• January 20, 2006

Digital music is booming, but rights management issues present a growing challenge to this nascent field. That's one conclusion to emerge from two separate reports issued Thursday--one by the London-based International Federation of the Phonographic Industry and the other by New York-based research firm eMarketer.

Overall, 420 million tracks were downloaded last year--almost triple the 156 million singles downloaded in 2004, according to the IFPI. But, the report noted, digital rights management issues remain "a significant challenge," largely because the major services--Apple, Microsoft, Sony, and Real Networks--use different technologies. "[M]aking digital music players compatible with the various online music services is a top priority," states the report.

eMarketer also reached a similar conclusion. "DRM technology, in combination with restrictive terms-of-service conditions ... can have a negative impact on a user's rights to fair use and first sale--rights that are fundamental in the offline world," stated the report. "Furthermore, a lack of DRM standards and interoperability are making the market for digital content and digital equipment increasingly complicated for the consumer, which will inevitably hamper the growth of the entire sector."

-- Wendy Davis