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[PSUs]| Friday 8th April 2005 |
However the Congressional subcommittee hearing on Digital Music Interoperability and Availability was told by William Pence, the chief operating officer for Napster, that new laws are not necessary, as the market will eventually force competing operators to co-operate on digital rights management technologies.
'It is my belief, and the essential point of my participation today, that marketplace forces will continue to drive innovation in the DRM arena with attendant consumer benefits - new ways to enjoy digital music at a variety of different price points - while also gradually solving the interoperability problem,' he said.
Pence added that although he believes opening up the iPod would benefit consumers, legislation is not the way to do it.
'I do not see government intervention as the solution, as it would stifle competition
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Giving evidence for the Apple-supported Progress & Freedom Foundation, its president Ray Gifford said that the committee should 'celebrate the success of the iPod'.
'Much of the brow-furrowing over interoperability in digital music stems from the success of Apple's iPod platform,' he said. 'I urge this subcommittee not to give in to the politics of platform envy.'
He also noted that without the success of the iPod the digital music market would scarcely exist.
'Digital music is a new market, and the iPod platform and its remarkable success is the harbinger of that market and what it can be. In turn, this competition for the market has spurred other innovation, other platforms and other business models to emerge to challenge the iPod platform. This is a type of competition that benefits consumers immeasurably,' he argued.
Apple chose not to appear at the hearing nor explain its absence. Subcommittee chairman Lamar Smith was not impressed.
'Apple was invited to testify today but they chose not to appear,' he said. 'Generally speaking, companies with 75 per cent market share of any business, in this case the digital download market, need to step up to the plate when it comes to testifying on policy issues that impact their industry. Failure to do so is a mistake.'
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