As analysts wait for Apple Computer's response to the law passed by France that would force the company to open up its iPod music player,
The Washington Post points out that the bill that
recently passed is a slightly watered-down version that includes a loophole allowing Apple to seek permission from artists, record labels, and publishers for exclusive access to their content. In that
instance, Apple could impose its digital rights management software on the downloadable music tracks for which it received exclusive rights. Apple has kept mum about how the new bill will affect its
business in France; the company called the proposal's earlier version "state-sponsored piracy." It did not comment on the
Post's story either. Analysts are divided about what the company will
do. About half think Apple will discontinue operations in France, while others don't think the law would have any affect on the company at all. Another possibility is that other countries could follow
France in opening up its DRM laws if Apple complies. By requiring Apple to enter into exclusive agreements, music publishers could gain the upper hand in pricing negotiations, adversely affecting
Apple's business. Meanwhile, in the U.S., a small consumer backlash is brewing, headed by consumer advocacy groups that want to see Apple remove its DRM restrictions from iTunes music files.
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