An announcement on the Yahoo Music blog offers a DRM-free version of the Jessica Simpson song "A Public Affair" for $1.99, which is about twice as much as most protected MP3 files go for at iTunes and other outlets.

Pressure Put on the Labels

Yahoo contends that the music labels already sell DRM-free CDs, and that digital rights management technology is expensive for digital music providers to implement. The company also notes that Emusic is among a collection of providers currently selling unprotected MP3 tunes from most studios aside from the major labels.

While the distribution of copyright-free MP3s over file-sharing networks is a common practice, the recording industry has gone to great lengths to protect its intellectual property from piracy. Apple's iTunes and other online stores typically limit the number of copies that can be made of their songs, and on what devices they can be played.

Ironically enough, the test song from Yahoo comes from Sony BMG, which drew fire last year following the discovery of cloaked rootkit technology in its DRM code for music CDs that was widely described as spyware and resulted in the company facing class action lawsuits.

Following the initial brouhaha, Sony released a patch to remove the rootkit and then agreed to a settlement in which buyers of the affected CDs were offered free music.

Strategic Move

While acknowledging that the record labels have a vested interest in protecting their content, Yankee Group analyst Andrew Jaquith noted that Apple, for one, already has a fairly generous DRM policy. "Most customers won't approach the limits they have on copying songs," he said.

The analyst said there are plenty of places to get unprotected music, and software tools to strip DRM encryption code. He suggested that Yahoo's DRM-free move is a tactic designed to drive some traffic toward its music site and away from iTunes, which dominates the market. "They have to be more aggressive to compete, and by offering no restrictions on their songs they are differentiating themselves from the pack."

That said, a response can be expected from the music industry, which sees such a strategy as in direct conflict with their business model, Jaquith added. "The difference between a CD and an MP3 file is that the bits in an MPS are very easy to reproduce and distribute."