More Efficient Rights ManagementThe key to future profits<br />Mike ShatzkinFounder & CEO, Idea Logical Company<br />Heath...
The change that is accelerating<br />2<br />Whole books get harder to sell in any format: competition and atrophying chann...
Robust rights databases are needed!<br />3<br />Or, so it seemed, but we wanted to confirm<br />CCC funded research for a ...
The Current State of Rights Management Systems<br />Initial Findings from BISG & CCC’s <br />Joint Survey of Publishers an...
Survey Process<br />5<br />Goal was to get a read on the rights management landscape among U.S. publishers<br />We intervi...
Summary Findings<br />6<br />Only one publisher interviewed has addressed rights management comprehensively <br />Some hav...
Summary Findings, part 2<br />7<br />Current systems are ineffective and don’t adequately meet needs<br />Mix of off-the-s...
Every Transaction is a Rights Transaction<br />8<br />Digital Publishing is a true paradigm shift<br />Creating both oppor...
Why Rights Are Important Now<br />9<br /><ul><li>“Licensing is a field that will only continue to grow in this new world.”
“Rights are the foundation for everything now.”
“We saw a 100% increase in licensing revenue when we started responding faster to rights requests.”
“You have licensing/permissions working in the 60’s and digital media being created in 2011 – it creates bottlenecks.”
“Traditional models and channels disappearing at a rapid rate.”
“You’re losing revenue for sure if you don’t know what your rights are.”</li></ul>“It’s not can we afford to, but can we a...
How To Move Forward<br />10<br />Industry education<br />Best practices<br />Discussion of issues and complexities<br />De...
Implementation Strategies<br />11<br />Start by databasing current contracts; then address the backlist<br />Systems must ...
Content in the Wild<br />“not the kind of stuff that you can actually let out into the world”<br />
The Wild<br />“I think it’s the scariest thing that I’ve heard in the past few years…because the value that we still have ...
Legal & Compliance<br />“the Company’s independent registered accounting firm advised the Company that the control deficie...
Brand<br />“Publisher Settles Class Action Lawsuit”<br />Importance of Author Relationships:  “Any author who ever hears m...
“a database system that creates extra steps instead of removes them is never going to be embraced”<br />“we probably will ...
“Unless you can organize your content in a way that makes the purchase very easy, it’s not low-hanging fruit.  And that’s ...
Risk Mitigation<br />“How good your data management is allows you the greatest leverage and facility to actually do with y...
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08 making information pay 2011 -- reid, marlin, shatzkin (rights managment)

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08 making information pay 2011 -- reid, marlin, shatzkin (rights managment)

