DRM conf, Friday morning, session 1
Will decrypt asap. For now, raw notes…
DRM, session 2
DRM as an enabler of business models
- Carl Shapiro, Haas School of Business, UC Berkeley (moderator)
- David Reed, Cable Labs
- Allan Adler, Association of American Publishers
- Bob Blakley, IBM Corp.
- Donald M. Whiteside, Intel Corp.
- Cary Sherman, Recording Industry Association of America
- Lon Sobel, Entertainment Law Reporter (paper on ISPs as digital retailers)
- Sarah Deutsch, Verizon Communications
Panel 1: Gary (Hass) intros
Lon: distribution-based copyright scheme, royalty rates set by copyright owners, watermarked w/ info about who’s to be paid, etc. If stripped of watermark, use fingerprints. ISPs compute and collect/distribute fees. Motivations: get copyright owners paid, keep gov out of legislating manner of tech design. Would allow P2P w/out concern for legislation. Last session’s Hollings bill would have required mfgrs to build DRM in to technology; current session FCC’s broadcast flag bill is very similar. Business model: ISPs mark up copyright fees? Also retail stores that distribute (examples: bookstores, record stores mark up 100%, etc.) Darknet; Microsoft? Would hammer hardware lifespan if DRM were in technology. Would increase value of broadband. Problems include copyrighted spam, would require ISPs to know exactly what we’re doing (invasion of privacy) but get over it, this is 2003, credit card companies know where you are, this is incrimental; see his paper.
Don Whiteside, Intel: exploring new biz models for digital media. Internet changes everything: internet is one of multitude of disruptive techs… panel about disrupting/creating business models: how consumers use media. Consumers don’t know what fair use, but know what customary use is about: I can therefore I should be able to. Societal ethics and morality evolves separate from law. DRM as biz enabler: strategic inflection point created by disrupting; common element as to which path. Shareholders, distribution partners, customers are elements. Recording and movie studios trying to keep life in existing model; but choice is available. Small, nimble companies will, incumbents should explore their relationship with customers. Won’t happen overnight, but incumbents may lose their consumers. Role of DRM: protection mechanism (to protect existing biz models), but tech companies don’t view their work this way; new control and choices enabled by DRM. Cross industry efforts trying to develop solutions.
Carey Sherman, RIAA: need to continue selling Cds (can’t ‘just stop selling them, can’t just encrypt or market would disappear. Need new players, will take time. Format wars in evolving technology, online is tiny market, consumers think the music should be free. Uncontrolled file sharing, CD burning (giving away and selling) which has collateral effect of street piracy around the world and burners included in new tech, burning replaces purchases. Double-digit decline, complicated rights situation, but they’re only one part of a web of rights holders, all parties need to buy into schemes. No one attitude among companies, most widely held: consumers should be able to copy, can’t give away or sell copies (commercial expectations). Strategies: companies are pursuing multiple, concurrent approaches: get online w/ as many distribution models as possible. Obstacles: PressPlay (req’d subscription), improving steadily. Identifiers, messagers, to facilitate copyright enforcement. Fair use balanced w/ distribution; vendors keep improving but not good enough for commercial release. Pre-compressed files for computers but can’t use on Cds, but need to have compliant devices to prevent piracy. Personal use copies allowed but can’t protect against burning the burned. Add value: bonus tracks, free DVD w/ CD, concert tix, merchandise, other pricing strategies. Make P2P systems less attractive (spoofing). Incentives to companies (ISPs) to prohibit downloading & dis-incentivize P2P. Education, enforcement against consumers. Industry transitioning concurrently w/ artists & customers, lot of moving parts.
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