to the client, I think it's reasonable to require them to charge no more than ten cents to somehow retire your old key and issue a new one.

  • Translation (Score:5, Insightful)

    by DocLabyrinth ( 700915 ) on Monday September 08, 2003 @10:41PM (#6906479) Homepage
    So basically Apple has said that it may or may not be legal to resell a song, but it would be technically difficult to do so, and it only cost 99 cents in the first place so why would you want to? Thanks for not answering the question! Maybe I do want to resell a song. Maybe I want to sell my entire iTunes music collection. Maybe I'm clever enough to overcome the technical difficulties. Would it be legal or wouldn't it? And if Apple established that it was, wouldn't I feel better about buying from the iTunes music store?
    • Re:Translation (Score:5, Insightful)

      by BoneFlower ( 107640 ) <anniethebruce@ g m a i l . c om> on Monday September 08, 2003 @10:46PM (#6906506) Journal
      They did this for a simple reason. Should resale of iTunes songs hurt their business, they can crack down without appearing to be hypocrites. "after further research it appears to be illegal".

      They aren't giving an absolutely firm answer to make it easier to take whatever position helps them most when it does become an issue.

      • Should resale of iTunes songs hurt their business, they can crack down without appearing to be hypocrites. "after further research it appears to be illegal".

        Either that, or their response means "This sounds legal and acceptable to us, but we aren't going to come right out and say that, because we're afraid later that Universal will decide they don't think it should be legal and sue us for explitly and publicly giving consumers permission to exercise their right of first sale."

        Or it means "I, Peter Lowe,
    • Would it be legal or wouldn't it? And if Apple established that it was, wouldn't I feel better about buying from the iTunes music store?

      It's not Apple's job to tell you whether something is legal; that's for the courts to do. Apple was compelled only to explain why they objected to a particular auction.

      That said, the First Sale Doctrine doesn't apply to digital goods without some thought. It's founded on the notion that selling something in its entirety means you no longer own it; this property is not

  • If in doubt... (Score:4, Insightful)

    by adrianbaugh ( 696007 ) on Monday September 08, 2003 @10:42PM (#6906485) Homepage Journal
    Deny everything. Apple has put their fingers in their ears and are sitting in the corner singing "la la la I can't hear you". Technically they are probably right, this is not very practical - but the legal validity of such a sale still needs clarifying as it has ramifications for other applications of copyright law to digital (by which the lawyers seem to mean "downloaded"[0]) content.
    [0] They don't (yet) seem to claim this legal dilemma would apply if the music was on a CD, only if it's downloaded... This, to me, seems nuts - why does the medium in which you obtained the content make a difference?
  • First of all the whole idea of selling songs on the digital media is bad atleast until all the DMCA act and all others like it get really tested and amended to remove some that silliness that they have incorporated. Second like any other online sale digital music should also be allowed to be sold just like any other piece of junk music we buy. Until them paying a $ for each crappy song is still too much. besides the artists get few cents. Scew RIAA and the DMCA . Boycott CDS for a while which would force th
  • by Oculus Habent ( 562837 ) * <oculus.habent@gm ... Nom minus author> on Monday September 08, 2003 @10:45PM (#6906502) Journal
    Technical issues could be overcome with an addition to the Apple Music Store authorization system that let you give your song to someone else, deauthorizing you in the process. No major technical difficulties there. The real problem comes in verification that you have not made copies for yourself. If you have, then the "re-sale" is simply a fraud. The only way they could do this is have every computer that is authorized on the account report back whenever the song is burnt to a musics CD - it would be worthless as a data file (unless you manually drop it on your iPod...), only allowing you to sell songs you have never duplicated. However, I don't think Apple wants to keep track of everyone's CD burning, and people are just as unlikely to be interested in the prospect.

    Of couse, you could get around this by using a program that grabs the audio stream during playback and acheive the same end result.

    I understand Apple's position. Even if it isn't the greatest solution, they have stated that they believe in the "first sale" right, even though it isn't practical to implement. Their stance can be noted when the time comes that support for those rights is needed.
    • by Kjella ( 173770 ) on Monday September 08, 2003 @11:16PM (#6906676) Homepage
      The real problem comes in verification that you have not made copies for yourself. If you have, then the "re-sale" is simply a fraud.

      The obvious question then being, why should you require verification? If I've purchased a game, ripped to ISOs and resell it's illegal. If I photocopy a book before selling it it's illegal. If I borrow a CD at the library and copy it it's illegal.

      The system doesn't have to be perfect. Just deauthorize any song that is sold, and make it synch it to other devices when possible, like when using iTunes to synch music collection. And let those that want to break the copyright to so, they already can in lots of other ways.

      Even if you knew it was burned to a CD - what prevents someone from taking that CD to another machine, and make a copy of the copy? Whoops. It's simply not possible to verify that only X copies exist, no matter what kind of uber-DRM you add.

      Kjella
    • Is it illegal for me to sell a CD if I've made a backup copy? Maybe, maybe not, but that possibility doesn't mean that RIAA member companies have to monitor such backups in case I try to sell a CD used at a later date. I could as easily (more easily, really) connect my CD player to some recording device--my computer, say--and make a copy without any chance of detection as use a program that intercepts my computer's audio signal on its way to the line-out port. I could photocopy a book, keep the copy and sel
  • by dbc001 ( 541033 ) on Monday September 08, 2003 @10:46PM (#6906511)
    They seem to be handling this pretty responsibly. Most companies (and people as well) will go on the attack when this sort of thing happens. The MMORPG companies have been particularly mean about this sort of stuff when they probably could have done things in a much more responsible way. I'm really not a fan of Apple, but it's nice to see that somebody keeps doing things right when everyone else seems to be sueing, legislating, lying, bribing, bombing, terrorizing, and so on.

    -dbc
  • Archives (Score:4, Insightful)

    by danila ( 69889 ) on Monday September 08, 2003 @10:51PM (#6906535) Homepage
    Since no music can ever become out of print or rare at iTunes, that removes another incentive to buy "used" songs. People would have to sell them for less than 0.99 to make others interested and to compensate them the complexity of buying the song on eBay instead of the convenience of iTunes. That would make sense with large collections and, I believe that once this will really become important for iTunes customers, Apple will do something. After all, lack of a resell market for digital songs would somewhat limit their value and make people hesitant to spend money on them.

    But in any case, iTunes is a doomed venture. Unrestricted MP3s/OGGs are the way to go. Eventually it will become obvious, although Apple might get a fair profit alongway.
  • Estate Sales (Score:5, Interesting)

    by Anonymous Coward on Monday September 08, 2003 @10:52PM (#6906538)
    Serious collectors frequent estate sales. They're good places to find collections which are of no interest to the survivors of the deceased. Books and music are often overlooked.

    The Apple spokesman dismissed the resale potential of a 99 cent download. He overlooked the value of a 1000 song collection, where transfering the license keys would be well worth the effort.
  • Okay, bear with me for this one. iTunes does allow me to make as many copies as I want for personal use right? I should be able to do that with music I have bought: play it in the car, or any place else. I may be required to use a special player, but that's still fine.

    So if I'm allowed to do that, I can hand over the portable copy that I was allowed to make by law (along with the player) to the buyer, as long as I destroy all other copies I made.

    I don't see the technical problems behind selling a song,

  • is a feature, not a bug. It adds value to anything to which it is attached. People find more value in something which has all the legal attributes of physical media.

    This includes digital media.

    So its not technically feasible? People may have said that about DRM a few years ago. If its not technically feasible at the moment get your smart guys together, get the thinking caps on, and make it so.

    Heck, if you want, charge 5 or 10 cents per song for the added feature.

