Microsoft is in the middle of a lawsuit that is forcing them to expose some rather embarrassing internal communiques. Here is the story from AllThingsD that provides some additional links. Below is one particularly interesting discussion Bill Gates has regarding iTunes.

—– Original Message —–
From: Bill Gates
Sent: Wed 4/30/2003 10:46 PM
To: Amir Majidimehr; Dave Fester
Cc: Will Poole; Christopher Payne; Yusuf Mehdi; David Cole; Hank Vigil

Subject: Apple’s Jobs again.., and time to have a great Windows download service…

Steve Jobs ability to focus in on a few things that count, get people who get user interface right and market things as revolutionary are amazing things. This time somehow he has applied his talents in getting a better Licensing deal than anyone else has gotten for music.

This is very strange to me. The music companies own operations offer a service that is truly unfriendly to the user and has been reviewed that way consistently. Somehow they decide to give Apple the ability to do something pretty good.

I remember discussing EMusic and us saying that model was better than subscription because you would know what you are getting. With the subscription who can promise you that the cool new stuff you want (or old stuff) will be there?

I am not saying this strangeness means we messed up – at least if we did so did Real and Pressplay and Musicnet and basically everyone else.

Now that Jobs has done it we need to move fast to get something where the UI and Rights are as good. I am not sure whether we should do this through one of these JVs or not. I am not sure what the problems are. However I think we need some plan to prove that even though Jobs has us a bit flat footed again we move quick and both match and do stuff better. I’m sure people have a lot of thoughts on this. If the plan is clear no meeting is needed. I want to make sure we are coordinated between Windows DMD, MSN and other groups.

…. Original Message ….
From: Jim Allchin
Sent: Wednesday, April 30, 2003 4:58 PM
To: Amir Majidimehr; Chris Jones (WINDOWS); Will Poole; David Cole

Subject: Apple’s music store

1. How did they get the music companies to go along?
2. We were smoked.

jim

It feels like I find a new story every day about a content provider trying new ways to add charges to it’s customers. Newspapers across the country are discussing charging for the “privilege” of reading their content online. Hollywood and the recording industry continue to dream up new ways to lock down the music and movies we buy. Software makers put more and more draconian restrictions into their EULA’s (End User License Agreement).

We typically look toward the government to protect us from such anti-competitive, monopolistic measures. However, they seem to be asleep at the wheel. Or worse, they’re in agreement with the lobbyists. I voted for Barack Obama despite my misgivings about Joe Biden’s cozy relationship with the RIAA. I felt Obama stood for fairness. I still feel that, somewhat. But it doesn’t seem he is really putting his weight toward these issues. In fairness to him, there is a lot going on in the country right now. However, if the government doesn’t pay attention, then we are likely to lose much of our digital rights.

Why has common sense and fairness been thrown out the window? Why is it okay for content providers to use their money and attorneys to intimidate the public through lawsuits? Why is our privacy being threatened in the name of combating a perceived problem of piracy? I want answers to these questions. And don’t give me the typical corporate crap. I want real, bottom line answers. I want fair use to be respected. And by fair use, I don’t mean doing anything I want. I do think I should be able to use my legally purchased content on any device I own.

Congress enjoys puffing its chest out in faux indignation when an athlete is caught using performance-enhancing drugs. Where is the indignation when a grandmother who doesn’t own a computer gets sued for illegal downloads? Where is the anger when our courts are used as a tool for the RIAA to enforce its form of justice?

I am angry, and I am tired of feeling like no one is looking out for the average person. Please read up on these issues. Ask questions. Make up your own mind.