Copyright and Technology Slide Presentation Summary

Copyright and Technology
2010

June 17, 2010

© 2010
GiantSteps
Media Technology Strategies
1

Opening Remarks

Bill Rosenblatt
GiantSteps Media Technology Strategies
www.giantstepsmts.com
i tt t
billr@giantstepsmts.com
+1 212 956 1045

© 2010
GiantSteps
2

www.giantstepsmts.com

© 2010
GiantSteps
3

Copyright and Technology

www.copyrightandtechnology.com

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www.gothammediaventures.com

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What Are We Discussing Today?

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Interface between Copyright and
Technology
T h l
 Digital technology used to make and distribute copies
at virtually no cost
CCopyright i d t h h d various responses, all
i ht industry has had i ll
interrelated:
– Legal
L l
– Technological
– Economic
– Education

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GiantSteps
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Technologies to Affect Copyright

 Content access control
– DRM
 Content identification
– Filtering
– License management

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Legal Concepts that Affect These
Technologies
T h l i
 Fair Use
 Secondary infringement liability
 Network service provider liability
 Anticircumvention legislation
g
 Blanket licensing of content

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Technologies

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Digital Rights Management

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DRM is a troubled technology…
technology…

Why?

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Factors Inhibiting DRM Success*

 Market:  Architecture:
– Economic incentives – Technological innovation
misaligned hampered
– Commercial content must
compete with free/illegal
 Norms:  Laws:
– Users don’t see value in
don’ – Laws not amenable to
choices of offers technological implementation
– Norms distorted by
architecture (technology)

*based on L. Lessig, Code and Other Laws of Cyberspace, 1999, pp. 88-90
Lessig, Cyberspace, 88-

© 2010
GiantSteps
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Economic Incentives Misaligned

 Content owners demand DRM but rarely pay for it
 Device makers and network operators use it to suit
their
th i own purposes
 Consumers have only indirect market influence

© 2010
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Consumers Don’t See Value in Choices
Don’
of Off
f Offers
 Expensive to educate users on unfamiliar offerings
– Apple had huge budget to educate about unbundled albums
– But Rhapsody Napster etc haven’t educated sufficiently
Rhapsody, Napster, etc. haven’
about subscription services
 Meanwhile, consumers focused on offline models:
Meanwhile
– Perception to be fought:
• Pay (purchase) must mean ownership;
y (p ) p;
• Free must mean radio or broadcast TV;
TV;
• Therefore “free ownership” must be the only real improvement
ownership”

© 2010
GiantSteps
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Users Influenced towards Infringing
Behavior
B h i
 Definition of DRM commandeered by the press
– Narrower than original definitions
– Yet broadened to apply to any technology that restricts user
behavior in any way*
 Notion that DRM == Big Media == Evil
 Romanticism & rationalization of hacker/pirate ethic

© 2010
GiantSteps
16 *See C. Doctorow, boingboing.net

Technological Innovation Hampered

 Lack of revenue for DRM vendors
 Venture capital scared off
– B d press
Bad
– Non-sexy topic
Non-
 Researchers scared off
R h d ff
– RIAA actions against Prof. Ed Felten in 1999
– DRM research “politically incorrect” in US
incorrect”
(not so much in Europe and Asia)

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Laws Not Amenable to
Technological Implementation
T h l i lI l t ti
 Fair Use laws not amenable to automation
 Privacy and due process are important but become obstacles
 Anticircumvention laws reduce incentive to develop effective
technologies
– Liability solely on the hacker
y y
– Effectiveness of TPM/DRM irrelevant to applicability of law
(per Universal v Reimerdes, 2000)
Reimerdes, 2000)

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GiantSteps
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So…
So… Is DRM Dead?

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Is DRM Dead?

 Short answer: no
no.

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Is DRM Dead?

 Slightly longer answer:
Only for permanent Internet music downloads.
downloads.

© 2010
GiantSteps
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Will DRM Die?

