Bruce Willis might be suing Apple UPDATE: But he isn't.

The actor apparently wants to leave his iTunes collection to his four daughters.

The Daily Mail reports the Bruce Willis – he of Die Hard, Pulp Fiction, and, of course, "worst picture of the decade" nominated mega-flop Hudson Hawk fame – is said to be considering legal action against Apple, in order to be able to leave his iTunes collection to his daughters.

Neil Sears writes:

If he succeeds, he could benefit not just himself and his family but the millions who have purchased songs from Apple’s iTunes Store.

Willis has discovered that, like anyone who has bought music online, he does not actually own the tracks but is instead ‘borrowing’ them under a licence.

Most purchasers do not bother to read the details of the terms and conditions they agree to when buying an album but the small print makes it clear that music bought through iTunes should not be passed on to others.

At the risk of being wrong: Willis is not going to win this one.

European courts have been increasingly active in ruling that "first sale doctrine" – which states that exclusive rights to distribution are exhausted after the first sale – holds for digital goods, since a right to use a good for an unlimited period of time, when exchanged for money, is legally indistinguishable from a sale. This was most recently demonstrated when the ECJ declared in July that consumers have a right to resell downloaded software as "used".

US courts, on the other hand, have been far more inclined to treat the licenses under which digital goods are sold as legally enforceable contracts. So, for instance, MDY v Blizzard, a case in which Blizzard Entertainment, the developer of World of Warcraft, sued a manufacturer of cheating software, was found in Blizzard's favour in part because it was held that users are merely licensees, not owners, of the World of Warcraft software.

For Willis to win, he would most likely have to get the contract declared unenforceable, which would have far more wide-ranging effects than merely letting him pass music on to his daughters. For one, it would open the door to used sales of digital media, but it would also severely limit the ability of businesses to control how their digital goods are used. Whether this is a good thing or not depends on whether those businesses then change their offerings. But, as one example, would Adobe continue to sell student editions of their software if first sale doctrine allowed those students to resell the software at will?

Update

We should have known it was too good to be true. The Guardian's Charles Arthur reports that Willis' wife has denied the story, and that the Mail's reporting of it was most likely an uncredited lift from the Sunday Times. But where did the story come from? Arthur writes:

There's an article from Marketwatch, from 23 August, which bears an odd resemblance - but it has no mention of legal challenge. It's all talk about Estates and Wills.

Which brings us to a horrible pause: might it be that someone saw a mention of "Estates and Wills" and thought it was "estates and Willis"?

Erk.

Bruce Willis when he's not suing Apple. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR