The lawsuit is about other companies not being able to put DRMed content directly on iPods.
Yes, it's not Apple's DRM that's at fault here, it's that they made such a successful music player that other stores couldn't sell DRM-protected music for. It would be like a Blu-Ray manufacturer suing the largest DVD player manufacturer because their devices don't play Blu-Ray when everyone had DVD players, which affected sales of Blu-Ray discs.
Real didn't want their formats converted for playback:
"On January 20, 2000, RealNetworks, Inc. filed an injunction against Streambox, Inc. regarding the aforementioned company's product designed to convert Real Audio (.rm) formatted files to other formats. On December 4, 2001, the company was to launch the first coordinated effort to sell and deliver music from major record labels over the Internet, part of a broader initiative by the company to develop subscription Internet services aimed at Web users with fast Internet connections. In 2002, a strategic alliance was formed between RealNetworks and Sony Corporation to expand collaboration. In October, 2005, Microsoft agreed to pay RealNetworks $460 million to settle an antitrust lawsuit.
In August 2003, RealNetworks acquired Listen.com's Rhapsody music service, and renamed it RealRhapsody. It offered streaming music downloads for a monthly fee. In January 2004, RealNetworks announced the RealPlayer Music Store, featuring digital rights management (DRM) restricted music in the AAC file format. After some initial tries to push their own DRM scheme (named Helix DRM) onto all device manufacturers with the Creative Zen Xtra and the Sansa e200r as the only existing compliant devices, they sparked controversy by introducing a technology called Harmony that allowed their music to play on iPods as well as Microsoft Windows Media Audio DRM-equipped devices using a "wrapper" that would convert Helix DRM into the two other target DRM schemes."
Notice the involvement of Creative in making compliant devices. Creative sued Apple in the past for $100m.
Between 1995-2004, it was almost all net losses. They managed to build up assets over $100m in the first few years, probably from investors. Then they got the $460m from Microsoft.
They make revenue now between licensing streaming services and software for this - this provides ringtones, intercarrier messaging and the software they license is their Helix streaming software ( http://www.realnetworks.com/products-services/helix.aspx ). They also do microtransaction gambling games for mobile.
Ringtones, gambling, proprietary server products, no net income outside of suing people. This company needs to go. It's hardly surprising that Creative supported their crappy music format, they sued Apple for $100m and have ridden on that income for years.
Apple or Google can provide corporate streaming software and services to take out their server business. They can take away their carrier business too. That'll push them to just mobile games but they aren't making any profit so they should burn through their assets in a few years.
Comments
Yes, it's not Apple's DRM that's at fault here, it's that they made such a successful music player that other stores couldn't sell DRM-protected music for. It would be like a Blu-Ray manufacturer suing the largest DVD player manufacturer because their devices don't play Blu-Ray when everyone had DVD players, which affected sales of Blu-Ray discs.
http://en.wikipedia.org/wiki/RealNetworks
Real didn't want their formats converted for playback:
"On January 20, 2000, RealNetworks, Inc. filed an injunction against Streambox, Inc. regarding the aforementioned company's product designed to convert Real Audio (.rm) formatted files to other formats. On December 4, 2001, the company was to launch the first coordinated effort to sell and deliver music from major record labels over the Internet, part of a broader initiative by the company to develop subscription Internet services aimed at Web users with fast Internet connections. In 2002, a strategic alliance was formed between RealNetworks and Sony Corporation to expand collaboration. In October, 2005, Microsoft agreed to pay RealNetworks $460 million to settle an antitrust lawsuit.
In August 2003, RealNetworks acquired Listen.com's Rhapsody music service, and renamed it RealRhapsody. It offered streaming music downloads for a monthly fee. In January 2004, RealNetworks announced the RealPlayer Music Store, featuring digital rights management (DRM) restricted music in the AAC file format. After some initial tries to push their own DRM scheme (named Helix DRM) onto all device manufacturers with the Creative Zen Xtra and the Sansa e200r as the only existing compliant devices, they sparked controversy by introducing a technology called Harmony that allowed their music to play on iPods as well as Microsoft Windows Media Audio DRM-equipped devices using a "wrapper" that would convert Helix DRM into the two other target DRM schemes."
Notice the involvement of Creative in making compliant devices. Creative sued Apple in the past for $100m.
If you look at Realnetworks' SEC filings ( http://investor.realnetworks.com/sec.cfm?DocType=Annual&SortOrder=Date Descending ), their net income from 2004-2013 has been:
-$59m +$45m -$27m +$2 -$243m -$244m +$48m +$145m +$ 312m -$23m = -$44m
Between 1995-2004, it was almost all net losses. They managed to build up assets over $100m in the first few years, probably from investors. Then they got the $460m from Microsoft.
They make revenue now between licensing streaming services and software for this - this provides ringtones, intercarrier messaging and the software they license is their Helix streaming software ( http://www.realnetworks.com/products-services/helix.aspx ). They also do microtransaction gambling games for mobile.
Ringtones, gambling, proprietary server products, no net income outside of suing people. This company needs to go. It's hardly surprising that Creative supported their crappy music format, they sued Apple for $100m and have ridden on that income for years.
Apple or Google can provide corporate streaming software and services to take out their server business. They can take away their carrier business too. That'll push them to just mobile games but they aren't making any profit so they should burn through their assets in a few years.