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June 9, 2008 7:50 PM

What Rights in Store at App Store?



News Analysis. Every week some Microsoft Watch commenter complains about DRM in Vista. Have you looked at what Apple's doing?

In March, Apple unveiled iPhone App Store, which is supposed to open up next month, presumably when the new 3G device launches on July 11. App Store is a brilliant marketing concept. Apple provides developers with a place to sell their applications—and keep 70 percent of proceeds—directly from iPhone. So, if you're sitting in an airport (as I am right now) and want to play a game, App Store is there for you.

There's a catch, and one I consider to be pretty big. Apple rights-protects App Store software with its FairPlay DRM, the same mechanism used for iTunes content. From one perspective, Apple helps ensure that developers get paid for their wares, which is commendable. But FairPlay also creates the same kind of platform lock-in for which critics (and some regulators) have damned iPod/iTunes. FairPlay protection restricts content to Apple mobile devices or iTunes. The DRM can do for iPhone what it has done for iPod: Tether content sold by Apple to the device.

Even Microsoft promotes choice on Windows Mobile. Apple has a different agenda, one wrapped in marketing fluff promoting choice. Yes, people can choose, as long as they pick Apple's platform.

App Store DRM is a dramatic departure from Mac OS X and forebodes what rights-protections mechanisms might come in Version 10.6, or Snow Leopard. Unlike Microsoft, Apple doesn't have product activation in its operating system. The customer relationship is one of trust. Apple sells a single Mac OS X license for $129 or a "Family Pack" of five licenses for $199. Apple also doesn't offer DRM or activation mechanisms for third-party Mac software from within the operating system.

Yet, Apple makes a distinction for its mobile platform. In a way, the rights protection isn't new to iPhone. Most iPhones are sold carrier locked, which is a form of rights protection. End users can move FairPlay-protected iTunes content to iPhone.

Some carriers sell rights-protected ringtones and other content for their phones. But Apple would be unique as a platform provider touting such a service. As end users buy more FairPlay applications, the more tethered they will be to iPhone and its successor products.

While Apple has a "feel good" image, it's just another company looking to make money. On the desktop, Apple differentiates from Microsoft product activation with little risk. Windows is the 800,000-pound elephant in the room. Mac is a mouse, by market share comparison. The mobile market is different, because:

  • Microsoft doesn't dominate the mobile device market.
  • The cell phone market is still growing, outpacing PC sales 3-to-1.
  • Marketing leading Symbian OS is a vulnerable platform.
  • FairPlay helped establish iPod/iTunes dominance; Apple can repeat the success on iPhone.

For all those people bashing Microsoft for DRM, why don't you look at Apple? If iPhone succeeds as a platform and comes to dominate the mobile market, Apple may someday replace Microsoft as leading platform vendor. It's inevitable that mobiles will displace PCs as primary computing devices. When is uncertain as is who will dominate, if any developer.

You think Microsoft is bad? Apple could easily be worse. As an end-to-end platform provider, Apple offers much fewer choices than partner-crazy Microsoft. You want choice? You may not get it if Apple wins over the mobile platform market. As a Russian friend from the defunct Soviet Union once said to me about choice there during the Cold War era: "Do you want white bread, or no bread?"

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Comments (19)

geo :

Apple's DRM doesn't "shut you off" or make you download "Advantage" programs like Microsoft. In fact, I forget that Apple has DRM at all with the exception of adding a computer (takes 15 sec to add a computer to your 5).

chips :

Joe says;
"For all those people bashing Microsoft for DRM, why don't you look at Apple?"
----------------------------------------------------
Well, Joe, here is my answer to your question. I use Linux. Furthermore, what does the DRM in an I-phone or I-tunes music have to do with the Mac OS X? Nothing.
So Please, limit your Mac witch hunt for DRM to the Mac OS X operating system itself, and maybe I would agree more with you.

Let me take your side here and help you some if I can. Mac's have a chip inside of them that the OSX looks for to verify its a genuine Mac. But thats more of a WGA feature than a DRM feature, although the two, do overlap. Now, supposedly, all this DRM crap that Billy Gates put into Vista, was not put there just to slow it down, but to enable you to play Blueray disks. What percentage of the computers coming out have Blueray disks Joe? Less than 1% is my guess after 1 and 1/2 years now that Vista is out. The question is, will Mac OS X has this type of "blueray DRM" in it, like Vista has, in the future? My guess is yes. Linux will not have it, but if it does, it would be removable by the user. Thats as per Richard Stallman. This would mean basically it would have to be a blueray driver, only that could also just be removed. At this point, Blueray has not really made the grade, and replaced standard DVD, and may never do it.

