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Proprietary Standards in Complementary Markets: Learning from Apple?

Title
Proprietary Standards in Complementary Markets: Learning from Apple?
Author
Kyle Cattani, Indiana University, and Hans Sebastian Heese, Indiana University
Date
9/26/2008
(Original Publish Date: 5/22/2006)
Abstract
In the summer of 2004, RealNetworks released software (ironically called “Harmony”) that allowed music buyers to purchase from Real’s online store music that played on Apple Computer’s music player, the iPod. Apple quickly expressed displeasure. “We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod,” the company declared in a press release. Apple further warned its customers that “when we update our iPod software from time to time it is highly likely that Real’s Harmony technology will cease to work with current and future iPods” (Macnewsworld 2004).
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