Apple Defends Using DRM Software In Class Action Suit

Apple's Eddie Cue

In a trial looking into the legalities of APPLE's use of digital rights management software updates in iTUNES, APPLE SVP/Internet Services EDDY CUE told a court that the updates were necessary because hackers wanted to break apart the company's digital-music ecosystem.

Discussing the late STEVE JOBS' anger at the problem, CUE testified, "STEVE was mighty upset with me and the team whenever we got hacked.  If a hack happened, we had to remedy that hack within a certain time period or they [the record labels] would remove all their music from the store."

APPLE was also protecting the link between its iTUNES software, iPOD MP3 music player and the iTUNES music store. "All these other guys who tried the approach of trying to be open failed because it broke," CUE explained. "There's no way for us to have done that and have the success that we had."

CNET reports, "the class-action suit centers on an antitrust claim first made in 2005, but since amended over time, that alleges APPLE kept iPOD prices artificially high between 2006 and 2009 by using iTUNES software updates to harm competitors, which APPLE considered hackers. By continually changing its software to stop competing music stores like REALNETWORKS from allowing their music to run on consumers' iPODS, the plaintiffs argue, APPLE broke the law and harmed consumers so it could maintain its dominance in the digital music market."

The trial is in its third day and is expected to conclude next week. "The plaintiffs are asking for about $350 million in damages, but that amount may jump to $1 billion if APPLE loses the case," notes CNET.

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