Random Findings VII

I want you to remember to have great strength and have great courage. There can always be a little bit of fear or nervousness, but courage overcomes that. Your desire to win, to be the best you can be, becomes greater than anything you fear. That’s courage. That’s how you do it.

     - Kay Yow

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Encroachment in Information Mining Technologies – Part VII

If we give the Internet legitimacy, then the users of the Internet will be better able to protect themselves. This will also help create better citizens within the Internet. These citizens must understand that they are involved in the creation of a new paradigm. They are creating the digital persona. They may identify themselves as this digital persona, but they also must understand the implications of their actions in the physical world. There also needs to be a focus on information education. We now have loads of information sent at us, but who can process it all? What does it mean if my credit score is below 600? Sure, I’ll buy that product I can’t afford because I have 3 months to pay it off. This kind of attitude will fail this generation financially, but the disconnect between having physical money, spending borrowed money, and earning credit prevents this generation from understanding the consequence of their actions. To know – the best defense against the information wave known as the Internet.

Of course, part of the ability to educate will come when more are involved in the Internet itself. It is generally a middle-upper class phenomenon. It requires computers, electricity, connectivity, and a general ability to spend time learning how to use. In many parts of the world, including rural areas of the United States, this just isn’t an option. Again, the least-advantaged are disenfranchised at the expense of the advantaged. Therefore increasing participation on the Internet will help in determining how information should be used. This is a global concern, but there isn’t a global dialogue.

Open dialogue will, I predict, improve the quality of browsing as well as the information that companies can glean. Most of us have nothing to hide, and as a result are more than willing to share our buying patterns in hopes of getting similar products that we will like. However, that same group does not want their credit card number released onto the Internet for anyone to use. Another element of the government’s participation is allowing the computers that the Internet runs on to be moved to international locations. America has no right to claim ownership over a global commodity like the Internet. Overall, participation is a key step to making sure that the use of information on the Internet is somehow regulated. If governments are unwilling to regulate, then the masses must do so.

I think that it’s important to note that just because the Internet is a technical entity does not mean that a technical solution exists to all of its problems. This is the issue of the silver bullet that we discussed in class. Technological fixes turn into an “arms race” of build, break, repair – repeat. Technologies such as tor and Anonymizer allow the user to hide from where they are browsing. This protects the user, but does not allow the company to better serve their client. Should the user have to lose on certain offers because they are afraid of being tracked? In today’s Internet, the answer seems to be yes. Better rules, better software can be written, but someone will break it, and the cycle will continue. Technology is the foundation of the Internet, not the solution of the information problem on the Internet.

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Encroachment in Information Mining Technologies – Part VI

But what if we just didn’t know? Couldn’t ignorance be bliss? The problem is that many are using the Internet without, “the cognitive ability to appreciate the possible consequences of disclosure of personal information” (Friedman and Thomas). Even something as simple as describing one’s daily route to school for a class project in following directions and then posting it online could potentially allow a stalker or harm doer to more easily make one a target. Beyond the web, imagine how one’s SIM card could be used in their telephone. Whenever you walk by the GAP in a mall, it will send you a text message with their latest sale offer (Friedman and Thomas). It can be scanned as you enter and exit so that there is a record of where you have been. Again and again, the trust between the user and anonymous continues to break down if we don’t know and understand the implications of sharing information digitally.

I still think that the academic community is looking too hard for experts to find the solution to these problems. This is a problem that needs to be solved by the masses. Where the experts can help is to understand whether the issues we are dealing with are inherent to the Internet or simply a function of computer software in general (Tavani). There needs to be an emphasis on better software design, this is true, but, in the absence of improved code, there needs to be an information revolution on the Internet. The users of this domain have to demand that their information be used within the limits they impose, and the companies need to respect these demands. The need to deliver the solution that aides the least well-off is important to ensuring that as the Internet grows, the information in it does not become a threat to our identity. Furthermore, the users need to become better educated about what they should and should not expose about themselves. Finally, there needs to be a greater sense of trust between users. The Internet shouldn’t be a playing field for harm doers. It’s up to the users to make sure that these issues are solved.

