Absolutely. Its not stealing. Folks need to understand that MS and Universal were not looking at the business deal as just the player. It was the whole ball of wax. The player, song purchases, and music subscription. No doubt in order to get something they wanted MS ponied up the $$ per unit sold. Probably as someone mentioned above in relation to the subscription service. Where Universal was given the choice of a certain size of the subscription pie or gambling on making more by taking a bit from the money from Zune unit sales. Regardless the "piece of the unit sale action" is VERY common in the electronics industry.
Of course the user pays the tax. Its built into the $249. It means MS makes less on each Zune, but you pay for it. The problem with this "royalty" is that Universal hasn't provided anything to the product to justify the royalty. If Universal had provided some piece of IP to the overall design of the product then most folks probably wouldn't be complaining. One could also argue that more people would be complaining if they knew how often they get tagged for royalty payments on products in many cases whether they use the taxing feature or not.
Actually Apple has already been taken to court on whether they were a monopoly, in Europe, by France. Apple won. The courts ruled that their were plenty of alternatives in the market and as such Apple was not doing anything wrong. Yes they have tied their iTunes music store offerings to the iPod via Fairplay. Not entirely because they are evil, but they negotiated with the content providers who required some form of DRM. Fairplay apparantly satisfied the content providers requirements. Just because Apple's competitors cannot get their heads together to develop a product that can compete isn't Apple's fault. Where do I come up with this moronic bullshit? I've worked with Microsoft, Yahoo, Napster to discuss their plans while working at a competitor of Apple's. Never did anyone whine about Apple being unfair because they wouldn't license Fairplay. They and the company I worked for couldn't get on the same page on how to compete and none of them were willing to invest the time to work on the whole package, SW, HW, storefront to make it a good experience for the end user. Apple didn't make us bumbling idiots....we did that ourselves.
As the author noted in the article the intent of laws concerning monopoly are intended to prohibit unfair competition. Saying that Apple's refusal to license Fairplay is unfair is like saying Coca Cola and Kentucky Fried Chicken are monopolies because they refuse to license their "secret recipes". With regards to Microsoft they ran afoul of the Justice Department because they used their dominance in the marketplace to stifle competition. Things like telling PC manufacturers if you offer another OS on your platform... like say Linux, then the PC maker could expect Microsoft to raise the cost of their OS to said PC manufacturer such that it would make the PC manufacturers product prohibitively expensive in the market. Specifically Dell, HP, and other PC manufacturers were strong armed by Microsoft to NOT offer/support products that competed with Microsoft offerings. Merely not willing to share IP with competitors who are getting their butts kicked because they offer uncompetitive products is NOT illegal.
Universal Calls MP3 Users Thieves
Universal Calls MP3 Users Thieves
Has Apple Finally Become a Monopoly Like Microsoft?
Has Apple Finally Become a Monopoly Like Microsoft?