[Ecommerce] New York TImes: Apple Gets French Support in Music Compatibility Case

[Thiru Balasubramaniam]

<SNIP>

=93 Apple =92s lawyers might want to drink a glass of French Champagne toda=
y, but not a
whole bottle,=94 said Dominique Menard, partner at the Lovells law firm
and a specialist in intellectual property. =93The constitutional council
has highlighted fundamental protections for intellectual property in
such a way as to put iTunes a little further from risk of the French law.=
=94

Released late Thursday, the council=92s 12-page legal finding made
frequent reference to the 1789 Declaration on Human Rights and concluded
that the law violated the constitutional protections of property.


<SNIP>

Although the ruling could still require companies like Apple to make
music sold online to be compatible with other hand-held devices, it said
that the companies could not be forced to do so without receiving
compensation. The council also eliminated reduced fines for file sharing.

=93The constitutional council effectively highlighted the importance of
intellectual property rights,=94 Mr. Menard said, emphasizing that Apple
and other companies must be paid for sharing their copy-protection
technology.


<SNIP>
While the constitutional council highlighted the need for compensation,
it was not such good news for Apple and other companies that the
principle of forced interoperability remained in place, said
Jean-Baptiste Soufron, legal director of the Association of Audionautes,
a group opposed to copy restrictions.

=93It is good news for Apple because they receive monetary compensation,
but much bigger bad news if it forces them to license iTunes,=94 he said.



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July 29, 2006


 Apple Gets French Support in Music Compatibility Case

By THOMAS CRAMPTON

PARIS, July 28 =97 The French constitutional council, the country=92s
highest judicial body, has declared major aspects of the so-called iPod
law unconstitutional, undermining some controversial aspects of the
legislation.

=93 Apple=92s lawyers might want to drink a glass of French Champagne today=
, but not a
whole bottle,=94 said Dominique Menard, partner at the Lovells law firm
and a specialist in intellectual property. =93The constitutional council
has highlighted fundamental protections for intellectual property in
such a way as to put iTunes a little further from risk of the French law.=
=94

Released late Thursday, the council=92s 12-page legal finding made
frequent reference to the 1789 Declaration on Human Rights and concluded
that the law violated the constitutional protections of property.

The decision affects Apple=92s market-dominant iTunes Music Store by
undermining the government=92s original intention, which was to force
Apple and others to sell music online that would be playable on any
device. Apple=92s iPod is the only portable music device that can play
music purchased on iTunes, which lead rivals to complain about
anti-competitive practices.

Although the ruling could still require companies like Apple to make
music sold online to be compatible with other hand-held devices, it said
that the companies could not be forced to do so without receiving
compensation. The council also eliminated reduced fines for file sharing.

=93The constitutional council effectively highlighted the importance of
intellectual property rights,=94 Mr. Menard said, emphasizing that Apple
and other companies must be paid for sharing their copy-protection
technology.

The law, which had been approved by the French Senate and National
Assembly last month, was brought for review at the demand of more than
100 members of the National Assembly. The council=92s review of whether
the law fits within the French Constitution=92s framework is one of the
final steps before a law is promulgated. It now could take effect as
altered by the council or the government could bring it once more before
the Parliament.

The French minister of culture, Renaud Donnedieu de Vabres, advocated
enforced interoperability as a way to ensure diverse cultural offerings
on the Internet by limiting technical constraints on digital works.

While the constitutional council highlighted the need for compensation,
it was not such good news for Apple and other companies that the
principle of forced interoperability remained in place, said
Jean-Baptiste Soufron, legal director of the Association of Audionautes,
a group opposed to copy restrictions.

=93It is good news for Apple because they receive monetary compensation,
but much bigger bad news if it forces them to license iTunes,=94 he said.