What the CEO of Apple does not seem to understand is that there is one form of DRM technology that does work, flawlessly. This is the Secure X1 technology from a company in Santa Cruz, California called Media Rights Technologies (MRT). With the recent introduction of the Perform Act in the US Senate, articles have appeared in Washington, D.C. newspaper called The Hill stating that MRT offers the solution for what is called for in the Perform Act. The Secure X1 technology can completely illiminate the illegal downloading of streaming audio files as well as all other forms of Internet piracy.

This is move in the right direction. Notice Job's insistence that the Big Four relax the need for DRM. If this is achieved then all others would be forced to follow. What I don't want to see is a two tier system where some labels opt in, some out.

If you look at iTunes+iPod, the focus is on consistency. All tracks $.99, all playable on an unlimited number of iPods, all playable on up to 5 computers.

However, there is one exception, Audible only limits their iTMS bought content to be playable on 3 computers. I've experienced this, and let me tell you it irks me no end. I'm one of those people who come from a family of 5 adults (parents plus 3 children) and it's just frustrating to not be able to use any computer to play my Audible content.

Excuse me, Jim, but X1 technology is for protecting audio streams from being recorded not files from being copied. It pertains to such things as satellite and internet radio, not music files. The PERFORM Act also pertains to digitally broadcasting music, not the sale or distribution of music files. Simply put, X1 is to radio as XCP is to cd.

Furthermore, X1 is not being marketed as uncrackable DRM, just a DRM solution for a certain type of content delivery that lacks DRM solutions. Like any DRM, X1 will likely be cracked relatively quickly if adopted as a standard. X1 has yet to become significant enough to be subjected to widespread scrutiny.

As it stands, there has yet to be an uncrackable software DRM solution. Theoretically, all software based DRM is crackable. Hardware based DRM would be much more difficult to crack (though as Satelite TV has shown us, crackable nonetheless), however it would require an adaptation of a hardware standard on such a large scale that it would really be incredibly impractical from both a consumer and commercial standpoint.

I think this is what Jobs is getting at in this address. DRM literally does nothing to protect content.

Consider copying media a walk from point A to B. Without DRM there is absolutely nothing between A and B. With DRM there is a 10ft wall between point A and B. You can still get from A to B, you just need to go get a ladder (cracking software).

Right now P2P is available to anyone who wants it. Consumers have proven that, despite free (albeit illegal) content easily accessible, they will still pay for high quality, legitimate content. Removing DRM from pay-for content will not suddenly encourage these consumers to stop paying for content however it will likely bring over the people who only using p2p because there are no limitations imposed on how they use their content.

Essentially, DRM does nothing except alienate consumers who want to be able to use the content they pay for without limitations. Take away DRM and you open up the market much more.

This is an encouraging move, although in this case I doubt the sincerity of Steve Jobs. Fairplay has the same effect on the downloadable music distribution industry that Microsoft's proprietary office documents have - it creates a natural monopoly under a single vendor. In this case, it is in Apple's favor. Microsoft, ever the imitator, recognized this belatedly and introduced the Zune to counter.

Personally, I have almost stopped buying from the big labels due to the situation, turned to alternative labels for music, and I'm pretty happy with the decision. I find my eMusic.com subscription to be the most incredibly useful service I've seen in years. Their DRM free model satisfies my conscience and the artists and music is great! I think the labels will never buy into this model because they rely on mass influence and scarcity of choice to drive their business model. It's a shame that the most popular artists really bear the brunt of the music industry's decisions, and I am guessing that signing on a major label might someday not be the pot of gold or first choice for some artists.

Jim Coleman's claim (dare I say "advertisement"?) that Secure X1 is bulletproof DRM is ludicrous. For instance, all one would have to do is record (via hardware) the audio output of a played music file to defeat the Secure X1 system. Also, anyone with even a bit of electronics knowledge can easily create specialized hardware to defeat systems of this sort. It is virtually impossible to secure a system which is physically in the hands of someone who does not want it to be secure.

More to the point, music producers need to start recognizing the ill-will that DRM creates in the minds of music consumers. People want to use the music they have legally bought as they please. Consumers do not want some music executive to unilaterally revoke the Fair Use rights that were granted to them by congress in the Copyright Act, which is basically what is happening now with DRM. The law recognizes various "shades of gray" in how a consumer may use a copyrighted work which he has legally purchased, but technological lockouts like DRM are unyielding: They disallow "pirates", but they also disallow perfectly legitimate, LEGAL use of music.

Consumers won't stand for this very long once they realize what's being done to them. The only reason that this has gone as far as it has is that the general public has no idea what's being done. Once the DRM producers annoy enough people with arbitrary restrictions to get the people angry (which they are rapidly starting to do), then a lot of calls will be made to senators and representatives. Congress granted Fair Use rights for a reason.

I have no problem with the recording industry prosecuting pirates. I do have a problem with it attempting to police when and how legally purchased music is used. This needs to stop.