Management Group Report: MP3 Case Study America (RIAA) as it encouraged the illegal used/shared of audio music without the permission from the music owner. Both Napster and MP3. com were sued by RIAA for infringing the copyright laws. In contrast, Apple and Microsoft chose to license music from the traditional recording companies with the condition that both have to implement Digital Rights Management (DRM) measure to safeguard their music against theft and curb illegal proliferation of MP3 music which may hinder the recording music business.
However, each e-music retailer has their proprietary way of implementing the DRM and this led to the problem that iMusic purchased from Microsoft’s Zune store can only be played on Zune players and music purchased from Apple’s iTunes store can only played on iPods. The recording companies are happy with the existing situation as the DRM measure could be viewed as creating barriers to the proliferation of MP3 music and this move has made the traditional recoding music business via retailers sustainable. The MP3 technology has also faced numerous displacement challenges.
Unhappy with the monopoly of MP3 technology in digital music due to the huge lock-in users and the need to pay royalty for the MP3 patents, companies such as Microsoft and Sony have also switched to develop alternative proprietary technologies such as WMA and ATRAC in attempt to replace MP3. However, they are unsuccessful and MP3 continues to diffuse. Despite the numerous barriers imposed on MP3, it related technologies and applications have continued to grow. This paper shall provide a detailed discussion and analysis on the technological and the intellectual property aspects of MP3 that evolved over the past 20 years. MT 5001 IP Management Group Report: MP3 Case Study