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Wednesday, October 25, 2006

Bad News for Apple

DVD Jon, the guy who cracked the encryption on DVD's at age 15 is at it again. According to a Reuters story at WashingtonPost.com Jon Lech Johansen has cracked the "Fairplay" copy protection Apple uses to keep iPod users on the iTunes plantation of music downloads.

He's planning on licensing the technology to other companies, opening iPods up to other music services.

Considering the iPod and iTunes have been the big drivers of Apples resurgent profits the last few years, this isn't good news. I'd expect a small downward move in Apple stock today based on this news, though it won't amount to much in the near term. (I am not an investment advisor, don't use this as advice on how to manage your portfolio.)

Before you get all giddy about using some other music service to load up your iPod with tunes, keep in mind that Apple has copyrighted the techology, and will probably file a lawsuit against Johansen and his company in an attempt to keep all those users feeding at the iTunes trough.

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Blogger Ted said...

The ZEN by Creative Labs holds 8 gigs of music, pictures and etc. You can load it just as easily without the need for iTunes, is half the price of an iPod and oh yes, it has a replaceable rechargeable battery. After weighing the options, it was the best choice for me. With an iPod, when the rechargeable battery dies, you throw the thing in the trash can and pay out the nose for another one.

6:40 AM  
Blogger Crazy Politico said...

I think there are a lot of better choices than the iPod, too. The thing about being the first on the market was the big lead they got in marketshare. Now, even though you have a Zen, I'll be a lot of folks call it an iPod.

10:17 PM  

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