Impacts of DRMs on innovation, competition, & security
- Hal Varian, SIMS, UC Berkeley (moderator)
- David Farber, Computer Science, University of Pennsylvania
- John Manferdelli, Microsoft Corp.
- Lucky Green, cypherpunks.to
- Alex Alben, RealNetworks, Inc.
John: Not one-size fits all. Rights live in the file: persistent protection, share assets in different settings. DRM, Enterprise Rights Management, Personal rights mgmt, Privacy rights mgmt. Different use and attack models. Enterprise doesn’t have mass market concerns. All have in common: not to restrict what people can use computers for: can’t impose policy (DRM changes w/ time and application), opt-in & user control, widespread permissions w/ negotiated equilibrium (including privacy models)). Misconceptions: don’t censor or disable w/out permission, don’t lock out vendors or formats, user control, noone owns machine key, won’t be perfect. Interoperable. Enemy of good security is demand. Tech providers don’t know policy directions.
Lucky Green: Trusted computing & using DRM to stifle competition. Why should you trust entitles that may not trust you? Fall 2000 received invite to Trusted COmputing Platform. offering Secure Boot (to know what OS, under OS, compromising hardware? not building DRM system. Our OS platform doesn’t have all that our customer demands (streaming media), must have DRM to deploy. Hardware and software-based, conspiring to keep customers in the dark. Assuring that your computer will disobey your wishes and obey whatever DRM system it’s instructed or enabled to. Keeps people from competing with each other. Plugging “analog” hole: feeding speaker back into computer, one of several trends; prevents use of unlicensed software, PC as core of home entertainment, new market opportunities in gov sector also among trends. Upcoming hard/software DRM in office productivity: “We came at this thinking about music, but then we realized that email and docs were far more interesting domains.” (Bill Gates) “You could create Word docs that could be read only in the next week.” (Steven Levy, MSNBC) How does the law help TC stifle competition? automated agreement in restraint of trade? Vendors say it’s an illegal circumvention device. (Question: What would fed prosecutor call…) Consequences of uniquitous, Don’t create interoperable software or spend time in prison. DRM is voluntary-? on by default (Palladium), use of gas in a car is similarly optional.
Dave Farber: marvellous religions war, no articulation about real capabilities and limitations. Stop having religious discussions. DRM is not new, generally thought of as software, easy to break. Some now have hardware, multix had protection of documents. Discussions, SecureBoot not in new stuff. ARPAnet was not designed to survive a nuclear attack. FCC: get out of spectrum and other regulatory roles where it’s messed things up. Security (lack of perfect) at acceptible levels is important for individuals, corporations, nations. Relevantly secure system difficult to keep DRM out, esp if you don’t have boot privileges (in computer environment). Essentially saying you can’t build or market if not perfect, bad trade off. Interested in preventing access to his personal info, should have worn his TIA t-shirt. DRM has important role in protecting his info. Mechanismis to enable him, will eventually have to be decided by legislature, courts, marketplace. “Disney problem” (not speaking for FCC): terrible tendency to listen to people w/ inferior solutions (how good? pretty good.) Causes a conflict to engage FBI to track, unwillingness of media companies to pay for protection (distressing). Is far from convinced about fair use that can’t have a reasonable, rational balance that gives different forms of fair use and still have rights management systems. Not encouraging DRM, but can happen. Need research, articulation as to what can be found.
Hal Varian: What are the available biz models: Advertise yourself, advertise other stuff, bundle, subscription/versioning/non-linear pricing, low prices and high quality for authentic version, micropayment, DRM. Choosing rights: seller should choose bundle of rights to max value or product, more rights implies more value but perhaps fewer sales, tradeoff (video rentals, DVD sales, library and book purchases, etc). (new techno-threat evolves into mass market.) Home copying: maximizing value models for different places or settings vs. one copyable price (may lose value to sharing, small value); change numbers and variables w/in model for different results. Crippleware not the best answer: reduces value. Competition can compete away copy protection (early Lotus 123). Innovation: 3 types of protection: non-refillable ink carts, cell phones w/ certain batteries, CDs don’t allow ripping. 3 types of innovation: printing integrated circuits, generator in a shoe, Elvis remix at world cup,”too much conversation” in Nike ad. Customers may want to use products in innovative ways. (See VonHipple paper at MIT)
Question: double edge sword technology, but also double-ended; doesn’t want to be at mercy while gov holds one end and he’s responsbile for other end. Farber: you can always buy a mac.
