The mentioned method is already used by many iTunes customers regardless of whether it might be legal or not in the users' territory. As an official change of policy from Apple however, this could only serve as a temporary solution and the organizations have suggested that the company devise another solution and that development takes place by September 2007.
iTunes must also change its contract terms, losing the right to modify rules for using the service unilaterally. The company cannot modify existing contracts whenever and however it wants. iTunes must also change its terms so that the risk of damage to music files or of damage caused by them is divided more fairly between the company and the customer.
The group also demands that customers have the right to be covered by the legislation of their own country, calling attention to iTunes' contention that British law applies to sales.
Source:
Press Release