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Originally Posted by Mojo Jojo
If they somehow pull it off, legally, then they will be the first music store to sell both file formats...
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Actually, no.
Real only sells the music in *their* proprietary AAC format.
What they do is, once the portable player is connected, it:
1- Transcodes it to WMA with DRM
or
2- Wraps the AAC file in a Faux-Fairplay DRM wrapper.
The music stays on the PC in Real-AAC format so that if you want to replace the pod with a non-apple player, you can still play the music you bought on it, which iTunes doesn't allow.
The technical response from Apple is pretty straightforward; they release a patch for iTunes and a new firmware release for the pod and the walled garden is locked in again.
After all, Real currently has exactly zero customers for this technology they announced but have not shipped.
Plenty of time for Apple to ensure nobody is tempted off the reservation.
Now, the legal stuff is where the fun starts.
After all, Apple is the dominant vendor on the market and they brag about having 70% market share.
That *might* be enough for Real to sue them on antitrust grounds.
The only thing I see coming of this is billable hours...