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Realnetworks Vs. Apple

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Notre Dame of Marbel University College of Engineering and Technology Computer Studies Department PROFESSIONAL ETHICS Case Studies Hajah T. Sueno, MSIT Chapter 6: Intellectual Property RealNetworks vs. Apple The Real Player Music Store from RealNetworks is a music purchase program that allows users to access more than 35,000 songs. Users can find and buy individual music tracks or albums and access account information using the RealPlayer software. Because users own the music they buy, they can record or transfer it to musicplaying devices without extra fees or changes. The purchased music is stored in the realAudio (.rax) format. Hundreds of millions of tracks have been downloaded by RealPlayer users around the world. Many music-playing devices include proprietary copy-protection schemes that limit what music can be played on them, depending on where the music was purchased. Apple computer, for example, uses its FairPlay copyprotection technology for formatting music played on its highly successful iPod. Because Apple refuses to license FairPlay, Apple’s iTunes service ws the sole source of music for the iPod. In a move to increase the number of devices that can play music from its Internal store, RealNetworks developed digital rights-translation software called Harmony. The software allows consumers to play songs downloaded from the RealPlayer Music Store on dozens of music devices, including those from Apple, Creative, iRiver, and Rio. Many consumers welcomed the arrival of Harmony, believing they (not music device manufacturers) should choose what music they hear. Apple issued a highly critical statement of RealNetworks, accusing it of using a hacker’s tactics and ethics to break into the iPod. Apple also said it was investigating the legality of the actions, including violation of the Digital Millennium Copyright Act (DMCA). Apple further pointed out that because iPod software is updated from time to time, the Harmony technology would probably not continue to work. According to a RealNetworks press release, “Harmony follows in well-established tradition of fully legal, independently developed paths to achieve compatibility. There is ample and clear precedent for this activity—fir instance, the first IBM-compatible PCs from Compaq. Harmony’s method of locking content from Real’s music store is compatible with the iPod, Windows Media DRM devices, and Helix DRM devices. Harmony technology does not remove or disable any digital rights management system. Apple has suggested that new laws such as the DMCA are relevant to this dispute. In fact, the DMCA is not designed to prevent the creation the creation of new methods of locking content and explicitly allows the creation of interoperable software.” Several questions about the development of Harmony are crucial to understanding the potential legal implications: 1 Did the RealNetworks break the copy protection used by iTunes and violate the DMCA? 2 If so, does the Harmony software fall under exceptions of the DMCA that allow for interoperability? 3 Did the RealNetworks create Harmony by reverse engineering the original iTunes software? Under the DMCA, you must be very careful about reverse engineering to try to overcome mechanisms placed in the software to prevent disclosure. Questions: 1. Research the Internet on the status of the RealNetworks vs. Apple dispute. Write a one-page summary of your findings. 2. Under what conditions might a court find that RealNetworks did not violate the DMCA and can continue to sell and distribute its Harmony products?. 3. Do you think the DMCA should be changed? If so, how should it be changed? If not, why not? George Reynolds, Ethics in Information Technology, Thomson Course Technology, 2007 Page 1