Apple's Stance on DRM Is Rotten to the Core

Microsoft Chairman Bill Gates invited a slew of influential Web 2.0 bloggers to a one-hour, anything goes summit meeting this afternoon. While a bevy of topics were discussed, one item that rose to the forefront of discussion was the controversial topic of Digital Rights Management (DRM).

TechCruch, along with other prominent bloggers, had the opportunity to talk to Mr. Gates for an hour today about several key issues, including DRM. Gates said that no one is satisfied with the current state of DRM, which "causes too much pain for legitmate buyers" while trying to distinguish between legal and illegal uses. He says no one has done it right, yet. There are "huge problems" with DRM, he says, and "we need more flexible models, such as the ability to "buy an artist out for life" (not sure what he means). He also criticized DRM schemes that try to install intelligence in each copy so that it is device specific. His short term advice: "People should just buy a cd and rip it. You are legal then." He ended by saying "DRM is not where it should be, but you won't get me to say that there should be usage models and different payment models for usage. At the end of the day, incentive systems do make a difference, but we don't have it right with incentives or interoperability." My repeated attempts to contact Apple concerning their DRM practices, and the much debated iTunes sales figures, have so far gone unanswered. The folks at iTunes has enjoyed in the digital audio marketplace may be coming to an abrupt end. Margaret Kane at