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I don't know what the laws say, nor do I are to look into them, but I've always had the opinion that companies such as Apple can do what they want with the software that *they* created. If they want OS X to run only on their hardware, then that is their decision. If they want iTunes to only interface with the iPod/iPhone, then so be it.
In this situation, why should Palm be allowed to "illegally" tie into iTunes, a piece of software which Apple has put countless resources into and numerous years developing? If I didn't like that, I'd use another multimedia software. If Palm really wants a media app like iTunes, they should invest their own (limited) resources developing one.