  • In Other Words (Score:3, Insightful)

    by jdc180 ( 125863 ) on Monday September 08, 2003 @10:58PM (#6906573)
    It's hard and impractical to resell individual songs that we never envisioned needing the extra clause in the TOS. Please mull over how to transfer your songs while we add the clause.
    Thank you,
    Apple
  • If apple was smart (Score:5, Interesting)

    by iomud ( 241310 ) on Monday September 08, 2003 @11:00PM (#6906584) Homepage Journal
    They would create an ebay like system directly in iTunes that would allow me to sell my music to other people. Both music I created and music I've purchased from itms. They provide the audience, I provide the bandwidth and content, Apple would get a cut which would go towards paying the artists and record label if one were involved. The rest goes to me, and lets say for each sale of an individual song the overhead of label costs would decrease for each time the song is sold. Obviously the centralized listing of sellers would have to be seperate from itms, but I think it could work. Think napster with a twist.
    • The problem (at least what Apple might see as a problem), is that eventually almost all of the songs that people want will be available through resale, meaning that Apple will get a smaller cut than if they were purchased "new." This means smaller and smaller profits for Apple, and I doubt they'd go for that.
    • They would create an ebay like system directly in iTunes that would allow me to sell my music to other people.

      Creating such a marketplace and policing it would take considerable time and effort. Just figuring out how to track how many times a song had been sold (and making that count hack-resistant) would be a big task. The margins would be lower than the iTunes Music Store, and there would be all kinds of litigation just waiting to be sprung on their ass.

      Plus, there's already an 800-lb gorilla in the

  • by inkswamp ( 233692 ) on Monday September 08, 2003 @11:01PM (#6906591)
    There's a real problem here. The same arguments that have been used in the past in favor of a buyer's right to resell the CD (i.e., that you own the media and can legally resell it) probably doesn't apply; in fact, that argument, as I've heard it, works against this. You never own the rights to the music you pay for, but rather the medium upon which it has been written. This explains why you are allowed to resell a CD. By law (and I'm not expert--this is what I understand) you own the physical media upon which the material (the rights to which you don't own) is placed. This allows you to resell the CD. In the case of downloads, there is no physical media per se. The situation has changed significantly. Unfortunately, as I understand the law in this matter, one cannot resell a downnload unless the laws are rewritten to include bits and bytes as physical media a la CDs, tapes and records. I kinda doubt that's going to happen. And frankly, I'm not sure it should.

  • by ryanw ( 131814 ) on Monday September 08, 2003 @11:01PM (#6906592)
    Lowe also said that with songs selling for 99 cents apiece, reselling music could be financially impractical.
    Well, of course if you were selling them for $0.99 a song it wouldn't make sense. But what if you had an entire ipod of 40gigs of purchased music and you're willing to sell the whole thing for $1000.00 with a true value of up around $8,500.00.

    (40gigs / 5mb a song * $.99 a song) + $500.00 ipod = ~$8,500.00
  • It is interesting that they didn't flat-out reject the idea

    No. No, it isn't interesting. What's interesting is that press-releases like this, manage to say absolutely nothing, and it's just accepted that press releases are pointless these days...

    If you aren't going to say anything, don't say anything. Don't avoid the issue with major abiguities, and pointless jabber.
  • I'm just going to sit here with a cold one and let all the armchair lawyers hash it out. Game on. -M
  • by mveloso ( 325617 ) on Monday September 08, 2003 @11:07PM (#6906623)
    One problem with geeks is they read, but don't understand.

    What Apple is saying is "we don't want to get into that."

    The reason Apple is saying that should be obvious to anyone who bothers to think about it. For those of you that don't, the reason is this:

    They want to sell you music.

    In the legal system, there are fictions that are there so things can get done.

    In technical terms, there are hacks in place that everyone knows are skanky, but nobody wants to look to closely at them because they make stuff work. The technical equivalents are things like DNS, SMTP, etc. They suck, but what can you do?

    In the same vein, Apple wants to keep selling music. It does this by playing both sides of the fence - negotiating licenses with publishers, and allowing loose licensing by the users.

    As long as nobody looks too closely, well, everything's OK.

    Users can do whatever the hell they want, but Apple has to play a game, and play it well.
  • by Samurai Cat! ( 15315 ) on Monday September 08, 2003 @11:18PM (#6906686) Homepage
    "Economically, I don't believe there is going to be much of a market for resold music...We just don't see it as that much of an issue," he said.

