So far, France is having quite a tough time deciding on what to allow or prohibit in its proposed version of the EUCD.  An earlier amendment in France aimed at legalising the use of file sharing networks has already been held back due to fierce opposal by the entertainment industries.  Under the current draft law, anyone who sells or develops software for illegal file-sharing and downloading would be subject to penalties, including a maximum fine of €300,000 along with up to 3 years in jail.  Any consumer caught downloading or sharing copyrighted material illegally would be subject to a €38 or €150 fine respectively.

Despite the fairly tough penalties for illegal file sharing, this law aims to abolish DRM copy protection systems to allow consumers to legally use software to get around copy protected content restrictions to play this on their portable hardware.  For example, those who purchase iTunes music would no longer be forced into using an iPod to play their music and would be freely entitled to convert the music to any format that suits their needs.  On the other hand, if this law goes into effect, it could push Apple out of France as they could no longer restrict iTunes customers from redistributing their music due to the lack of restrictions. 

According to Vanneste, this draft law aims to help fight piracy and encourage digital music services.  Last year, France's physical media sales of music fell by 8%, yet their digital music sales rose fivefold.  By doing away with DRM restrictions and relying on the law to punish those who illegally redistribute copyrighted content means that consumers are more likely to choose legal services without worrying about the dreaded DRM restrictions in place or hardware compatibility.  Finally, the law aims to allow consumers to make a limited number private copies copies of their purchased content.

Source: Yahoo Technology News