NYTimes.com Article: Apple Attacks RealNetworks Plan to Sell Songs for iPod

[David Farber <dave () farber net>]

Apple Attacks RealNetworks Plan to Sell Songs for iPod

July 30, 2004
 By LAURIE J. FLYNN





SAN FRANCISCO, July 29 - Apple Computer sharply criticized
RealNetworks, the maker of media-playing software, on
Thursday, saying it was investigating the legal
implications of RealNetworks's decision to sell songs in
Apple's music format. It accused RealNetworks of adopting
"the tactics and ethics of a hacker to break into the
iPod."

Apple issued its angry statement just four days after
RealNetworks started giving away software called Harmony
that lets people download songs from its online music store
and play them on Apple's popular iPod portable music
players, as well as players using Windows Media Player and
the Helix format from RealNetworks.

RealNetworks quickly shot back with its own strongly worded
response, vowing to continue letting consumers play songs
bought on its music service on any of the 70 music players
on the market, including Apple's iPod.

"Consumers, and not Apple, should be the ones choosing what
music goes on their iPod," executives of Real Networks said
in a statement. "Harmony follows in a well-established
tradition of fully legal, independently developed paths to
achieve compatibility."

The statement added, "There is ample and clear precedent
for this activity, for instance, the first
I.B.M.-compatible PC's from Compaq.''

While RealNetworks is the first company besides Apple to
sell songs in the protected iPod format, other companies
sell them in the MP3 format, which the player can also use.


Richard Doherty, a computer industry consultant and
president of Envisioneering, said the dispute between Apple
and RealNetworks intensified the debate about control over
the sale and downloading of music. "Both companies seem
resolute in their positions," Mr. Doherty said.

Apple said it was investigating whether RealNetworks's move
violated the Digital Millennium Copyright Act or other
intellectual property laws. RealNetworks responded that the
copyright act, passed in 1998 to address the issues
surrounding the distribution of digital content, explicitly
permits the development of software that can share data
with programs from other companies.

Apple also warned that Harmony might not work with future
versions of the iPod software.

Robert Glaser, the chief executive of RealNetworks, has
long been a critic of what he sees as Apple's proprietary
strategy with the iPod, asserting that Apple was running
the risk of following the same path it took in its
development of its personal computer. Many in the
technology industries have maintained that Apple's refusal
to license its Macintosh operating system to other
developers in the late 1980's contributed to the
establishment of Microsoft's Windows monopoly.

For his part, Mr. Glaser has tried to act as something of a
neutral party in the competition among different hardware
standards. Mr. Glaser said last week that he had sent an
e-mail message to Steven P. Jobs, chief executive of Apple,
in April, asking him to license Apple's music format to
RealNetworks, but, he said, Mr. Jobs did not reply.

Mr. Glaser, along with many industry analysts, asserts that
RealNetworks's software could ultimately lead to more sales
of iPods.

RealNetworks showed no sign yesterday of backing down,
despite Apple's legal threat.

"We remain fully committed to Harmony and to giving
millions of consumers who own portable music devices,
including the Apple iPod, choice and compatibility,"
RealNetworks said.

http://www.nytimes.com/2004/07/30/technology/30real.html? 
ex=1092182050&ei=1&en=369514aae4ee48d6


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