Apple seeks legal loophole in French law

Apple Computer Inc. is looking for a legal end run around a new French law that would force it to make iTunes music playable on any digital player.

The French legislature passed the measure in March, in an attempt to protect consumers' rights to copy music they have bought from one format to another.

The law would force Apple, Sony and other music sellers to share the copy-protection technology on digital downloads.

Apple, which is the market leader in digital downloading, claims it would be hurt by the law, which it has criticized as "state-sponsored piracy." Its iTunes music can only be played on its iPod players because of copy-protection software.

Apple is in talks with French lawyers and with the Senate, which has yet to approve the bill, to find a legal way around the legislation.

A Senate committee has proposedan amendment saying copyright protection does not have to be lowered if the music seller has a different arrangement with copyright holders, such as the artists and recording studios.

A Senate is to vote on an amendment this week that would create a new regulatory authority with the power to order that exclusive file formats be shared.

The regulatory authority would have the power to order copyright protection be removed from digital downloads, but not where there is a competing legal agreement in place.

Apple could negotiate deals with recording studios and with artists that includes a clause demanding the copy protection remain.

That would mean Apple and Sony could continue to refuse to share their FairPlay and ATRAC3 file formats, provided they obtain the authorization of artists and other copyright holders whose music they sell online, said Valerie Aumage, an online copyright specialist with Paris law firm Dubarry Le Douarin Veil.

"As long as Apple can show that the restrictions conform to the wishes of copyright holders, there would be no case to answer," she told Associated Press.

Apple, whichrecently prevailed over recording studios in keeping the price of songs fixed at 99 cents, could demand that studios include a clause in contracts with each of their artists. There would be a lot of paperwork involved.

"If it's the difference between that and not doing business in France, it's probably worth the paperwork," said analyst Roger Kay of Endpoint Technologies Associates, a U.S.-based consulting firm.