Being on the Internet is a tight rope act between finding what used to be unknown and leaving a trail where one can be followed. Constantly wiping out the trail behind you makes the process of “surfing the web” much more difficult, but is probably a necessary action in today’s Internet (Tips). However, even this done well might not be enough. The real solution is exposing the Internet for what it is, an elevator where everyone is listening even if they are acting as if they aren’t paying attention, and moving from there to develop a more participatory solution to the issues presented.

As I have stressed throughout most of this paper, I think that education is an important marker of progress in dealing with this topic. How can we educate about something abstract like the Internet? Bring it into our curricula and help develop good browsing techniques. Show students that the Internet isn’t about pornography, social networking sites, and online games. Create the paradigm of a digital identity successfully so that future generations are able to know the difference between their physical self and their online persona.

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Encroachment in Information Mining Technologies – Part V

This brings up the issue of protection and its relationship with privacy. In worldview 1, we let the church protect us. This evolved into a more state-sponsored role as worldviews progressed. In the next worldview, we might need to protect ourselves. Our identity’s are now what’s at stake, and something as large as the national government exists at too macro a level to be the protecting entity. It’s going to be an integral part of the new worldview to define how government and the individual co-exist. In many ways, governments are transcended by the seemingly limitless bounds of the Internet, and yet, it is the government that can best restrict our access and experience on the Internet. Should they be allowed to do so? Is China justified in blocking content with which the ruling party doesn’t agree? What about our government and its domestic spying practices? The argument from both entities is that they are protecting the masses from potentially harming themselves. If the goals were simply this altruistic, none would have cause to worry. However, it is often the case that information is misused and corrupted to serve a purpose. Can the government be trusted to not conduct a McCarthy-esque digital witch-hunt? The ability to protect an identity on the macro scale is too large a task. Therefore, I think that privacy and protection become roles relegated to the individual on a micro scale, and the government should set the guidance for proper governance of digitally gathered information.

Let me pause and define privacy. Privacy is, “an individual’s desire and ability to keep certain information about themselves hidden from others” (Fule and Roddick). The important thing to remember here is that privacy online delivers back to the individual their humanity offline. Protecting this privacy is a critical part of any future where reality and the Internet must co-exist.

Is it possible to data mine and exclude sensitive information? Fule and Roddick seem to argue that this can be done with improved rule sets for selecting data. Also, one has to understand the rules that they are constructing and see where potentially harmful information can be found. This is analogous to saying that we must predict that whatever we create can be used for harm and take every step imaginable to make sure the harms that we imagine cannot become reality. As has been demonstrated throughout the course, to completely think of every use of a product is impossible. Even if this were possible, their solution requires the user to interface with the data-mining algorithm to make critical decisions. Oftentimes, it is the user themselves who does not understand the information and its implications. This partial solution, and the derivatives that have come from it since, is the reason why I say that a technical solution is not possible.

I think that there are professionals in computer science who agree that this is a social issue that must be discussed. Above all else, it is an issue of identity (Woodbury). Am I willing to sell my identity for the convenience of anonymity? The key to answering that question is knowing. I have to know to whom I am giving my information, to whom they will give my information, and how anyone will use my information. Woodbury stresses that we cannot trust that Internet businesses will follow ethically acceptable business practices. It may not be in their best interest to secure user data, and as a result, the user’s information may be up for sale to the highest bidder. Knowing that, what are you willing to share? Your identity should not be a commodity sold to the highest bidder, but by doing business on the Internet, you are risking this exact issue. The consumer must demand from the company that their identity be protected.

