The other day, Apple’s Steve Jobs called on the four major record companies to start selling songs without digital rights management. “If such requirements were removed, the music industry might experience an influx of new companies willing to invest in innovative new stores and players. This can only be seen as a positive by the music companies…” and certainly a positive to Apple…who holds the market share.

Apple has been under pressure in Europe to make iTunes music compatible with players other than the iPod. Jobs suggested that the problem is not Apple, but the record companies it gets the music from. The songs sold are protected by Apple’s proprietary Fairplay software, which only works with iTunes and the iPod.

The Recording Industry Association of America(RIAA), who represents the record companies, suggested more DRM…suggesting they should license their technology to rivals. Analysts blame the software industry for its unwillingness to participate in creating an open and industrywide standard.

The overall idea behind Jobs recommendation is that piracy protection doesn’t work…and thus…if the industry accepts a certain level of piracy…then it will get greater profits from legitimate consumers. The idea works with CDs. Anyone can copy a CD and rip its music…then distribute it with a little bit of work.