Alex Alben, Real Networks: Property class: bundle of sticks (rights), can be parsed by time, number of plays, ID of user, location, type of device… expectations may not apply. Does enhancing value of rights necessarily diminish personal use rights? “We need to maintain both personal use and copy protection in order to create a marketplace that works. CD’s life: assume 10 years, 7.5 cents per month (didn’t follow his math.) Roles and responsibilities of key actors; content owners: release product & create licensing, consumers: use products consistent w/ personal use. Tech companies: enable new business models, make DRM transparent. Gov: don’t regulate, don’t madate, don’t choose winners. Thinkers: create intellectual framework for new paradigms of digital distribution. Giving CDs away is not legal personal use, must disabuse consumers. Challenges: crafting a fair use exemption, limiting application of DMCA to protect media, not garage door owners or print cartridges (injunction issued in Lexmark case). Travesty! Broadcast flag: RN supports, News & local should not be marked, fair use w/in broadly defined “home net” must be allowed, no limits on physical copies, gov regulation aka Hollings approach is not good idea (“thin edge of wedge”) Reasonable rules required, as industry. DRM is here, abstract concept, can be used for good or ill, need to craft best balance.
Questions from panelists to each other JM: technology should be out of the way. Lucky: most rational consumers believe that uses DMCA has been put were not in scope at time legislation was passed. however as DRM is being pushed will agree, cell batteries programmed to charge less each time, proprietary batteries (Alex: recharge your shoes), courts believe that DRM is legitimate: unless law is changed, careful what you ask for. Farber: need language for policy to accept or reject. Get rid of consumer (the term). Shoes will be confiscated at airport.
Questions from audience: Engineer: values assumed in panel have vastly inflated values, budget for billing and DRM doesn’t exist. RN: forward-investing, subscription in 30-day increments. Dierdre M: concern for locking down characteristics, rights expression language and vertical integreation, how will consumers have a voice? no competition really. Alex: standards bodies, costs to join, not open to press but should be (CPTWG). Don’t want to put this in hands of politicians. Companies’ solutions and standards not always appropriate. Hal: competition is for attention. People will look elsewhere, threat to incumbents. Hal Abelson, MIT to John: will XrML be available on royalty-free basis (MS doen’t own it), reasonable and non-discriminatory terms? MS is backing a standard that is not necessarily royalty free. Pam Samuelson: patents on DRM technologies (intertrust, content guard), competition and innovation (Intertrust bought by Sony/Phillips), as to open source developers or smaller players? Dave F: interesting battles, big problems, lots of patents aren’t worth paper they’re written on. More than two with patents, old tech as prior art. John M: intertrust/MS being sued, can’t talk about that, Doesn’t think Content guard is in suit, publishers will decide but it’s gotta settle down first. MS is minority share in Content guard. Don’t know what else to say, will muddle through. Lucky G: patents intended to prevent competitors competing. Underlying tech, open source generally works on open licensing models, not compatible. Patent comes to mind: Palladium (now called something else), MS has stated developers could use but no public stmt as to open licensing to open source model. John M: technology is not based solely on that patent, MS has not announced any licensing offers. From floor: questions related to trusted computing, wrapping data objects, unavailable to competitors, increase security level but tension between policies and strength… what’s going on? Lucky: mumbled. from floor: why didn’t Lucky ask why no interop w/ RN servers? Alex: investments in server, ads, controls, siphoning off by others. from floor: HDTV & RN? concern for legacy devices, broadcast digital signal, narrow concerns, failure by FCC, intervention/disruption by Internet, Tauzin’s concern for broadcast flag, but no longer in time w/ consumer demands. Farber: more complicated than that. What they wanted was digital TV, broadcast industry would use it for something else.
Content, Events, Policy DRM, patents, privacy, regulations, rights management, security, trust