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Encroachment in Information Mining Technologies – Part IV

There is a constant struggle to expand the circle of inclusion for ethical thought in discourse. This is often aimed at natural environments – animals, plants, ecosystems – but what about digital persons? With the development of games such as World of Warcraft and EverQuest and online communities such as Second Life, digital beings are becoming an integral part of people’s lives. What of our ethical domain transfers into this digital world? This question was debated when an early multi-user role-playing game had a user digitally control and rape other users (Dibbell). What did this mean? The community came together and discussed the issue, but was unable to reach a conclusion. An administrator of the game arbitrarily deleted the offender’s account. However, the question of ethical dimensions in a digital world was not answered. Do our physical ethics exist in a digital world? They must if the load of information that exists on the Internet is to be dealt with appropriately. We cannot lose the trust that we’ve built into our system of digital exploration, and this requires us to extend our circle to include our digital personas as well. Has this technology created more harm than good? Barbour warms that, “technology has created subtle ways of manipulating people and new techniques of electronic surveillance and psychological conditioning.” What will be the cost of these new techniques to our physical and digital personas?

I think that it is critical to look at how trust develops on the Internet, maintain this first pass, and then improve on it. When the ability to purchase online became an option, my mom refused to do so. Why? She didn’t think that should trust online retailers. How can one trust an individual who can memorize and then use your credit card, but not trust a machine that is built to protect your information? There was a barrier between the physical meaning of trust and the virtual meaning of trust. This barrier has crumbled for my mom, and others as well. This is because Internet commerce has found a way to build healthy relationships between the companies and the consumers. However, I know that my mom won’t store her credit card information in their databases. Ease of use has not yet won over her need to feel financially secure. This suggests to me that there are varying levels of trust, and that each time an incident of exposed data is revealed, that level of trust takes another step backwards. So how do we build trust? I think a more open attitude is required here. It is the inability to discern when information is being gathered, and how it is being used, that leads to the breakdown of trust between physical persons and online companies. Building trust is an integral part of the evolution of information and identity on the Internet.

This is one place where the government could make a big, positive difference. Already having displayed its ability to mine such information (Jordan), the government should now take an active role in regulating how this information can be handled and economized. This would give a legitimacy to the Internet businesses who need to use the information for business practices, but protect the consumer from the potential harms of data mining, accidentally released data, and data solicitation. If the consumer’s voice was backed by a government regulatory agency, then we would start to see the kind of information maintenance needed to help the Internet grow without threatening individual’s identity’s. This does not give the government access to this kind of information. Though it is an overseer, it must be one through a black box model. It can check inputs and outputs, and when results are incorrect go back and tweak the inside mechanics, but it should not actively be involved with the data itself. It seems that the government has already shown that it cannot ethically be the body where data is stored and distributed (Jordan), but should attempt to repair the damages done by enacting a more public policy of better governance over data garnered through the Internet.

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Encroachment in Information Mining Technologies – Part III

We must find a way to process the information that is constantly thrown at us. However, it is important to maintain the elements of our own information that don’t need to be shared. Greater amounts of information for progress don’t excuse those using the information from taking our identity or humanity. We shouldn’t wait for a crisis to try to enact these changes. It is the duty of the consumer to demand change from the producer. The producer’s best interest is to continue the business practices that have allowed them to succeed thus far. Therefore, a consumer revolution of sorts must occur to ensure that information is appropriately used. As Barbour notes, “Recognition of the inadequacy of old patterns plus the vision of positive alternatives could produce major changes,” without the need for a disaster like AOL’s search leak (Zeller Jr.) to repeat itself. Therefore a delicate balance must be found between use and intent, with an eye out for preservation.

