In the amended version of the bill, French senators have backtracked to some extent from the the initial bill passed by the National Assembly, France's lower house, in March.

The newly amended bill, which might provide Apple and other music companies with somewhat of a loophole, now will head to committee where legislators will attempt to iron out the final details.

Limitations and Loopholes

French consumer groups and members of the government in France have said that their goal with the bill is to protect consumers and give them the option of listening to purchased music on any device they choose.

While Apple's iTunes seems to be the target of the legislation, several other online music companies that use DRM technology could be affected by the law. These companies include Sony, Microsoft , Vivendi, and Audible.com, an e-book retailer.

Apple equated the first version of the law to "state-sponsored piracy," saying that "legal music sales will plummet just when legitimate alternatives to piracy are winning over customers." The iPod-maker has not commented on the amended version of the legislation.

If the amended bill passes, the French government will create a regulatory authority that will oversee issues related to digital copyrights. A loophole in the amended legislation might offer Apple and others a way around some of the restrictions, allowing them to continue to operate without sharing their DRM technology.

For example, if the companies could prove to the regulatory authority that their technology protects the copyright of musicians and music labels, the agency would then make a determination, ruling that the companies could maintain their DRM.

Bureaucratic Interference

Michael McGuire, an analyst at Gartner, said it is likely the new agency would only serve to create an extra level of confusion for everyone. According to McGuire, the law goes against the idea of digital distribution in general and the benefits that model imparts to consumers and music companies alike.

The notion of interoperability is useful, he said, but digital music technology is still so young that any government interference could harm it.

"I have yet to find a government bureaucracy that has a perfect or absolute fool-proof gauge of what is and is not important to the public," McGuire said.