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Business Strategies inDigital Rights Management
Eric BaronUniversity of Connecticut
School of Law
May 2007
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E. Baron Business Strategies in DRM 2
Introduction to DRM Growth of Digital Content and Internet
– Perfect copies– Widespread distribution
WIPO Copyright Treaty of 1996– Article 11: Adequate protection against
circumvention of effective technical protection measures (TPMs)
– Article 12: Adequate remedies against alteration or removal of rights management information (RMI)
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E. Baron Business Strategies in DRM 3
U.S. – DMCA of 1998
17 U.S.C. §1201 – TPM – Proscribes circumvention
17 U.S.C. §1202 – CMI – Proscribes removal or alteration
17 U.S.C. §1203 – Private Right of Action 17 U.S.C. §1204 – Criminal Offense
• 5 years / $500K (first offense)
• 10 years / $1M (subsequent offenses)
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E. Baron Business Strategies in DRM 4
EU Copyright Directive
Each Member State to implement laws Article 6 – TPM
– Tools and acts of circumvention
Article 7 – RMI– Removal or alteration
Country Specific Differences– Varying exceptions– Labeling requirement (Germany)
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E. Baron Business Strategies in DRM 5
DRM Options Contract Based
– EULAs and Technology Licensing
Technology Based– TPM: Restrictions
• Basic Access Controls
• Rights Expression Language
• Secure Containers
– RMI/CMI: Identifiers• Watermarks
• Fingerprinting
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E. Baron Business Strategies in DRM 6
Access Restriction Example
Content locked at source Unlocked by user with proper credentials
Content
Internet
ID = 1234Description=------------------------------------------------------------------------------------------------------------------Rules =
User
Portable Device
Software "Player"
Remuneration
Superdistrib
utio
n
Content Provider
Content
Rules =Description=ID = 1234
EventEventEvent
Source: Cunard et al.,Current Developments in the Field of Digital Rights Management,WIPO SCCR 10/2 Rev, p 38 (2004).
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Watermark Identifier Example
Source identifier– Added to digital content– Can be visible or encoded– Extracted by a monitoring / analysis application
E. Baron Business Strategies in DRM 7
WatermarkEncoder
RenderingApplication
WatermarkDecoder
Watermark Data (File ID)
File File with WM
File ID
Distri-bution
Source: Cunard et al.,Current Developments in the Field of Digital Rights Management,WIPO SCCR 10/2 Rev, p 28 (2004).
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E. Baron Business Strategies in DRM 8
CMI: What’s really necessary?
US case law says:– © notice next to original images is not good
enough. Kelly v. Arriba Soft Corp.– A trademark does not qualify as CMI.
IQ Group Ltd. v. Weisner Publishers LLC.– Placing an author's name and copyright notice
electronically on a digital photo is sufficient. McClatchey v. Associated Press.
– BUT: Only District Court cases.
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E. Baron Business Strategies in DRM 9
Possible Identifier Regimes Levy System
– Levies paid by those who produce products that are enhanced adaptation of © works via file swapping systems.
Tax and Royalty System– Government tax ISP access, and tax paid to ©
holders based on access of works.
Digital Retailers Model– ISPs monitor and bill based on download of ©
works.
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E. Baron Business Strategies in DRM 10
RMI/CMI with User Identifier
Add user identifier to digital content upon purchase or access event.
Monitor peer-to-peer sites for unauthorized copies.
Watermark Data (User ID)
File File with WM
User
TransactionWatermarkEncoder
Distri-bution
Source: Cunard et al.,Current Developments in the Field of Digital Rights Management,WIPO SCCR 10/2 Rev, p 29 (2004).
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DRM in Action
E. Baron Business Strategies in DRM 11
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E. Baron Business Strategies in DRM 12
DRM Criticisms
Not Fully Effective– Analog Hole– Protection schemes are broken
Component compatibility Privacy Creation of security loopholes
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DRM Criticisms (cont.)
Fair Use / Exceptions Public access rights
– Physically impaired
Bootstrapping– TPM on products not traditionally covered by
©.
E. Baron Business Strategies in DRM 13
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E. Baron Business Strategies in DRM 14
Business Strategies
1. Select a preferred format of distribution.
2. Consider a blended approach of contract plus technology based DRM.
3. Using simple RMI/CMI may be good enough, especially for small businesses.
4. Consider identifiers instead of TPM.
5. Partner with an established company for packaged solutions, particularly for TPM.
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E. Baron Business Strategies in DRM 15
Business Strategies (cont.)
6. Consider a tiered TPM, RMI/CMI, and/or DRM-free approach.
7. For contract-based DRM, review potential enforceability issues in countries of distribution.
8. Examine potential patent infringement issues when creating “home grown” DRM solutions.
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E. Baron Business Strategies in DRM 16
Business Strategies (cont.)
9. Consider adding a user identifier to digital content upon purchase.
10. Avoid bootstrapping non-copyrightable works with TPMs.