Would you care to explain how Apple or anyone for that matter would be able to determine if a track was ripped from a CD or downloaded legally or illegally?
You're gonna have to explain this to everyone.
Very simple. Checksums, both of the whole file, and also parts of it to make sure that adding/editing characters doesn't invalidate the checksum. There's also the tags added by the person/group who ripped the cd, and very simply, the filename.
Would this find every illegal copy? No. Would it find a lot of them, and most likely a huge majority? Yes.
Because most people who want to match their illegally downloaded songs won't spend the time to make sure that their illegal files can't be identified.
I think that the Music industry has finally come around to the obvious conclusion that they can't do anything to stop people downloading music illegally. Apple is paying them a butt-load of money to enable this service. I'm sure one of the big arguments that Apple made during negotiations was that you will now be able to get some income from those songs that are part of our user's libraries.
That's not a butt-load of money. Do you know how much money the music industry is getting from proper sales on iTunes? That's a butt-load of money.
I highly doubt that Apple made the argument that they would get 70% of $25 for 25,000 illegally downloaded songs. (And that's what the record company would get from Apple, what the artist would get....) BTW, that might be as little as $0.0007 per song and year... Compare that with the $0.69 or so for a song sold on iTunes. That's 985 times as much.
But if anyone actually can prove that Apple actually made the argument, I'd love to see it.
Back on topic, though, beyond upgrading all your songs, I just don't see the point of this. ATM, I've got 20 gigs of my music on my phone. I hit shuffle and I'm listening all day. Why would I not want music actually on my phone again? No data plan on earth is going to allow for streaming my own stuff back to me all day.
If you stream while on WiFi and store songs for off-line listening, just like you can do with Spotify, then this wouldn't be a problem for your data plan.
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I'd love to know why people would allow Apple to be able identify their files for matching but not to identify any illegal files. If their files are all legal, then what's the problem?
(This isn't the security camera in your home argument, it's the security camera in your home that doesn't report anything illegal you're doing argument...)