April 2 (Bloomberg) -- EMI Group Plc, the world's third- largest music label, will sell songs without copyright protection software through Apple Inc.'s iTunes online store.

Music already sold online will be offered without digital- rights management, or DRM, software, EMI said today in a statement. That excludes songs in EMI's catalog that haven't yet been licensed for online sale, including music by the Beatles.

Apple Chief Executive Officer Steve Jobs in February asked EMI, Universal Music Group, Sony BMG Music Entertainment and Warner Music Group Corp. to let Apple remove DRM software from online music. While the software helps prevent illegal copying, it doesn't let customers move songs among devices, he said. The labels control more than 70 percent of the world's music.

``This will put pressure on the other record labels to open up and go DRM-free,'' said Michael Goodman, an analyst at Boston- based research firm Yankee Group. ``The assumption is that sales will increase. Apple will be banging on the heads of other record labels to go DRM-free.''

Shares of London-based EMI rose 0.3 percent to 228.25 pence. Shares of Cupertino, California-based Apple gained 74 cents to $93.65 at 4 p.m. New York time on the Nasdaq Stock Market.

``Customers are going to love this,'' Jobs said today at a press meeting at EMI's headquarters. ``It's an opportunity for everyone to win, customers and the record companies.''

Major Hurdle

Songs purchased on iTunes only play on Apple's iPod, while music bought from rival sites is tied to gadgets that work with their DRM systems, Jobs, 52, said in a Feb. 6 essay posted on the Apple site.

EMI said at the time it recognized the lack of flexibility between music players was ``increasingly becoming an issue for music consumers.''

``We expect sales to grow as a result of this and hope digital growth will outstrip the decline in physical sales,'' EMI CEO Eric Nicoli said at the news conference. He said EMI is ``on track'' to have 25 percent of sales in digital format by 2010.

Starting in May, Apple will offer EMI songs without DRM software and with better quality sound for $1.29, 1.29 euros or 99 pence. Consumers will have the option to buy songs with DRM software at 99 cents, 99 euro cents or 79 pence. Full higher- quality albums without DRM software will be sold at the previous price.

Apple will let customers buy upgrades for songs already purchased in the old format.

``Apple is our first partner in this initiative,'' Adam Grossberg, a spokesman for EMI, said in an interview. ``We do intend to make this available to other partners.''

DRM `Cornerstone'

Universal, Sony BMG and Warner have all experimented with selling unprotected tracks online.

Universal, the world's largest music company, declined to comment on whether it has had talks with Apple and online retailers about offering its music without copy protection, said spokesman Peter LoFrumento. Sony BMG Music, the second-largest label, also declined to comment, said spokesman John McKay. Universal is owned by Vivendi SA. Sony BMG is a joint venture of Bertelsmann AG and Sony Corp.

Warner spokesman Will Tanous said the company, the fourth- largest music label, had no comment. He referred to Warner CEO Edgar Bronfman's remarks after Jobs's released his DRM essay.

``There is no logical reason to abandon DRM nor to disadvantage services that are successfully implementing DRM,'' Bronfman said during the company's Feb. 8 first-quarter earnings call. ``If, as we believe, the future is a digital one, then DRM is the cornerstone of that digital future.''

The Beatles

Through iTunes, which operates in 22 countries and carries 5 million tracks, Apple has sold more than 2 billion songs since starting in 2003. The service has more than 70 percent of the market for music downloads, said researcher NPD in Port Washington, New York.

Allowing iTunes tracks to be played on devices other than the iPod shouldn't hurt Apple's sales, said Gene Munster, an analyst with Piper Jaffray Cos. in Minneapolis. Sales of the iPod and music, movies and videos sold through iTunes accounted for 57 percent of Apple's revenue in the quarter ended Dec. 30.

``DRM free music should result in more usage of digital devices,'' Munster said in a note today. He rates Apple's shares ``outperform'' and said he doesn't own them. ``The impact of increased iTunes downloads will outweigh the impact of some customers using non-iPod players with iTunes downloads.''

Some analysts were anticipating an announcement today involving the Beatles. EMI distributes the Beatles' music.

Speculation about their music being made available for the first time in digital form increased since Apple Corps Ltd., owned by Paul McCartney, Ringo Starr, John Lennon's widow Yoko Ono and the estate of George Harrison, ended a long-running legal dispute with Apple Inc. over use of the Apple name in February.

Not Digital Yet

The Beatles' catalog, which includes hits such as ``Let It Be'' and ``Yesterday,'' isn't legally distributed on the Internet. Songs by the Beatles, who led the ``British invasion'' of U.S. music charts in the 1960s, are among the most frequently downloaded illegally, according to NPD.

When asked at the press conference when Beatles' songs will be available digitally, Jobs said: ``I want to know that too.''

``We're working on it and we hope it's soon,'' Nicoli said.

EMI has the rights to distribute the group's recordings on CDs and other physical formats. Apple Corps hasn't granted digital rights yet to their songs.

To contact the reporter on this story: Alex Armitage in London at aarmitage@bloomberg.net; Mark Herlihy in London at Mherlihy1@bloomberg.net.

Last Updated: April 2, 2007 16:17 EDT