Apple, Labels Focus on Copy Protection

In this file photo from Tuesday, Jan. 10, 2006, Apple Computer Inc. CEO Steve Jobs applauds employees during his keynote address at the MacWorld conference in San Francisco. As a new round of talks ramp up this month between Apple Inc. and major recording companies, Jobs has opened the door to higher prices _ as long as music companies let Apple sell their songs without technology designed to stop unauthorized copying . (AP Photo/Paul Sakuma, File) (Paul Sakuma - AP)

John Heard, an iTunes user in Santa Monica, said he would jump at the chance to buy no-strings downloads, even if it costs more.

"If I have the choice between something that doesn't have copy protection or it does, I'm always going to choose the thing that doesn't have copy protection," said Heard, 28, a television producer who spends about $300 a year on music, almost all on iTunes.

Buying a better-sounding track is appealing to David Sholle, 54, of Long Beach, a college professor who has purchased several hundred songs from iTunes.

"I'd be willing to pay for that," he said.

Anticipating a more competitive market, other companies are looking to break into online music sales. Online retailer Amazon.com Inc. first approached the major recording companies 18 months ago about launching an online music store.

A recent meeting prompted speculation that Amazon might begin selling unrestricted MP3s and other music downloads as early as this month. The company has declined to comment.

David Pakman, president and CEO of eMusic.com Inc., said the elimination of copy protection could help his company mine the rare, catalog recordings owned by major labels but not typically available on iTunes.

EMusic already sells music from independent labels in the MP3 format and boasts some 300,000 subscribers.

Pakman believes the major record labels will also eventually relent on requiring copy restrictions.

"We really think the market is breaking our way," Pakman said. "A noteworthy major will probably take some steps in this direction later this year."