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Napster is warning investors that the incompatibility of the tracks it sells with the new iPhone could hurt sales. (InfoWeek) It seems a weak excuse given that Napster’s real problem is incompatibility with 10 million iPods. Since Napster’s woes would be cure as more labels drop DRM; why isn’t the download service selling the million plus compatible mp3’s that are available from EMI and all of the indies?

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