    Gee, tell that to the used CD stores I've bought dozens and dozens of CDs from over the years.
  • by joel8x ( 324102 ) on Monday September 08, 2003 @11:18PM (#6906691) Homepage
    What if I purchase a song and decide that I don't want it anymore. Can I give it away?
  • Fresh air (Score:3, Insightful)

    by Captain Splendid ( 673276 ) <capsplendid@@@gmail...com> on Monday September 08, 2003 @11:31PM (#6906760) Homepage Journal
    It's very refreshing to see a company actually talking about the issue, instead of suing over it.
  • by amichalo ( 132545 ) on Monday September 08, 2003 @11:32PM (#6906764)
    for $0.99 you get not only a product, an encoded AAC audio file with an album cover graphic and meta data describing the song, but you also are buying a service.

    That service is the key. (pardon the pun)

    Apple is providing the means to manage the unlocking of the file - presumably for as long as you own the AAC file. But Apple's service is limited. Their service does not include the management of your license. Their service does not include a utility to transfer ownership or will AACs to your heirs. One much booed but accepted limitation is that it doesn't include the ability to re-download the songs you purchased, so you have to archive them yourself.

    There are lots of alternatives out there. Apple has bundeled the product and service they feel is most compelling to the marketplace. 10,000,000 songs have been purchased so some people are compelled. Yet there will always be the OGG zelot or the eBay seller who really needs to push the limits of the license. To both groups as it turns out, I recommend they but the CD, rip it to OGG, and when they are done, delete the OGGs and eBay the CD for half what you paid. You might even come out only paying $0.99 a song that way.

    As for me, I'll stick with iTMS which gives me more than I could ask for, and all they ask is $0.99 (plus tax).
  • by shunnicutt ( 561059 ) on Monday September 08, 2003 @11:37PM (#6906793)
    I can sympathize with Apple's position here; the effort to setup some kind of (ideally) automatic system to transfer the digital rights and still prevent piracy isn't worth it to them. However, when you're talking about multiple files, it quickly becomes relevant to the owner who wants to sell.

    Issues like this is why I still buy a CD whenever the impulse strikes. I just don't buy as many as I used to; I'm much choosier about who I'm supporting.

    You see, as far I as I'm concerned, CD's are future-proof. I can rip them into whatever format I want to use. Right now I'm using AAC in iTunes, but that could change. I may want to sell the music, or let my partner listen to it on his office computer. Digital files are definitely the future -- who can doubt it -- but for right now, the CD (or other physical media) is the safest investment.
  • by mowph ( 642278 ) on Monday September 08, 2003 @11:39PM (#6906802)

    Assuming that resale of online music becomes legalized, practicalized, and widespread, this could mean the end, or at least reasonable limits to the mass-consumption pop crap that floods the music market.

    With resale available at the press of a button, after the initial catchiness has worn off and the latest Britney song has become just as sickening as the rest, the User A can release his copy for a resale at the going market rate. This rate would depend on the original track price, number of copies for sale and the number of potential buyers.

    User B, who hasn't become sick of the song yet, can pick up A's used copy instead of buying another new copy. This curbs the sale of a song to the number of unique users actually interested in the song at one time.

    Instead of releasing lowest-common-denominator slop to try to appeal to all people at once, recording artists will be forced to make solid works aimed at specific listeners, who will want to hold onto it for a long time. Or at least it will even the field between those who do and the slop-shovellers at Sony.

    It could even start a futures market -- people buying thousands of copies of a song at a cheap point, hoping that it will regain popularity at some future point. This could redefine the term "entertainment industry" as we know it.

    Of course, this is all based on the above (false) assumption that companies have their consumer's interests at heart. Since they want to sell as many songs at as high of a price as possible, Apple will design iTunes to make sure that this never becomes possible.