DRM is at the heart of the Vista Trainwreck, and has caused a lot of its problems. If DRM is going come to Mac OSX, it would be only to enable Blueray drives, and be a far watered down DRM as compared to Vista. That is my best guess. Yes there is some DRM (or rather WGA features) in MAC OSX, but compared to the total immersion of DRM everywhere embedded into the core of Vista, its almost nothing.

ZzarkLinux :

I am here to back up my fellow Linux users.
-
What if this Apple market is just a bubble? Kinda like the internet was when it was new. It's not like Apple has top-secret and mission-critical data under it's control. This means Apple can't lead consumers by the nose all the time, especially when the American dollar's value falling.
-
People and companies cannot just "switch away" from Microsoft. Microsoft owns the soul of many people and businesses. Microsoft basically owns company "data", not just "leisure music". Sorry, but the "give Microsoft a break" thing doesn't work on tech-educated and history-educated people...

The Hand :

Desktop Windows: Is it time to "cut and run?"
http://weblog.infoworld.com/enterprisedesktop/archives/2008/06/desktop_windows.html

"Every industry segment has its breaking point, a fact Microsoft learned the hard way with Windows Vista. With Vista, they ignored IT, choosing to instead kowtow to big media and the DRM crowd. The result was an unprecedented backlash as angry IT shops spurned Vista and drove the Save XP campaign to international attention.

Now we learn that Microsoft's one chance to get it right - to atone for its sins and perhaps salvage some modicum of respectability - is really just another PR stunt. Windows 7 will be Windows Vista "Part Deux." Same clumsy, monolithic architecture. Same crippling legacy baggage. Whatever hope may have been sparked by the whole "MinWin" fantasy has now been officially snuffed out."

whatever :

Joe,

interesting post; Apple is just like any other company looking to make money. Umm.. yeah; practically any Apple event starts with them touting their revenue, sales and profitability. If anything they're the least coy about making money in the industry.

But Joe, seriously, just how technology savvy are you? Applications are already bound to the platform they're targeting as soon as the first line of code has been written. The same goes for the iPhone platform. The apps are written in Cocoa Touch, DRM or no DRM makes sweet FA difference in terms of running these apps on an N95 or WinMo.

Code signing of apps (which as we have just discussed are *already* bound to the platform) is hardly an exercise of keeping the app bound to the platform, because um... IT'S ALREADY BOUND TO THE PLATFORM. *sigh*

It would be like complaining about Microsoft trying to get their partners to sign drivers or sign their Certified for Windows logo'd application MSI install packages, lest they be used in WINE. simply ridiculous. Nobody complains about that stuff because the only agenda is a stable platform.

Comparing all the above with content is, well, either not very smart or a bit manipulative...

Ok now that aside, i like most agree that Apple having too much control of the mobile market would be a very very bad thing. So therefore i hope Nokia, et al get off their hind and start doing stuff.

"It's inevitable that mobiles will displace PCs as primary computing devices"

Don't generalize statements like these...
Only iPhone can displace PCs...

Open Source :

Here's hoping Google's open source Android gets some traction. I don't necessarily trust Apple any more than Microsoft. Besides, I'm too used to Linux to shell out $10+ for every little iPhone utility/app/widget. It's just another money grab. Linux is the future.

sam :

Joe,
be fair now. You did a recent post about Microsoft selling its DRM music for less than 4 years, and planning on turning off the servers soon, leaving users with mostly worthless music, correct? What is more evil than that, as far as DRM music? Yes, apple has DRM in some of its music, it should be avoided as well. Use MP3 or Ogg, and forget both Microsoft and Apple.

Linux is free, and no DRM crap! It is the future.

db :

Joe,

I mostly enjoy reading until you write about Apple. You do not seem to know what you are talking about when you mention Apple. As pointed out above all iPhone apps are tied to the iPhone platform because the use the iPhone API's and libraries. FairPaly is used to cut down on sharing the apps with other who have not paid for them, not preventing people moving the app to another platform.

The sad thing about the iPhone is that it is locked in to using only OS X. The iPhone is a great design to bad Google's open source Android will not be able to run on it. Now this is an issue you should write about.

*snort*

On the day that WMD (Weapons of Mobile Destruction/Windows Mobile Devices) were read their own death warrant - who on earth wants that buggy windows crap in their pocket when they can have an iPhone - this is the best you can do ?