Even if the information is tacitly shared, the question of who owns the information must still be asked. Do I have a right to pull my records out of the databases of an online retailer with whom I no longer plan to do business? Is this true of other business contacts that we have in the physical world? I think the issue of ownership scares the general public more than the other issues because of the permanence involved. If I have privacy concerns, then I simply stop browsing the Internet. However, if anyone has ever saved a page with my information on it, I cannot force him or her to get rid of it. Furthermore, through simple technology based techniques, companies are now able to store information about one’s search, browsing, and shopping habits. This means that they can not only tailor their advertising towards products that you would more likely be interested in, but also hold information that the user feels should be kept secret. I have to carefully weigh the need to do business on the Internet versus my right to privacy. If businesses cannot guarantee my anonymity, then I am forced to take my privacy into my own hands. The lack of any kind of regulation in this area means that the companies only report to themselves. This responsibility is one that is bound to create a very grey area in terms of right and wrong. Maintaining the integrity of data while making a profit is simple for any company, but when economic tides turn, and the data is a valuable asset, what is to bar the company from freely using a user’s information to earn a profit?

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Encroachment in Information Mining Technologies – Part II

Should collecting information about people without their knowledge be allowed? At the heart of this question, is whether or not our privacy is maintained if others are collecting information about us. This is the most serious implication here because the others are derivatives of this question. Ultimately, one should understand that, “everything we do on the Internet should be treated like an elevator: people are going to be listening,” (Tips for Protecting Privacy Online) but the issue of privacy isn’t concerned with what we’re willing to share that is exposed, but what we aren’t willing to share that is exposed (Zeller Jr). The danger is that the fragile relationship between the individual and the anonymous will crumble. It is this desired anonymity of the web that makes it such an attractive sphere of commerce and relationship. What happens when we lose this security of anonymity? The price that we paid, “depersonaliz[ing] our culture and los[ing] the compassion and pity … perceived in [Roussea’s] Noble Savage” (Sassower, 59) all go for naught. We feel a sense of angst because we’ve given of ourselves and received nothing in return. In fact, it could be perceived that we’ve lost more than we gave. Information must be gathered, but what is the cost of leaving pieces of one’s self behind? If I can still be identified, then my need for, and trust in, the Internet disappears.

In previous worldviews, information was either given to the individual, or was compartmentalized enough to be properly processed. This is no longer the case. Information is in and of itself a paradigm that is becoming more and more difficult to process. Kuhn calls a paradigm, “what members of a scientific community share,” and this can be extended to the Internet by looking at all users as the scientists experimenting on how the web connects us and allows us to interact. Beyond processing, comprehension is also becoming an issue. The next worldview must address information and see how it is affecting the general ability for humans to evolve the understanding between the various paradigms that co-exist. If information could be better understood, then the potential to bridge paradigms would increase, and the potential progress derived from this is quite exciting.

However, the notion that less is more fails here. Why? Because the less of ourselves that we give, the more that we lose. At the same time, giving up too much of ourselves, and then having this information blatantly misused makes less of us as individuals, while returning little in terms of better service, better experience, and better understanding of our identity. Sassower comments that, “Computer technology can replace some of the uses of a library, but it must be treated respectfully … in order to sustain our humanity” (Sassower, 101). Similarly, the Internet can replace much of how we interact or exist, but it must be done in such a way as to preserve our humanity. When we exit our browsers, it is important that we are still human. Giving up too little of ourselves denies us the experience of the Internet, while giving too up too much leaves a shell where a human once stood.

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Encroachment in Information Mining Technologies – Part I

Data mining has slowly, and silently, pervaded into the lives of everyday digital consumers. Using Gmail? Look at the advertisements on the right hand side of the screen and notice that they’re related to the contents of your e-mail. Are you a social networker? You’ve released information about yourself onto the Internet for almost anyone to see, collect, and use. Use a telephone? The government has filters on all international phone calls monitoring your conversation and electronically recording your phone call. The ability to be monitored has reached levels never before imaginable. What does this mean to our rights to privacy? How can we be sure that our humanity is preserved if we become binary entities? What are the limits of digital data mining in a modern, connected worldview? These are the questions that I plan to answer in this essay.