  1. 1. More Efficient Rights ManagementThe key to future profits<br />Mike ShatzkinFounder & CEO, Idea Logical Company<br />Heather ReidDirector of Data Systems & Services, Copyright Clearance Center<br />David MarlinPresident and Co-Founder, MetaComet Systems<br />
  2. 2. The change that is accelerating<br />2<br />Whole books get harder to sell in any format: competition and atrophying channels<br />Fragment permission and licensing opportunities grow, due to apps, ebooks, and web sites<br />More transactions, fewer dollars per<br />Rights research eating up too much of the revenue<br />
  3. 3. Robust rights databases are needed!<br />3<br />Or, so it seemed, but we wanted to confirm<br />CCC funded research for a team to speak to publishers and service providers<br />We learned this is a pain point that is universally appreciated<br />We learned that this is a vast problem that stymies just about every company<br />We think we figured out where to begin to solve it<br />
  4. 4. The Current State of Rights Management Systems<br />Initial Findings from BISG & CCC’s <br />Joint Survey of Publishers and Vendors<br />Heather Reid, Director<br />Data Systems & Services<br />Copyright Clearance Center<br />
  5. 5. Survey Process<br />5<br />Goal was to get a read on the rights management landscape among U.S. publishers<br />We interviewed both publishers and vendors of rights management systems<br />Nine publishers<br />Six vendors<br />
  6. 6. Summary Findings<br />6<br />Only one publisher interviewed has addressed rights management comprehensively <br />Some have at least some data stored digitally in a persistent data structure <br />Many publishers only store their rights data as PDFs of legal contracts<br />“50% of all publishers – and even the big ones – don’t have a digitized contract file. They’ve got contracts filed in paper files somewhere.“ -Vendor<br />
  7. 7. Summary Findings, part 2<br />7<br />Current systems are ineffective and don’t adequately meet needs<br />Mix of off-the-shelf and home grown systems<br />Not well integrated<br />Not managed/funded as strategic initiative<br />Rights = a choke point <br />Inbound rights not accessible in the way they should<br />Outbound rights take too long to process<br />In the old world, … you create a book and you push it in physical form and the contracts departments was … a back office operation. We’re dealing in a content world now…and as a result…rights [management]…is critical.”<br />- Publisher<br />
  8. 8. Every Transaction is a Rights Transaction<br />8<br />Digital Publishing is a true paradigm shift<br />Creating both opportunities and threats<br />Global marketplace for digital products<br />Entails strategic management and exploitation of rights<br />Micro-transactions will grow<br />Knowing rights at a granular level is key <br />Rigorous rights management NOT optional <br />Table stakes for truly exploiting new markets<br />“This is about leveraging your intellectual property in every sales channel and every market around the globe.”<br /> - Publisher<br />
  9. 9. Why Rights Are Important Now<br />9<br /><ul><li>“Licensing is a field that will only continue to grow in this new world.”
  10. 10. “Rights are the foundation for everything now.”
  11. 11. “We saw a 100% increase in licensing revenue when we started responding faster to rights requests.”
  12. 12. “You have licensing/permissions working in the 60’s and digital media being created in 2011 – it creates bottlenecks.”
  13. 13. “Traditional models and channels disappearing at a rapid rate.”
  14. 14. “You’re losing revenue for sure if you don’t know what your rights are.”</li></ul>“It’s not can we afford to, but can we afford not to?`”<br />
  15. 15. How To Move Forward<br />10<br />Industry education<br />Best practices<br />Discussion of issues and complexities<br />Develop standardization of terms and definitions <br />For “rights in” and “rights out”<br />Common taxonomy<br />Alignment within and among publishers<br />Reframe rights management as strategic to business<br />Rights vended are rights sought<br />Publishers seeking bundles of rights are also vending those same rights<br />Systems and process integration<br />Reduce manual data entry<br />Reinforce proper workflow and communication<br />Cross-company buy-in<br />“It’s about [knowing] what you need to own in order to transform your business and be a player in the new marketplace. Otherwise, you’re kind of old news. “<br />- Publisher<br />
  16. 16. Implementation Strategies<br />11<br />Start by databasing current contracts; then address the backlist<br />Systems must be flexible and extensible – adapting as market demands evolve<br />Systems integration is key – rights management system must talk to other key systems<br />
  17. 17. Content in the Wild<br />“not the kind of stuff that you can actually let out into the world”<br />
  18. 18. The Wild<br />“I think it’s the scariest thing that I’ve heard in the past few years…because the value that we still have as publishers … as content curators and content creators … if we don’t do a better job of this, we’re going to lose that advantage … very quickly.”<br />13<br />
  19. 19.
  20. 20. Legal & Compliance<br />“the Company’s independent registered accounting firm advised the Company that the control deficiency described below constitutes a material weakness in its internal controls.” – an actual Annual Report<br />Single most important value that the rights system brought to one organization: “Risk Management”<br />“The bigger issue may be that of potential liability to the business”<br />“…exposure and liability associated with using content we haven’t acquired.”<br />
  21. 21. Brand<br />“Publisher Settles Class Action Lawsuit”<br />Importance of Author Relationships: “Any author who ever hears me responding to this is going to go, it better be a five. So it’s a five.”<br />
  22. 22. “a database system that creates extra steps instead of removes them is never going to be embraced”<br />“we probably will still be dealing with decisions made now in 15 years”<br />Capital Investment<br />
  23. 23. “Unless you can organize your content in a way that makes the purchase very easy, it’s not low-hanging fruit. And that’s kind of what I’m stumbling over right now is getting the content organized.”<br />“ ‘it’s just easier for me to go out and source my own content than to work with you guys,’ scariest thing that I’ve heard in the past few years”<br />Profit<br />“we’re all sitting on the same problem. . . we’ve never really placed strenuous demands on our content in this way.”<br />“By the time they got back to the requester, they had gotten tired of waiting and had gone in a different direction.”<br />
  24. 24. Risk Mitigation<br />“How good your data management is allows you the greatest leverage and facility to actually do with your intellectual property what you thought you were acquiring it for!”<br />“having really a robust taxonomy in place that allows us to group content, to group it, slice it and dice, it”<br />19<br />
  25. 25. A next phase project: to make real progress<br />20<br />The first goal: all publishers properly databasingnew contracts from inception<br />The next objective: figuring out what it takes to get any publisher to that point<br />Required: a taxonomy that works, contracts and permissions mapped to the taxonomy, a workflow that captures new contract terms in a database reflecting the taxonomy<br />
  26. 26. Use and test the taxonomy<br />21<br />Select a core group of (about) 15 publishers: all sizes, all types<br />Pull all current “standard” contracts; map them to BISG rights committee taxonomy<br />Capture 3 months of permission and relicensing requests: map them to taxonomy<br />Analyze taxonomy for gaps; refine taxonomy and, if necessary, the contracts<br />
  27. 27. Uncover the workflow challenges <br />22<br />For each publisher, track the workflow that leads to the contract (editor’s instructions?)<br />Look for opportunities to capture contract info in database simultaneously with issuance of contract<br />Redesign workflow to create both at once<br />Create checkpoints to make sure contract and database are in synch<br />
  28. 28. Spread the best practices<br />23<br />Deliver a template for the database with checklist of contract “trouble spots”<br />Document workflow alternatives that deliver both contract and database<br />Develop a program to cost-efficiently help all publishers get to best practice with new contracts<br />Finally: we can then think about the backlist!<br />
  29. 29. For more information<br />Please contact Jess Johns<br />jjohns@idealog.com<br />

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