DRM (DIGITAL RIGHTS MANAGEMENT)

DRM on eBooks Typically a code applied to an ebook in order to control who can open it, and how they can use it

Uses of DRMRetailers use DRM to limit which user account a downloaded book is linked to

Amazon uses DRM to make sure that you can only read .mobi files on your Kindle device

Libraries use DRM to limit how many people can access a book at a time, or how many times it can be accessed

DRM can also be used to embed the name of the user in the ebook file

3 Common Types of DRMAmazon applies its own DRM to Kindle eBooks, and they completely control the system

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Apple applies its FairPlay DRM to all files purchased from the iBookstore

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Adobe’s DRM system, called Adobe Digital Editions Protection Technology (ADEPT) uses a program called Adobe Content Server 4 (ACS4) to manage DRM

DRM: The Prosfights copyright infringementhelps copyright holder maintain artistic controlprevents piracy

DRM: The Consinconveniences and restricts legitimate customers

prevents people from doing legal things like making backup copies, or accessing items in the public domain

can create compatibility issues when moving from one device or system to another

THE ANTI-DRM PHILOSOPHICAL ARGUMENT:INFORMATION WANTS TO BE FREE

“Piracy is a type of progressive taxation.”

– Tim O’Reilly

O’Reilly’s Argument:The exposure created by piracy is worth the few sales points you lose

He compares digital piracy to shoplifting in bricks-and-mortar stores: an annoying, but minor inevitable part of doing business

“Free” will eventually be replaced by a higher quality paid service

Source: http://www.openp2p.com/lpt/a/3015

The majority of people will just do whatever is easy.

easy

not easy

Anti-DRM Hypothesis:

Some DRM-Free Publishers and Imprints:

Right now, most of the books on offer in DRM-free format fall into one of the following genres:

Sci-fi and fantasy (Chizine, tor.com and Baen)

Romance (Carina Press, Ellora’s Cave, All Romance Ebooks)

Technology (O’Reilly, Microsoft Press, Manning)

A THIRD WAY

Social DRMtypically identifies the end consumer in a visual way, by imprinting or watermarking the book with the buyer’s name

typically places the customer’s name in a visible place in the book, and also in a sneaky, hidden place

allows the retailer/publisher/author to trace a pirated copy of a book back to the source

Some companies offering Social DRM Services:

TO DRM, OR NOT TO DRM

Factors to Consider:Does increasing the digital rights that you grant the reader increase the perceived value of the book as a product?

How closely the digital product resembles the physical one: are you adding value that’s not present in the hardcover?

Does your target audience care about digital rights?

Is the book easily replicable? What will the quality be like on a pirated copy?

“The extent to which granting digital rights affects a seller’s pricing power is determined by the interplay between a direct quality effect, proportional to the increase in the quality of the legal good, and a differential piracy effect, proportional to the increase in the quality of the pirated good.”

Are Digital Rights Valuable? Theory and Evidence from Ebook Pricing

CeDER Working Paper No. 06-01 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=871243

Translation: !

If piracy would cause a degradation in quality, then you can price the book higher. !

If it’s relatively easy to duplicate the book at a comparable quality, then you’ll need to lower the price.

Right now, the vast majority of trade and academic titles are being distributed with DRM encryption. !

Aside from the romance, sci-fi/fantasy and technological markets, the reading population doesn’t seem to be overly-concerned with the restrictions imposed by DRM.!

That could change as ereading habits become more sophisticated, though.!

Stay tuned!

Want to talk about whether you should be applying DRM on your eBOUND-distributed ebooks?Contact Shannon Culver at shannon_culver@eboundcanada.org