Copyright and Technology 2011: Opening Remarks - Bill Rosenblatt

Copyright and Technology 2011 November 30, 2011 1

Opening Remarks Bill RosenblattGiantSteps Media Technology Strategies www.giantstepsmts.com www giantstepsmts com billr@giantstepsmts.com Twitter: @copyrightandtec +1 212 956 1045 2

www.giantstepsmts.com 3

www.copyrightandtechnology.com 4

www.gothammediaventures.com 5

What Are We Discussing Today? 8

Interface between Copyright and Technology T h lDigital technology used to make and distribute copies at virtually no costCopyright i d t responses, all i t l t dC i ht industry ll interrelated: – Legal – Technological – Economic – Education 9

Technologies to Affect Copyright Content access control – DRM – Conditional Access Content identification – Filtering – License/royalty management Rights registries 10

Legal Concepts that Affect These Technologies T h l i Fair Use First Sale Secondary infringement liability Network service provider liability p y Anticircumvention legislation Blanket licensing of content 11

Technologies 12

Digital Rights Management 13

DRM is a “troubled”* technology… Why? *Jaron Lanier, You Are Not a Gadget, 2010 14

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 – 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 15

Market: Economic Incentives Misaligned E i I ti Mi li d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 16

Norms:Consumers Don’t Yet See Value in N ModelsC D ’t Y t S V l i New M d l Radio ulations Record Store Legacy VCREmu Bookstore Free/Limited VODDig Native Paid Subscription VOD New, gital Free/Limited OD Music Paid Sub OD Music 0 10 20 30 40 50 60 70 Million U.S. Users (estimated) 17

Norms: Users Influenced towards Infringing B h i U I fl dt d I f i i BehaviorDefinition of DRM commandeered by the press – Narrower than original definitions – Yet broadened to apply to any technology that restricts user behavior in any way1Notion that DRM  Big Media  Evil/ObsoleteRomanticism & rationalization of hacker/pirate ethic“Lords f the Cloud” t the “free d“L d of th Cl d”2 get th “f and open” PR3 ”1C. Doctorow, M. Masnick, etc.2J Jaron Lanier, Y A Not a Gadget L i You Are N t G d t3Robert Levine, Free Ride 18

Architecture:Technological IT h l i l Innovation Hampered ti H d Lack of revenue for DRM vendors Venture capital scared off – B d press Bad – Non-sexy topic Researchers scared off R h d ff – RIAA actions against Prof. Ed Felten in 1999 – DRM research “politically incorrect” in U S politically incorrect U.S. 19

The Rights Technologies R&D Imbalance450 70400 60350 50300250 40200 30 2009 Gross Expen‐ ditures on R&D 150 ($Billion) 20 RT R&D Output RT R&D Output100 (Research Papers) 10 50 RT R&D Index 0 0 Device Producers Content Producers Sources: O C IMF S OECD, 20

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) 21

Yet DRM Is Alive Today… Downloads Real Time DeliveryE-books Yes “Screenshot DRM” (page images)Music Mobile device Usually “offline listening (stream encryption) mode” d ”Video Yes In most release windows (stream encryption) (t ti ) 22

Will DRM Die?Not WhN t When It Enables N Models E bl New M d l  Digital music downloads: iTunes (originally)  Premium pay-per-view TV  E l release window fil Early l i d films  Music subscription services:* Rhapsody, MOG Rdi S tif P i Rh d MOG, Rdio, Spotify Premium  Subsidized-content ecosystems: boinc (music) Amazon Prime (e book a month) (music), (e-book-a-month)  Library e-book lending: OverDrive, BlueFire *Yes they do – they just don’t call it “DRM” 23

Content Identification 24

Techniques for Identifying Content Watermarking Fingerprinting 25

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 – First for digital images – Audio and video later 26

FingerprintingExamining content to determine its identity – Compute a set of numbers (“fingerprints”) – Look up in database, see if there’s a matchBased on mathematical concept of hashing – But allows for different files that look/sound the same – Can compensate for certain transformations: excerpting, cropping, audio distortion, etc.History: y – 2002: Introduced for music during Napster litigation – 2006: Video fingerprinting introduced – 2007 “T t fi 2007: “Text fingerprinting” (Att ib t ) adopted b AP i ti ” (Attributor) d t d by 27

Content Identification Business B fit B i BenefitsDetecting and deterring unauthorized useTracking content usageDiscovery & recommendationsIncreasing Internet ad revenue gManaging assets and integrating systemsMonetizing transformational content uses 28

Legal Developments…and their Technical Solutions 29

Legal DevelopmentsNetwork operator liability“Free riding”Digital First Sale 30

Network Operator LiabilitySecondary liability – Contributory: aiding and abetting infringement – Vicarious: “looking the other way” and benefiting from it looking way – Inducement: inducing others to infringe as business modelISP Liability – Notice and takedown (DMCA 512) – Graduated/Progressive Response a/k/a “three strikes” g p (France, South Korea, Taiwan, New Zealand, UK) – Center for Copyright Information, USA 31

Technical Solutions Fingerprinting Watermarking Traffic analysis 32

“Free Riding”Monetizing links to copyrighted contentPosting links to illegal content (e.g. in cyberlockers)Monetizing content appearing in search results“Cloud sync” services(?) y () 33

Technical SolutionsFingerprinting & searchTagging content with “beacon” metatags – AP hNewsTagging content with rules for indexing and search results – ACAP 34

Digital First SaleFirst Sale: Section 109 of U.S. copyright law USKnown as “Exhaustion” in other countriesIf you obtain a copyrighted work legally, you can do what you want with itApplicability to digital downloads is unclearCopyright Office punted on it in 2001 reportDownloads covered under licenses, not copyright 35

Technical Solutions Forward“Forward and delete” DRM like functionality delete DRM-likeDescribed in 2001 Copyright Office paperImplemented by startup ReDigiDescribed in IEEE P1817 standard for “Consumer Ownable Digital Personal Property” 36

Thanks to our Sponsors 40

Thanks to our Media Sponsors 41

And finally… 42

Recommended Reading Robert Levine, Free Ride 43

Copyright and Technology 2011: Opening Remarks - Bill Rosenblatt

by GiantSteps Media Technology Strategies on Dec 01, 2011

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