Apple: The Hackers Strike Back

Posted Oct 23rd 2006 4:05PM by Douglas McIntyre
Filed under: Bad News, Law, Apple Inc (AAPL), Indices

Microsoft has had all sorts of problems with people figuring out enough about the Windows code base to put in all kinds of viruses. And, the theft proof locks on most new automobiles don't keep out the really top-notch car thieves. So, why should Apple be different.

The kid who figured out how to crack DVD encryption has now unlocked the "FairPlay" code that makes iTune/iPod a closed system. Now other companies can sell songs that work on the iPod.

To make matters worse, no one seems to know yet whether the work around is legal. Apparently "FairPlay" is not patented.

Some of the music publishers might like to see Apple's virtual monopoly broken, so it is not as if all of the large companies involved with iTunes will side with Apple.

Maybe Zune can't hurt Apple. But, that leaves a 22-year old kid to do all the damage.

Douglas McIntyre is a partner at 24/7 Wall St.

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Reader Comments (Page 1 of 1)

10-23-2006 @ 7:11PM

zune said...

The damage was done by Apple when they tried to lock everybody out of the industry with proprietary file formats.

10-23-2006 @ 8:48PM

Mr. noitall said...

This is GREAT news! I think this 22 year old kid is doing GREAT work. Let's not forget that while Skilling & Lay were playing around with Enron's numbers, BACKDATER Steve and his friends were playing with those stock option dates. Does backdater Steve even know what "FAIRPLAY" means? I don't think so.

10-24-2006 @ 4:15AM

Zune said...

Jon Lech Johansen is a genius and my new hero. DoubleTwist will be a huge success and you gotta love him using Jobs own words against him, Wall Street Journal in 2002: "If you legally acquire music, you need to have the right to manage it on all other devices that you own."

Haha…I love it!