 Not where it enables new business models rather than
tries to emulate old ones.
EExamples:
l
– Buy single songs instead of albums: iTunes (originally)
– Subscription services for music:
Rhapsody, Napster, MOG*, Rdio*, Spotify Premium*
Rdio*,
– Subsidized ecosystems with “free” content:
free”
Nokia Comes With Music, Play Now Plus, Beyond Oblivion
– Library e-book lending: Overdrive
e-

© 2010
GiantSteps
22 *Yes they do – just don’t call it “DRM”
don’ DRM”

State of DRM Today

 Multi-platform DRM technologies
Multi-  E-book DRMs
– Marlin (Intertrust) – Amazon
– OMA DRM 2.1 (Open Mobile (Kindle & Kindle apps)
Alliance) – Adobe Content Server
– PlayReady (Microsoft) (most others)
 Video DRMs  Other proprietary DRMs
– Adobe Flash Access – Apple FairPlay
– Widevine – Subscription music services
– DivX (Sonic)  Gaming
– AACS/BD+ (Blu-ray)
AACS/BD (Blu-Blu
– SecuROM (S )
S ROM (Sony)
– StarForce
– ByteShield
– TryMedia (RealNetworks)
RealNetworks)

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Content Identification

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Techniques for Identifying Content

 Watermarking
 Fingerprinting

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Watermarking

 Inserting/embedding data into “noise” portions of
noise”
image, audio, or video signal
 Data capacity: typically a few dozen bytes
 Technology appeared in mid-to-late 1990s
mid-to-
– First for digital images
– Audio and video later
 Trade association est. 2006: Digital Watermarking
2006: g g
Alliance

© 2010
GiantSteps
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Evaluating Watermarks

 Undetectability
– How little it detracts from user’s experience
user’
 Robustness
– How well it survives copying to lower-resolution or analog f
lower- format
 Capacity
– How much data it can hold (typically a few dozen bytes)
 Security
– How resistant to attempts to alter or erase
 Efficiency
– How fast insertion and extraction

© 2010
GiantSteps
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Fingerprinting

 Examining content to determine its identity
– Compute a set of numbers (“fingerprints”)
(“fingerprints”
– Look up in database, see if there’s a match
there’
 Based on mathematical concept of hashing
– But allows for different files that look/sound the same
– C compensate f certain t
Can t for t i transformations:
f ti
excerpting, cropping, audio distortion, etc.

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History of Fingerprinting

 1999: First important patents issued
 2002: Introduced for music during Napster litigation
 2005: Major record co’s approve for P2P services
co’
 2006: Video fingerprinting introduced
 2007
2007: “T fingerprinting” (A b ) adopted b AP
Text fingerprinting” (Attributor) d
f d by

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Evaluating Fingerprinting Technologies

 Accuracy  Robustness
– False positives – Imperviousness to content
– False negatives transformations:
 Efficiency format changes,
– Calculation speed display rate changes,
– Ability to register live content deliberate distortions
in real time  Content database
– Lookup speed – Catalog size &
– Fingerprint size comprehensiveness

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GiantSteps
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Content Identification
Business B fit
B i Benefits
 Detecting and deterring unauthorized use
 Increasing Internet ad revenue
 Tracking content usage
 Managing assets and integrating systems
g g g g y
 Monetizing transformational content uses

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GiantSteps
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Network Operator Liability

 Secondary liability
– Contributory: aiding and abetting infringement
– Vicarious: “looking the other way” and benefiting from it
way”
– Inducement: inducing others to infringe as business model
 DMCA Safe Harbor
– Notice and takedown (512)
 Now: content owners pushing for ISP liability
– Graduated/Progressive Response a/k/a “three strikes”
strikes”
– Enacted in France, South Korea, Taiwan
, ,

© 2010
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“Free Riding”
Riding”

 Monetizing links to copyrighted content
 Monetizing content appearing in search results
 Copying of content (e.g. in blogs) without permission

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Technical Solutions

 Fingerprinting & search
 Tagging content with “beacon” metatags – AP hNews
beacon”
 Tagging content with rules for indexing and search
results – ACAP

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GiantSteps
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Blanket Licensing

 Just charge all ISP subscribers a levy for content use
 Distribute proceeds to licensors… somehow
licensors…
 Attempted in US on some college campuses for music
(Choruss)
Choruss)
 Considered in the Isle of Man (population 80,000)

© 2010
GiantSteps
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Technical Solutions

 Fingerprinting for play counting and royalty
distribution
 Oth i none; t h l -free blunt i t
Otherwise technology-
technology f bl t instrumentt

© 2010
GiantSteps
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Morning

 Keynote:
Stanley Pierre-Louis, Viacom
Pierre-
 Plenary S i
Pl Session:
Best Practices for Monetizing Premium Video Content
(sponsored b Ad b )
( d by Adobe)

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GiantSteps
41

Afternoon

Technology Track Law Track
 New Ecosystems for Video  Progressive Response
 Content Identification  News Publishing and Fair
Technologies Use
 What Is the Future of  Policing Copyright:
DRM? Whose Job Is It?

© 2010
GiantSteps
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