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iTunes in Europe: Legal Troubles Brewing? Status, Analysis and Outlook

Published by: Generator Research Limited

Published: Aug. 21, 2006 - 20 Pages


Table of Contents



NORDIC MARKETS

BACKGROUND

NORWEGIAN MARKETING CONTROL ACT

THE ITUNES COMPLAINT

Choice of Law

Changes in Contract Terms

Liability Waivers

Interoperability

NEGOTIATIONS

APPLE’S POSITION: INTEROPERABILITY

WAY FORWARD

Option 1: Ombudsman’s Finding - ‘Usage Restrictions are Unreasonable’

Option 2: Ombudsman’s Finding - ‘Usage Restrictions NOT Unreasonable’

FRANCE

ENVISAGED PROCESS

1. Technical Integrity

2. ‘Fair Game’ License Transfer

DOES THE LAW HAVE ANY TEETH?

‘GET-OUT’ CLAUSE?

UNITED KINGDOM

APIG PUBLIC ENQUIRY ON DRM

NEW MEDIA AND CREATIVE INDUSTRIES INQUIRY

GOWERS REVIEW OF INTELLECTUAL PROPERTY

OFFICE OF FAIR TRADING (OFT) ONLINE SHOPPING STUDY

OTHER DEVELOPMENTS

EUROPEAN COMMUNITY (EC)

INTERVENTIONIST APPROACH

TOWARDS AN ‘INTEROPERABILITY” DIRECTIVE?

ANALYSIS

INDUSTRY PERSPECTIVE

CONSUMER PERSPECTIVE

INTERVENTIONIST’S PERSPECTIVE

COLLISION COURSE



Abstract

  • Historic Roundup
  • Consumer Rights Issues
  • New French Law
  • Nordic Developments
  • EC Regulation
  • Analysis and Outlook
Apple's iTunes Music Store is currently open for business in 17 European markets which account for more than 36% of global music sales. But the company's closed, non-interoperable approach is causing concern to consumer rights representatives, government departments and regulatory authorities.

Three Nordic markets have said that Apple's approach is illegal. Meanwhile, in France, a newly-enacted law is intended to encourage an interoperable market for digital music and replay devices. At a higher level, the European Commission has been scrutinising Apple's strategy for some time, having become concerned that it may be having an adverse impact on the development of a healthy digital music market.

In the end, these developments could mean that digital music services and devices sold in Europe must be interoperable, like the case with CDs today. On the other hand, it may be that the difficulties in implementing a pan-European legal framework covering the area are such that nothing much will change at a practical level.

Drawing upon in depth interviews with the representatives from Nordic consumer rights groups, legal professionals and EC representatives, this report provides a clear explanation of the current situation as well as an analysis of the impact on the market both in the short, medium and long term.

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