What are some major ethical implications of data mining? One major issue is whether a person’s basic rights are being violated when someone is collecting information about them, and they don’t know that it is happening. While it wouldn’t be fair to say that this question has never been asked, it has never been truly answered. When it’s beneficial (Vascellaro), then maybe the user doesn’t mind. However, when things go wrong (Zeller Jr.), then the user’s very identity is in danger of being rewritten. Another issue that needs to be addressed is the question of ownership. Who owns the path through which you travel the Internet? This is in fact very valuable data, and an organization named Alexa (http://www.alexa.com) gathers this information to rank websites. The result – whether explicitly or tacitly gathered, there is a trail of one’s voyages across the World Wide Web, and personal information can be gleaned from this trail. The owner of this information isn’t the trailblazer. Also, I think it’s important to look at the role of government in this arena. The government is often labeled as, “Big Brother”, but it has the opportunity to help with the regulation and governance of this issue (Arrington).

The issue of ethics in data mining is by no means new in computer science, but the questions surrounding the issue seem to lack concrete answers. While ethics lack concrete answers in general, it is the shortage of constructive dialogue that seems to be holding back the potential development of solutions in the realm of data mining and the Internet. I think that it is generally held that there is a technological fix to the issue of privacy and data mining, but I disagree, and I think that this is a social question that must be answered by the masses and not the experts.

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Building a Case Against Apple's Digital Media Business Practices – Part II

There hasn’t been much mentioned about consumer harm as of yet, and so the remainder of this paper will focus on whether the DRM software model that Apple has created harms the consumer’s rights. Apple’s ability to gain access to the music industry’s catalogue of music came when they demonstrated the strength of their DRM technology. The technology limits the amount of sharing and general distribution of the music files in order to preserve the copyright. However, in doing so, it tends to curb the consumer’s expected ability to use the music.

Is Apple’s DRM software fair? First, what does fair mean in this context? The question is whether the restrictions do a good enough job protecting the musician while allowing the consumer to use the product that they have purchased. The simple answer is yes. The extensibility of the DRM software includes unlimited CD burns, unlimited devices, and five computers. This is a significant amount of liberty given to the consumer considering the strength of the DMCA. One of the problems facing the distribution of digital music is that because the initial onslaught was completely illegal the expectation is that music should be distributed as freely as desired at the least price possible. This was never true of music before, and won’t be in any business model pushed forward by the music industry. Therefore, part of the challenge is teaching proper usage of digital media to a consumer base who has quickly gotten used to its mischievous ways. Through its DRM technology, Apple is helping create a better consumer.

By providing quality MP3s, allowing a quite liberal degree of sharing, and offering an extensive music library, Apple has shown that the market for legal digital media distribution is quite strong. The iTunes Music Store has taken advantage of the “Long Tail of Software” , which claims that without traditional infrastructure needs the Internet can offer a greater range of retail products than conventional retail stores. Apple claims that every song in their music library has been sold at least once. This is a much greater distribution of product sales than the traditional retail store, which gets 80% of its revenue from 20% of its inventory. Why are there consumers when finding the content online for free is also an option? The answer is usually time and quality. The time invested in finding the version at the quality desired is worth much more than the $0.99 to buy it immediately. As a result, these two factors have created a consumer experience that in fact benefits from the iTunes Music Store model.

Overall, I would argue that the iTunes Music Store has helped show that the next evolution of the music industry is sustainable. As a result, it has created an efficient business in digital media distribution. However, it has tied-in the sale of its hardware with the installation and configuration of its software model, and I think I have showed that enough circumstances exist to warrant an anti-competitive query into these business practices. I’m not sure what the result of breaking up this relationship would be on the consumer, but I think if it’s done properly, then it will in fact create a more competitive industry for digital media distribution.

