A case against Apple involving the use of digital rights management for contents distributed through the iTunes Store has entered the trial phase. Apple had sought a summary verdict which the court has denied.
The case has been dragging since 2004. The plaintiffs, a class comprised of customers who purchased iPod classic, iPod shuffle, iPod touch and iPod nano models between Sept. 12, 2006 and March 31, 2009 are demanding $350 million in compensation.
The plaintiffs have alleged that Apple stifled competition by using the FairPlay DRM protocols that locked iPod users in the iTunes. They further contend that by locking, Apple made it impossible to play competing services. The main competition affected by it is RealNetworks and their product ‘Harmony’.
It is also the contention of plaintiffs that “Users were continually forced to either stop playing any songs they had bought from the Real store, or convert them to a non-DRM format, for example by burning the music to CD and then ripping the CD to their computer.”
Countering the plaintiffs, Apple argues that RealNetworks with less than 3% market share in 2006 was an insignificant player. Further the argument notes that RealNetworks itself has admitted to saying that it was at risk of being prosecuted by Apple.
In an earlier version of this case a judge of the US District courts had ruled in favour of Apple saying that there was no illegality in the respondent installing software that make it impossible for playing competitors’ content. But unfettered, the litigants returned back with another complaint in 2010.
[Source: Apple Insider]