Yes, but I suspect that Apple will not want to open up FairPlay, as there's no real way to contain the licensing just to France. (And in fact, some of the councilmen who passed the law are promising to try to push this law to the EU.) That's the real problem. So, instead, I think Apple will either try to fight it in court or quickly shut down iTMS for France (or try to work out some kind of compromise if at all possible).
And no, iTunes allowing users to burn unprotected CDs won't satisfy the French law. It explicitly commands that DRM'd files must work with any DA player.
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