Apple Concedes to the French, iPod Developments in Asia May Be Questionable

Apple has France backing down after all: leading lawmakers have agreed to water down a draft law that could have threatened the future of the iPod in France, according to Associated Press reports.

The National Assembly had voted in March to force Apple Computer Inc. and other companies to make their music players and online stores compatible with rival players, but certain members now say they have agreed to weaker measures endorsed by senators.

But the compromise, due to be approved Thursday by a committee of legislators from both houses, maintains a Senate loophole allowing Apple and others to sidestep that requirement by striking new deals with record labels and artists.

“Christian Vanneste, the governing party deputy who presented the bill to the Assembly, said that a rival company’s right to market compatible products and services would ‘hang on the will of the copyright holder’ under the terms of the compromise.”

“It’s perfectly legitimate that the artist should decide the potential limitations on the use of his work,” he said.

Apple issued a response statement when the issue initially surfaced in March: “The French implementation of the EU Copyright Directive will result in state-sponsored piracy. If this happens, legal music sales will plummet just when legitimate alternatives to piracy are winning over customers. iPod sales will likely increase as users freely load their iPods with ‘interoperable’ music which cannot be adequately protected. Free movies for iPods should not be far behind in what will rapidly become a state-sponsored culture of piracy.”

Back then, Apple analysts did claim that the dynamic company would pull its product out of France. So far, Apple reps have declined to comment on the latest development.
Apple seems to be having additional woes overseas: EETimes reported that Apple Computer Inc. has responded to allegations that its iPod digital music players are made by the exploitation of Chinese workers.

A Reuters report quoted Steve Dowling, an Apple spokesman as saying, “Apple has begun a thorough audit of the manufacturing plant operated by Foxconn in Longhua, China.” Foxconn is the registered trade name for Hon Hai Precision Industry Co., Ltd. listed on the Taiwan Stock Exchange.

Apple’s response followed a London newspaper publishing an article on June 11 that alleged that workers were working 15 hours shifts and being paid as little as $50 per month. The audit will examine working and living conditions and compliance with rules on overtime and wages, the report quoted Dowling as saying. The report did not give any indication of how long Apple expected the audit to take.

“Apologists for the iPod sweatshops have cited Apple’s need to stay competitive and the fact that for many Chinese, the factories are the only work available. Many years ago, committed consumers faced down these arguments with the idea that Americans should be proud of what we buy. As Apple investigates, we need to hear those voices again,” according to the EE Times article.

However, Foxconn has added its voice to the controversy, saying the report is groundless.

“In Shenzhen, our workers can earn at least 580 yuan ($72.50) a month, which is the minimum salary level fixed by the local government. Starting from this July, the basic salary will be adjusted to 700 yuan ($87.50) in line with the government’s new standards,” James Lee, senior vice president of Foxconn Technology, told China Daily.

“It’s hard to understand for many westerners, but it’s true that many of our workers are willing to work overtime to make more money. We don’t force them to work overtime and won’t allow them to work overtime for more than 20 hours a week,” Lee said in the EETimes article.

The practices comply with the Electronic Industry Code of Conduct, which sets out basic labor and environmental standards for IT contractors, he explained.