© r. grimm, tu ilmenau, dec 2002 virtual goods 1 uwe muster hamburg security and business models...

© R. Grimm, TU Ilmenau, Dec 2002

Virtual Goods 1

Uwe MusterHamburg

Security and Business Models for Virtual Goods

ACM Multimedia Security Workshop6 December 2002

Juan le Pin, France

Prof. Dr. Rüdiger GrimmTU Ilmenau


Virtual Goods 2

Content

Virtual goods

Cost of digital goods

Busines models for virtual goods

IPMP / Lightweight model

Alternative „Potato“ model

Applications, challenges

References


Virtual Goods 3

Product value

Usage value

Cheaper for digital goods

Life cycle of goods

Creation – Production –

Reproduction – Distribution –

Consumption – Satisfaction


Virtual Goods 4

e.g., Music in the Internet: digital good

• Digital: one form of virtuality

• Special properties:

• Lossless separation from medium

• Re-binding to other media

• Repeatable by free choice of user


Virtual Goods 5

Production / Communication / Consumption of digital goods

011101000100101001111010010000100110

code(reduction)

transfer/storage(lossless)

011101000100101001111010010000100110

interpretation(enrichment


Virtual Goods 6

Cost

• Production of media is expensive• Sales of products is expensive• Investing into end-user devices is expensive

• Infrastructure of end-user devices is available• Infrastructure of communication is available

• Consumption of products is cheap• Communication of products is cheap• Reproduction of products is cheap


Virtual Goods 7

Degression of cost per-piece for virtual goods

Number of pieces sold

Cost per-piece=Product value/Euro

Final cost ofadditional piecealmost zero

Cost for total production

1 10 100 1.000 10.000 100.000 1 Mio. 10 Mio.

10.000

1000

100

10

1

0,1

0,01


Virtual Goods 8

Busines models for virtual goods

• Intellectual Property Management & Protection (IPMP)– Central control of usage by provider– Policy of rights– Restriction of users through policies– Technical basis (full IPMP): IPMP-Tools (control of users)– Technical basis (light-weight): signatures (traces)

• Friendly File-Sharing („Potato“)– Decentralizes sales model– Policy of provisions– Users are free to use, but they earn provision only if they pay– Technical basis: sales receipt (TAN in file name)


Virtual Goods 9

IPMP: CP-centric model

Content Provider

User executesrights of usage

Specifies rightsSells content

Controls usage





Virtual Goods 10

Critical comments on IPMP/DRM

1. Conflict between interest and enforcement

2. CP-centric view of policies

3. Burden of enforcement on the user equipment

4. Enforcement vs. identification of rights

5. Interoperability

6. Scalability

7. Privacy

8. Negotiation of policies


Virtual Goods 11

„LWDRM – light-weight model

• Re 4: enforcement vs. identification :• There is no unsigned content in clear in the

network• By consuming a file, its origin is verified• By distributing a file, it is signed• Method: signcryption (recoverable signature)


Virtual Goods 12

Role of content provider (BMG, Sony, ...)

specify / sell / control

Provider Trans-ferFiles

CDs

Authors / CreatorsAuthors / Creators


User / Consumer rights





Virtual Goods 13

Role of content provider (II)

Provider







Files

Napster


Virtual Goods 14

Role of content provider (III)

Provider







Napster

FilesGnutella

controls


Virtual Goods 15

Conflict of interests

• Users are interested in re-distribution• Users have power to re-distribute

• Providers are interested in re-distribution• Providers want money

• Solution ???:• Providers prevent users from re-distribution

- Pursue of users- Criminalization of users


Virtual Goods 16

Cooperation of interests

• Users are interested in re-distribution• Users have power to re-distribute

• Providers are interested in re-distribution• Providers want money

• Solution:• Providers support users to re-distribute• Users earn share of income (provision)


Virtual Goods 17

Fred creates content andGinnie buys content

Fred receives share as author

Fred adds TAN=21to file name

Fred offers his musicto many users

FredMusic Provider

Ginnylikes to listen to Fred‘s music

TAN=21

Fred registers MySong

Ginny p

rese

nts T

AN=21

and

pays

for t

he m

usic

TAN=53

MySong.mp3MySong4fo21.mp3 MySong4fo21.mp3

Ginny adds TAN=53to file name

MySong4fo53.mp3

Accounting Server


Virtual Goods 18

Content files are registered in (distributed) accounting centers

• Fred (composer, author) creates content file

(1) Fred registers content file at Accounting Service of Bill und recieves TAN (add to file name)