  • hypocrisy? (Score:5, Insightful)

    by quacking duck ( 607555 ) on Tuesday September 09, 2003 @12:02AM (#6906909)
    For everyone who thinks they should be allowed, nay, be provided a mechanism to re-sell, lend or otherwise transfer ownership of music purchased from the iTMS because you can do that with old CDs and books... that's hypocritical.

    We accuse the RIAA, MPAA, and other big special interest groups of not adapting to the internet and clinging to outdated paradigms. Aren't you doing the exact same thing, applying a paradigm that easily applies to physical property but can't be applied (or is technically unfeasible) in the digitial realm?

  • by Anonymous Coward on Tuesday September 09, 2003 @12:06AM (#6906939)
    The article has pretty much highlighted that Apple has a flat head. Nothing more, nothing less. I think it's pretty fair for them to say that "It may be legal (or illegal), but it's pretty darn impractical!" Sure it would be much nicer if there was an easy way to re-sell the music files, and I do believe that it's legal, provided you follow a few common-sense steps such as not retaining a copy after the sale.

    A lot of slashdotters are probably gonna complain that Apple needs to create a method for transfering ownership, and all I can say is, no they don't. I have every right to sell my DVD collection to a friend in England. (I live in Japan.) He has every right to go out and buy a DVD player that can play them, or modify his own, since it's a different region DVD. Yeah, it's a pain in the ass and almost evil to have region coding, but that has nothing to do with the copyright of the DVD in question.

    The only difference with the DVD and iTunes file is that with DVD's, the "impracticality" was put there on purpose, which in my mind means the organization(s) responsible for the region coding are a bunch of assholes. As for the iTunes file, the copy protection method was put there so that Apple could manage to
    1) strike a deal with the labels,
    3) deliver what the consumer wants (downloadable legal music), and
    2) still manage to maximize consumer rights. (CD-R burning.)
    (And yes, 4: profit!, but there's nothing inherently wrong with that.)

    I'd say Apple did a damn good job at it, even if it's not perfect. Truth is, the reason it isn't perfect is more or less the record label/RIAA's fault and not Apple's. If you don't like it, don't buy it.

    I'm speculating a lot here, but I get this feeling that if you made a CD from the iTunes file, and sold the iTunes file AND the CD together, Apple could care less. Apple is merely providing a SERVICE in exchange for a small percentage of the sales. It may be legal grey zone, but it isn't damaging Apple's sales (as long as you're honest and delete your own copy after sale). Hell, it probably isn't even damaging the RIAA member's that much either, and is within the owner's rights. (And if it's within the owner's right, then it isn't even "damage" any longer.) But for some reason they make a fuss over it.

    So what we have here is a very odd scene, really. "Holy shit, a large corporation using common sense! It must be a conspiracy!!" And it just as well may be, except it's a conspiracy that is backfiring on the RIAA and in return making Apple look pretty slick.

    C'mon guys/gals, it's just common sense.
  • good! (Score:3, Insightful)

    by bussdriver ( 620565 ) on Tuesday September 09, 2003 @12:53AM (#6907185)
    Again apple shows other corps how to play.
    Business and ethics can mix; but don't in modern times. Its nice to see some companies still doing things right. All these corporate terrorist lawyers are messing up the world ("civilally.")

    Where did the old saying go?

    "Its not wether you win or lose, its how you play the game."

    Apple is 1 of a few who remember this. This is just another example of Job's influence; and also why apple will never win.
  • This is DeCSS II (Score:3, Interesting)

    by JoeShmoe ( 90109 ) <askjoeshmoe@hotmail.com> on Tuesday September 09, 2003 @12:55AM (#6907196)
    Think about it. If there existed a tool that could remove copy protection from an AAC file, what would be the result?

    1) Some would argue that it is a useful tool that facilitates the legal owner of a digital work in their right to re-sell the work. Much like DeCSS was a tool that facilitates a legal owner of a digital work in their right to access it.

    2) Others would argue it's an illegal violation of the DMCA that enables piracy by allowing someone who may be the legal owner of a digital work to then distribute copies of that work. Much like DeCSS was a tool that allowed a legal owner of a digital work to distribute copies of it.

