• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Exclusive

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

Apple

Re-thinking Steve Jobs’ Thoughts on Music, 8 years later

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
December 14, 2014, 11:23 AM ET
Apple CEO Steve Jobs poses with the new iPhone 4 during the Apple Worldwide Developers Conference in San Francisco, California June 7, 2010. REUTERS/Robert Galbraith  (UNITED STATES - Tags: SCI TECH IMAGES OF THE DAY BUSINESS) - RTR2EVJN
Apple CEO Steve Jobs poses with the new iPhone 4 during the Apple Worldwide Developers Conference in San Francisco, California June 7, 2010. REUTERS/Robert Galbraith (UNITED STATES - Tags: SCI TECH IMAGES OF THE DAY BUSINESS) - RTR2EVJNPhotograph by Robert Galbraith — Reuters

Rod Schultz, a former Apple software engineer and the final witness in a federal trial scheduled to go to the jury Monday, has a provocative theory about one of Steve Jobs’ most famous and influential essays: Thoughts on Music.

When the essay was published in 2007 it was hailed as a bold call on the big four music labels to abandon the digital rights management (DRM) system Apple was using — in vain, according to Jobs — to protect their music from theft.

“DRMs haven’t worked,” Jobs wrote, “and may never work, to halt music piracy.”

He invited readers to…

Imagine a world where every online store sells DRM-free music encoded in open licensable formats. In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat.”

When EMI dropped DRM two months later and the rest of the labels slowly followed suit, it looked as if the music industry had finally given in, handing Steve Jobs — and some 8 million consumers — a victory in the music war on DRM.

Now those 8 million customers — or at least the lawyers who claim to represent them — want some of their money back. $350 million, to be precise, or more than a $1 billion with triple damages.

They argue that Apple’s “FairPlay” DRM software artificially — and illegally — raised the price of iPods by disabling competing music systems.

Schultz, who had a ring-side seat in all this, sees it differently.

While he was at Apple Schultz wrote one of the FairPlay modules that blocked songs sold on competitors’ music stores from playing on iTunes. That’s how he ended up on a witness stand in an Oakland federal court Friday.

According to Schultz, Jobs in 2007 could already see that the balance of power in the music industry had shifted. “Thoughts on Music,” Schultz maintains, was Jobs’ way of getting ahead of the parade. Jobs was, to mix a metaphor, like the rooster who crows in the dawn. In a 2012 academic paper titled The Many Faces of DRM Schultz speculates:

Maybe Steve Jobs was really trying to spin a pending decision by the music industry into a public perception victory for Apple.

“The music industry didn’t go DRM free because they hated DRM; they went DRM free because they were fearful of the leverage Apple was gaining with their iTunes + FairPlay + iPod combination. Apple’s DRM created this lock, and it became so successful that the music industry went with the lesser of two evils (songs locked to Apple’s iPod monopoly vs. the distribution of DRM-free music) and chose to distribute DRM-free music…

“Without DRM the iTunes store would never have been born. No music label would have licensed content to Apple, and the majority of the general public would not have purchased iTunes content that didn’t come from a major label. It was only after the service became mature and too powerful that the music labels changed the rules of the game and went DRM-free.”

That sounds right to me. As does the section of Schultz’ essay in which he suggests that history is repeating itself in Hollywood, in video-on-demand, on DVDs and Blu-Ray … wherever an investment in expensive content has to be protected long enough to make a profit.

Schultz writes about the architecture of advanced DRM systems with the clarity only someone who truly understands the subject can bring.

Apple objected to The Many Faces of DRM being introduced as evidence. Schultz, the company’s lawyers said, was just another guy on the Internet expressing his opinion. The plaintiffs fought to get it in, but not very hard.

That’s too bad. Schultz’ essay explains, better than anything I’ve read, what DRM is, how it works, and what business purpose it serves.

What the jury heard instead from Schultz sounded — at least according to the official court reporter’s first draft — like this:

THERE’S A KEYED HASH ON HERE THAT WE’RE USING SO THAT WE CAN CREATE A FINGERPRINT SO BUR FLOUTS YOU DIDN’T KNOW LYSES I HAD GISM BY AT THE GORE RISDZ IN A YOU CAN SEE IF YOU HAVE A KEY AND IT LOOKS LIKE THAT’S WHAT I WAS TEAMING DOINGED HERE IT’S BEEN A REALLY LONG TIME SINCE I’VE SEEN THIS DOCK”

Got that?

See also: How dumb is this Apple iPod antitrust suit? – new plaintiff update

Follow Philip Elmer-DeWitt on Twitter at @philiped. Read his Apple (AAPL) coverage at fortune.com/ped or subscribe via his RSS feed.

About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

charlie
CommentarySoftware
Anaplan CEO: AI isn’t eating software. It’s sorting it
By Charlie GottdienerMay 18, 2026
23 minutes ago
Wallet makers are the quiet backbone of the crypto industry. Now they want to be banks
NewslettersFortune Crypto
Wallet makers are the quiet backbone of the crypto industry. Now they want to be banks
By Jeff John RobertsMay 18, 2026
41 minutes ago
President Donald Trump speaks in front of the American flag to the press as he departs the White House on May 12, 2026 in Washington, DC.
EconomyPolitics
President Trump says the White House’s dealmaking era ends with him: ‘It’s not going to happen again’
By Eleanor PringleMay 18, 2026
1 hour ago
Carl Fritjofsson smiles in a blue t-shirt
Startups & VentureTerm Sheet
The AI boom is pulling Europe’s hottest startups to the U.S.—whether they planned to move or not
By Lily Mae LazarusMay 18, 2026
1 hour ago
Trump’s leadership model has a succession problem
C-SuiteNext to Lead
Trump’s leadership model has a succession problem
By Ruth UmohMay 18, 2026
2 hours ago
The top high-yield savings rates: Up to 5.00% on May 18, 2026
Personal FinanceSavings accounts
The top high-yield savings rates: Up to 5.00% on May 18, 2026
By Glen Luke FlanaganMay 18, 2026
2 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
2 days ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
Economy
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
18 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
6 days ago
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
Success
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
By Sydney LakeMay 17, 2026
1 day ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
2 days ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.