(2) Fred distributes his file in the Internet

(3) Ginnie receives file from anywhere (e.g., from Fred)


Virtual Goods 19

Payment = right to receive a provision

(3) Ginnie receives file from anywhere (e.g., from Fred)

(4) Ginnie pays for the file at Bill‘s and recieves a receipt (her own TAN to be added to file name)

(5) Bill pays Fred

(6) Ginnie distributes the file in the Internet


Virtual Goods 20

Ginnie copies content to Harry

Accounting Server

Ginny copies Fred‘s musicto Harry and to other friends

FredMusic Provider

Ginny loves Fred‘s music

Harry

pre

sent

s TAN=5

3

and

pays

for t

he fil

e

TAN=71

MySong4fo53.mp3 MySong4fo53.mp3

Harry adds TAN=71To file name

MySong4fo71.mp3

Harry shares Ginniesenthusiam for Fred‘s music

Ginny receives provision

Fred receives share as author


Virtual Goods 21

Payment = right to receive a provision

(6) Ginnie copies file to Harry (Harry is free to pay or not)

(7) In case Harry pays,then he receives his own TAN (to be added to file name,

(8) then Fred receives his share as an author

(9) and then Ginny receives her share as provision

(6) Harry re-distributes his file ...


Virtual Goods 22

„Pretty Good Distribution“

• Users can earn more money than they pay• Users who do not pay, are free to consume and re-

distribute• Re-distribution without payment supports former payer• Re-distribution supports marketing

• Alternative structure of distribution „bottom-up“• „For friends only“ (name of an Ilmenau spin-off)• Open source in www.4fo.de


Virtual Goods 23

Applications

• Music marketing• Music of young groups / composers• Radio / TV broadcast

• Conference papers (authors want to keep right of distribution)

• Levels in games of different authors

• Community and re-distribution services (Ginnie has the best pieces, so we look for products at Ginnie‘s server)


Virtual Goods 24

Challenges

• Accounting protocol• Central names and file register vs. de-central

receipts• Electronic payment (e.g., Paybest)• Integrity of origin (Audio-Id, water marks?)• Models of provision• Models of receipts• Roll of a PKI (needed anyway?)• Establishment of accounting services


Virtual Goods 25

References

[1] Angelo Sotira: Step 1 – What is Gnutella? In: http://www.gnutella.com , 3 Dec 2001. Adam T. Lindsay, Jürgen Herre: MPEG-7 and MPEG-7 Audio – An Overview.

Journal of the AES, June/July 2001.

[2] Allamanche, E.; Herre, J.; Hellmuth, O.; Fröba, B.; Cremer, M.: AudioID: Towards Content-Based Identification of Audio Material. In 110th AES-Convention, Amsterdam, 2001. Convention Paper 5380

[3] IPMP Ad-hoc Group, ISO/IEC JTC 1/SC 29/WG11: Coding of Moving Pictures and Audio. Study of Text of PDAM ISO/IEC 14496-1:2001, Dec 2001.

[4] G. Spenger, C.C. Bürgel: MPEG-21: Der Schlüssel zu Multimedia. DuD 5/2002.

[5] Grimm, R.; Nützel, J.: Geschäftsmodelle für virtuelle Waren. DuD 5/2002.

[6] 3GPP TS 22.242 V6.0.0 (2002-06). Digital Rights Management (DRM) Stage 1, Release 6, June 2002.

[7] Neubauer, Ch.; Pickel, J.; Brandenburg, K.; Siebenhaar, F.: Aspekte des Rechtemanagements für digitale Güter, 22. Tonmeistertagung, Hannover, November 2002, VDT.

[8] Nützel J.; Grimm R.; Puchta S.: Musik im Internet – Wie kann man eine Ware verkaufen, die alle schon haben? 22. Tonmeistertagung, Hannover, November 2002, VDT.

http://www.4fo.de http://www.4friendsonly.com

© r. grimm, tu ilmenau, dec 2002 virtual goods 1 uwe muster hamburg security and business models...

Documents

rdiger grimm tu ilmenau

virtual goods number

rights of usage slide

cheap slide

rights of usage user

free choice of user

content controls usage

identification of rights