Lest we forget, MS took money for folks for a few years with a previous DRM model, and when they 'ripped and replaced' to the new one - blew all those customers away. Nice.

Apple DRM actually works. iPods are the most successful mobile jukebox out there. The iPhone has the WMD team retching into their wastebaskets.

Every time you try and hold back the tide, your credibility falls.

Myself, I'd have lead with the 'Exchange' spin, effectively locking out all other mail vendors from the iPhone. That piece of extremely sharp practice just breathed some coolness into that extremely insecure and buggy mail system.

But I dont earn the big bucks that you do.

---* Bill

Denis :

I understand that the iPhone apps DRM has two functions:

- Prevent copying to another iPhone
- Prevent non-Apple blessed apps from being installed on the iPhone

I take it that you object to the second right? Reading the article it seems that you don't like that iPhone apps run on the iPhone only, which as "whatever" pointed out is a slightly ridiculous complaint.

As for the second point, Apple does allow a corporate app being installed on iPhones-- only you need to tell which iPhones it will install on. Which is a good thing to do anyway.

The Hand :

Vista's so bad no one steals it
http://www.theinquirer.net/gb/inquirer/news/2008/06/10/vista-bad-steals

"The company (MS) said it filed lawsuits against 21 resellers in 14 states. The lawsuits allege that defendants sold copies of Windows XP and Microsoft Office that didn't have unique product keys. None of the resellers were accused of having stolen copies of Windows Vista"............

Vista is so bad, that even Pirates don't want it. Unless of course, you have the magic "shill" edition. Where is Andre, speaking of shills.

Joe;

I guess reading your latest post and the comments rendered, you went from Hero to Zero PDQ!

As far as DRM control goes, and I've said this before and that is this; DRM is here to stay with Microsoft and Apple. It will only increase with Apple products in the future. Vista is DRM -- I mean out of 50,000,000 lines of code, I often wonder how much of it is for DRM?

I've said that W2K Professional is Microsoft's best operating system that they ever came out with because of the level of DRM that is in it. It's very low. With XP there is much more, and with Vista DRM Ultimate -- Well...

Just think what Windows Seven will usher into the DRM arena...

Pop-Up Notification:
"Microsoft Windows Seven has detected an illegal proceedure and will remove all non-DRM registered software, data, and files on this system..."

JM :

Joe, I think the word 'trust' is key here in this article. I have no issue with MS making billions of dollars. I am after all a capitalist. My beef with MS his how they treat their customers. I have been burned a few times by them and I am now skeptical of any claim that they make on anything. I will not by an early adopter for any new application or service. I also think their licensing for non-commerical use is too expensive for applications like Office.


"The customer relationship is one of trust. Apple sells a single Mac OS X license for $129 or a "Family Pack" of five licenses for $199."

BlahBlah :

One of Joe's rare great articles

My biggest complaint against Apple has been that they lock the customer into an end-to-end agreement(hardware, OS and music) so I either deal with Apple or go home.

I don't want to have to buy Apple hardware and use their OS. I might not like Linux but I should be able to run it if I want. I might like the iPod but why do I need to use iTunes? - better yet why do I need to go to the excellent freeware apps to move the music from one device to another?
All this is so Apple can control the experience and get more money. If I did't like Windows, I'd uninstall it and use something else.

The very thing people whine about MS, Apple does so much worse(better?) and Apple get lauded for it.

I agree the mobile space is ripe for conquest especially against the lame Symbian incumbant which owns the vast amount of market share. Both RIMM and AAPL have many years ahead of them before they need to go against each other.

Let's hope iPhone doesn't end up becoming the closed device it's designed to be.

chips :

@BlahBlah :
"I don't want to have to buy Apple hardware and use their OS. I might not like Linux but I should be able to run it if I want."
----------------------------------------------------
I am not a Mac user myself, but it is my understanding that Mepis 7 Linux was optimized for Mac and does work on a Macbook Pro Intel laptop, and probably other Mac Intels. Also, XP and Vista will run on those, and most likely most versions of GNU/Linux. However, I am not promoting Mac, Linux is free, and will probably not require the user to buy a "new computer," the way Vista does.

whatever :

Mister Blah Blah,

relatively few words, yet so many inaccuracies. Are you gunning for some kind of record?

Maddog :

Joe wrote: For all those people bashing Microsoft for DRM, why don't you look at Apple?

I say, a pox on both their houses! DRM is their cancer, which they inflict upon us all.

DRM — insisted upon by the media holders.

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