    The big question: Will the result be different when we are talking about music instead of movies? Would people see the logic in being able to have full access to their digital library?

    When iTunes Music Store was announced, it would have been a complete flop except for one thing: Apple had successfully negotiated what seemed like very generous DRM terms for their customers. Compared to the other options, most people were happy to plunk down their dollars and reward Apple. But no one bothered to ask what happens when someone wants out and looks to offload their collection.

    If Apple were to continue its example, it would provide users with a mechanism to transfer songs. If Apple does not or cannot provide this...then really it's terms are not as generous as they advertise. There might be a compelling class-action lawsuit in this. Apple never said they prohibit the transfer, but they are the only ones capable of performing a transfer without encouraging their customers to use DeCSS-type tools that violate the law.

    What would happen if everyone who purchased music on iTMS told their credit card companies to dispute the charge because they didn't actually get the legal copy they expected? Maybe someone should try it as a test case like this resale.

    - JoeShmoe
    .
  • Is that the eBay guy is sill $0.50 ahead buying a $0.99 song that he doesn't like and not being able to resell it, rather than buying a $3 single he doesn't like and selling it back to a record shop for $1.50. Easy and practical resale is one of the advantages you get for shelling out the extra cash for a physical copy (and of course there are a lot of disadvantages to physical copies as well).
  • by ZackSchil ( 560462 ) on Tuesday September 09, 2003 @02:36AM (#6907572)
    The way iTunes DRM works makes things much simpler and less controlling but also takes away the user's ability to transfer songs. When you download a song, Apple attaches a DRM "lock" to the actual music file. Then, when you register your computer with Apple they give you the "key." That way, you only need to be online to get your computer the key. Other than that, iTunes never phones home about any use of the songs. In order to transfer a song, Apple would need to make the original purchase invalid and create a new one. There is no way to invalidate just one purchase under the system. You'd have to give the buyer your whole account. Or yourself a whole new account. Even then, you could easily keep all your old (and sold!) music on another machine that hasn't synced to the internet. The beauty of Apple's system is the freedom it gives the user, like true ownership. No cage comes down around the music if you have no network connection.

    On the bright side, let's say you want to unload your whole collection of music. You could literally SELL your whole account with all your music after removing your credit info. Now that seems like a realistic sale. Selling just one song 99 makes little sense. Selling hundreds to someone who likes your taste just might work very well. The buyer of your account would know if you were still holding on to an authorization key because iTunes would tell them so.
  • Break through! (Score:5, Insightful)

    by Hard_Code ( 49548 ) on Tuesday September 09, 2003 @08:41AM (#6908541)
    "Economically, I don't believe there is going to be much of a market for resold music...We just don't see it as that much of an issue," he said.


    This is the most important thing that has every been said by a company on this issue. It basically admits that the way to fight piracy is to create a market environment where there is little incentive for piracy. And how do we do that kids? By lowering the freaking prices and making the product more accessible to the consumer. Thank you Apple.
  • by IBitOBear ( 410965 ) on Tuesday September 09, 2003 @11:21PM (#6917701) Homepage Journal
    So my roommate, who works with some high-end audio software that runs on a Mac discovered something interesting.

    If you open an iTune with a particular piece of editing software on the Mac, and click save-as, no more DRM.

    I would tell you the name of the product, but I don't remember it (not being an audio nor Mac geek myself). It costs in the $800 range but you *can* find it fairly easily in a semi-pbulic lab at, say, a school has a good audio engineering program.

    And no, the arangement doesn't require that you buy the iTune for the computer running the software.

    (I really wish I could say that I was withholding the name of the program because of the DMCA, but I am just a big dummy and I cant remember.)

    Then again, said "big" corporation making and marketing the "cimcumvention tool" which is also "one of the big names in Digital Audio Production" would make for interesting conflict of interests.

    Do you think Lars be happy to know he is using the same software to master his music as the random college hippies are using to steal it?

    And no, my roommate is not using this discovery to violate anybodies copyrights, he just mentioned that he'd found the flaw by accident and that it was funny...

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