Bibliography

  • DMCA Up for Review – O’Reilly Mac Devcenter Blog. http://www.oreillynet.com/mac/blog/2002/12/dmca_up_for_review.html. December 10, 2002.
  • iTunes 2005 revenue could equal 5 percent of U.S. music sales: Call it a powerhouse. http://fortt.com/blog/2005/01/itunes-2005-revenue-could-equal-5.html. January 24, 2005.
  • Q&A: Jobs on iPod’s Cultural Impact. http://www.msnbc.msn.com/id/15262121/site/newsweek/page/2/. October 16, 2006.
  • Xbox 360 and iPod interoperability? Sort of. http://news.com.com/Xbox+360+and+iPod+interoperability+Sort+of+-+page+2/2100-1041_3-5931847-2.html?tag=st.num. November 4, 2005.iTunes Ranks with Music Retailers. http://www.macnewsworld.com/story/47525.html. November 23, 2005.
  • iPod market share falls – to 87%. http://www.pcmag.com/article2/0,1759,1712064,00.asp. November 4, 2004.
  • Zune: First Full Review. http://www.gizmodo.com/gadgets/portable-media/zune-first-full-review-212255.php. November 3, 2006.
  • iPod. http://en.wikipedia.org/wiki/IPod#Sales. October 18, 2006.
  • The “efficiency defense” in the US American merger policy. http://opus.zbw-kiel.de/volltexte/2003/1065/. April 8, 2003.
  • The Long Tail. http://www.thelongtail.com/.

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Building a Case Against Apple’s Digital Media Business Practices – Part I

In an attempt to look at the business and ethical practices of the largest companies in Silicon Valley today, I have done some research and written two papers on Apple’s Digital Media and Google’s ethical responsibility dealing with information gathering. I will present these over the next couple of days in more digestible chunks, and would be interested to hear what others think.

The discussion of intellectual property has entered uncharted waters as the ability to duplicate digital media threatens the business model of the music and film industries. The RIAA has come out of the gates swinging, and has shown that it is willing to take on all challengers – Napster like entities, college students, foreign governments – who violate conventional copyright laws. The United States government joined the fray in 1998 with the passage of the Digital Millennium Copyright Act, but this too has created a sense of overprotection for the industry, and complete exposure of the consumer . Many have argued that it is the industry that needs to change its outdated models, but there was a great deal of resistance to this when digital music was seen as an Internet fad. Quickly thereafter, it was inevitable that something needed to change. When that change came, in the form of he iTunes Music Store, there were mumblings of industry protectionism overreaching its bounds into the user’s consumer rights. This paper will look at whether this claim is true or not, and discuss the implications of intellectual property in a digital age.

In order to survive, the music industry started to evolve its business model in the form of such enterprises as the iTunes Music Store , which accounted for almost five percent of U.S. music sales in 2005. The model is simple. One can buy individual songs for $0.99 or a discounted album for $9.99. The buyer’s right to share the music, without violating the record label’s copyright, is guaranteed using what is known as Digital Rights Management (DRM) software. The buyer of the music can authorize up to three other users the right to access the music. However, they have to be using the iTunes software application. This is one of the problems in regards to the protectionism issue.

One main reason that the demand for digital music increased so dramatically was the increased proliferation of MP3 players. This device is the next step in the evolution of the Walkman, and was a catalyst to push the music industry towards the digital distribution of music. However, it wasn’t until a DRM-enabled MP3 suite was developed that the music industry was willing to open its vast catalogues of music to digital distribution. If an anti-trust case were to be brought against Apple Computer, then the first challenge would be the required bundling of the iTunes Music Store with the iPod MP3 player. When Apple CEO Steve Jobs was asked what he thought about this bundling arrangement he responded, “Well, [the consumers] knew that all along”, and then went on to say that “[n]obody’s ever demanded [interoperability]”. Is it not an anti-trust issue because consumers are willingly entering into a tie-in sale? Job’s second claim of a lack of demand for interoperability also isn’t true as demonstrated by Microsoft’s attempt to integrate the iPod with their Xbox 360 console. Microsoft, and consumer groups in general, are asking shouldn’t the owner of the media be able to use it within their distribution rights? The bigger question that must then be asked is with the iTunes Music Store holding 70% market share , and the bundling of the portability of the music with the iPod, is the consumer harmed by the business practices of Apple Computer and the music industry?

