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French Law Has Minimal Influence on Apple - Mp4 Converter

Updated March 21,2006

Towards French National Assembly's vote to open copy-protection technologies on music stores and degital audio devices, Apple Computer made reaction on Tuesday. Apple declared this would be a "State-Sponsored Piracy ", even in this case it would not affect Apple's sales too much. While, Piper Jaffray, senior analyst Gene Munster, alleged that the law would have minimal impact on Apple, to the opposite, Apple will most probably halt music sales in France. In his research note Munster says"In our opinion, Apple would prefer to remove itself from the French market than start what could be a slippery slope of other countries passing similar legislation".

"We believe Apple is more likely to drop out of the French market than open up its FairPlay DRM to allow iTunes to play on competing MP3 players, While this sounds like a drastic move, we believe it would not materially impact business. We estimate that approximately 20% of iPod and iTunes sales occur outside of the U.S. The French market alone is likely less than 2% of iPod and iTunes business.” Expert Munster said in his research note.

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