DRMs and competition: a new strategic stake

The case of the online music market Links between competition and intellectual property laws have already been studied (Eagles, 2000). They are worth being studied in the particular context of a rapidly emerging market of online music 1. They take two main forms:- On the one hand, online distributors have to get rights to exploit contents. They must get these rights from owners. In 2001, as the online market was hardly emerging, the majors of the recording industry tried to make a strategic use of their catalogues to prevent potential competition and to maintain their positions (see Pressplay et Musicnet).- On the other hand, online distributors have chosen to use Digital Rights Management systems (DRMs) in order to distribute music in a safe way. Then they must obtain licences from the owners of these DRMs. Moreover, these DRMs that stand out as a way to protect Intellectual Property Rights (IPR) are themselves protected by IPR (patents in the USA, author’s rights and patents in the EU). This paper deals with this second aspect. 1 – DRMs: a growing market and a crucial stake for the music industry 1.1 A newly born market On a contents distribution platform, contents may be protected by soft- as well as hardware. DRMs are not only technical means to protect the contents. They also aim at managing rights to use, to distribute and to control