There is speculation this morning as to whether legal action will follow Real Networks launch of Harmony. As previously reported, Real's new Harmony technology hopes to overcome the problem that consumers are limited to certain download platforms depending on which digital music player they buy. Harmony will be able to output files as almost any 'file format' (or 'codec') meaning, for example, iPod owners will be able to buy tracks from other download platforms than Apple's own iTunes.
It is that last point that might cause Real some legal problems. Real boss Rob Glaiser approached Apple proposing an alliance against Microsoft's movements in the music space earlier this year. Apple declined the offer to collaborate. However Real decided to continue to include Apple's codec in their development of Harmony, using an unofficial version of their AAC file format. There was speculation yesterday to how Apple might respond to that decision. However Glaiser did not seem too concerned by Apple's possible response. He told reporters: "We have excellent lawyers and they assure me that we are 100% within all of the legal precedents and the letter and spirit of all laws".
There is split opinion on Real's legal position, although some point out that Harmony essentially makes the iPod even more user friendly and may well boost sales even more. Given that Apple's business plan is based more on hardware sales that making any profits selling downloads through iTunes, insiders say it would be mad for Apple to take action against Harmony, even though Real have used an unauthorised version of Apple's codec.