To analyze the issue of tie-in sales, it’s best to go through the characteristics of a tie-in sale and see if they apply to this case. The four characteristics of a tie-in sale are (1) some monopoly power in the tying good, (2) not insubstantial commerce in the tied good, (3) no efficiency defense, and (4) two distinct goods.

First, is there a monopoly in the tying good? Yes. There is significant market share owned by Apple in both the digital music distribution market, and the MP3 player market as shown earlier in the paper. However, one must ask whether this is a first to market advantage or not. As Demsetz argues, innovation creates concentration, profits, and perhaps some monopoly power. Apple’s iPod was by no means the first to market, but its innovative user interface coupled with its ease of use and large storage capabilities made it an innovation in the market. This innovation was enough to give the iPod a peak market share of 92%. Though this number is slowly eroding, there is still yet to be a dominant competitor on the market. Newly emerging Zune has received quite good reviews, and claims to be the next step in the social networking revolution that has helped fuel Web 2.0, but the results are yet to be seen. The competition is a bit stronger in the digital media distribution arena, but the iTunes Music Store still has a significant market share. Therefore, the first piece of a tie-in case could successfully be built.

The next piece of the puzzle comes down to whether there is enough commerce to make this product a matter of concern. It can easily be shown that this is the case. In 2005, the iTunes Music Store become one of the top ten retailers of music. It was able to amass approximately $450 million in sales making it 4-5% of the total music distribution in the United States. In the fiscal year ending in September 2006, 40 million iPods were sold , and the variety of models has made iPod Apple’s dominant revenue stream. This amounts to as much as $565 Million in quarterly revenue of which a significant portion, whether directly or indirectly, is expected to be iPod generated.

The argument against efficiency is difficult to construct in this case. In general, the courts have had a tough time deciphering how an efficiency defense can best be presented , and here too it seems a difficult proposition to see if somehow the combination of the iPod and iTunes Music Store has decreased efficiency. This could be the stickler in building a complete case against the bundling of these two technologies. I think that the economics of it are quite simple. By having a simple to use interface that maximizes the experience and minimizes the time spent configuring, the iPod/iTunes combination maximizes its own utility. This is one of the strongest arguments for continuing this relationship even though it has some semblance of an anti-competitive role in the marketplace.

The final requirement is that there are two distinct products. This isn’t a buttons and shirt situation. There are in fact two very distinct products. The iPod has become a video and photo device, and can also become an external hard drive. iTunes Music Store has music, podcasts, movies, television shows, audiobooks, and all sorts of digital media. However, one problem that does arise is that the iPod can only be conventionally used through the iTunes Music Store. The ability to access and take advantage of data stored on the iPod is also severely limited. Therefore, it might be argued, that in conventional terms the iPod cannot live outside of the iTunes Music Store. I don’t think that this means they are the same product, or two products that necessarily need each other. It’s important to note that this relationship has been constructed for them by Apple’s business strategy, and that they can, and do, survive as separate entities.

Overall, I think that there is a strong case that the iPod exclusively working with the iTunes Music Store could be a tie-in sale case. There is a significant market for the products, and the market share of both products is significant. Both exist independently of each other, but iPods depend on iTunes to work out of the box. Though this creates a shirt/buttons relationship, I would argue that their product lines can exist independently and therefore they should as well. Apple’s business decision to create this dependency doesn’t excuse the tie-in like nature. My only concern is that I wonder how making the price of the iTunes Music Store free affects the construction of a case, but otherwise find the totality of the case to point towards some degree of anti-competitive behavior.

Tomorrow I will post my research on the DRM side of things, and conclude this issue at large.

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