Leonardo Chiariglione @ Ebook Lab Italia 2011 - Micro payments for an ebook marketplace

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Currently there are no simple means to monetise long tail editorial content. Inexpensive licensing supported by machine readable licensing, electronic distribution and flexible micropayment may provide opportunities to exploit a potentially vast market. Le piattaforme di pagamento rappresentano un elemento fondamentale per la commercializzazione di contenuti digitali. Purtroppo ad esso viene dedicata poca attenzione ignorando le conseguenze per l'intero ecosistema. E' possibile immaginare un sistema per micro transazioni che sia aperto ed interoperabile? Quale impatto avrebbe sui prodotti e sul mercato?

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Leonardo Chiariglione @ Ebook Lab Italia 2011 - Micro payments for an ebook marketplace

  1. 1. Micro payments for an ebook marketplace Leonardo Chiariglione – CEDEO.net Ebook Lab Italia, Rimini, 2011/03/03
  2. 2. Why an ebook is different from a book? —  An ebook is made of bits and not atoms —  Making an ebook is —  Easy because you can shrink – if you want – the elements of a value chain to one —  Difficult if you want to harvest the opportunities offered by the digital form —  Pricing an ebook is —  Easy because it is a new product —  Difficult because there are no rulesMicro payments for an ebook marketplace 2011/03/03 2
  3. 3. It is not the first time a media type goes digital —  Audio —  Vinyl – Cassette – CD – MP3 —  Radio —  AM – FM – DAB et al. – Internet Radio —  Video —  Cassette – DVD – BluRay – DivX – Online services —  TV —  Many analogue formats – Various CAS – Online servicesMicro payments for an ebook marketplace 2011/03/03 3
  4. 4. What about ebooks? —  Books used to have a single analogue format ;-) —  Ebooks come in many distribution formats on top of widely adopted clear text formats —  Ownership of a distribution format – i.e. the consumption device – is deemed to be important —  Is this the best way to cater to the development of an infant industry? —  If the history of media on the internet is any guide…Micro payments for an ebook marketplace 2011/03/03 4
  5. 5. The Italian connection… —  The no-profit group “Digital Media in Italia” (dmin.it) proposes to maximise the profitable flow of digital media —  Per give Italy to acquire a primary role in the exploitation of the globale “digital media” phenomenon —  Acting on the offer/access to —  Content —  Broadband networks —  Pay/cash services —  Harmonising the requirements of —  Authors: freedom to offer their works —  Intermediaries: freedom to choose a role —  Consumers: freedom to access content of their choiceMicro payments for an ebook marketplace 2011/03/03 5
  6. 6. Driversof dmin.it proposal —  Standards are great enablers of business opportunities —  If the role of value chain players is duly remunerated —  Italy is too small a country to allow a competition of technologies —  Are we really interested in a competition of big external players on our skin? —  Dmin.it —  Defines a set of basic mandatory technologies —  Leaving operators the freedom to use other technologiesMicro payments for an ebook marketplace 2011/03/03 6
  7. 7. Key technology #1 – format —  Dmin.it chooses the MPEG-21 format, an ISO/IEC standard for interoperable management and protection of digital assets —  Key features of the MP21 format —  Content packaging format —  Content identification —  Content management and protection —  Rights expression language —  Contract expression language —  And many more…Micro payments for an ebook marketplace 2011/03/03 7
  8. 8. The word from WIPO/1 —  In order to effect a change in attitude, I believe that we need to re-formulate the question that most people see or hear about copyright and the Internet. People do not respond to being called pirates. Indeed, some, as we have seen, even make a pride of it. —  The history of the confrontation of our classical copyright world with the digital environment has been more a sorry tale of Luddite resistance than an example of intelligent engagement.Micro payments for an ebook marketplace 2010/12/12 8
  9. 9. The word from WIPO/2 —  Future generations are clearly going to regard many of the works, rights and business agents that we talk about as cute artefacts of cultural history, much as the vinyl record has become in a very short space of time. Francis Gurry, Director General of WIPO - World Intellectual Property OrganizationMicro payments for an ebook marketplace 2010/12/12 9
  10. 10. Key technology #2 – access —  I won t talk about it this time LMicro payments for an ebook marketplace 2011/03/03 10
  11. 11. Key technology #3 – pay/ cash —  To do business with digital media we need —  A low entry level and distributed technology —  To enable anybody to perform payment and cashing operations —  Especially when micro amounts are involved —  We need to implement the following steps 1.  Define a set of protocols 2.  Standardise the protocols 3.  Implement systems based on standard protocols 4.  Deploy systems based on standard protocolsMicro payments for an ebook marketplace 2011/03/03 11
  12. 12. Step 1: define a set of protocols Negotiation of content with payment data Value Chain User 1 Value Chain User 2 (e.g. Seller) Negotiation of ntwk resources (e.g. Buyer) with payment dataAcct11 Acct21 Payment with unitsAcct12 Virtual Account Virtual Account Acct22 Service Provider 1 Service Provider 2Acct1n Acct2m Shared Services Bank Credit Prepaid Bank Utility Electronic account card card account bill purseMicro payments for an ebook marketplace 2011/03/03 12
  13. 13. Step 2: standardise protocols/1 Create  Licence   SP   Seller   13 Buyer   Repute  User  SP   Seller s   Buyer s   Payment  and   Payment  and   Cashing    SP     Cashing    SP  Micro payments for an ebook marketplace 2011/03/03 13
  14. 14. Step 2: standardise protocols/2 Negotiate Licence SPNego=a=on    Interface Create Licence SP Owner Participant (e.g. Seller) (e.g. Buyer) Payment  and  Cashing    Interface Seller s Buyer s Payment & Payment & Cashing SP Cashing SP
  15. 15. Step 3: implement systems based on standard protocols Web, IP and Mobile TV (http:// wim.tv/)Micro payments for an ebook marketplace 2011/03/03
  16. 16. The wim.tv ecosystem Web TV 1 ecosystem Content   Metadata   Content Expected  $   providers End users Syndicators Agents Advertisers Web TV 2   engine  &  repository  Micro payments for an ebook marketplace 2011/03/03 16
  17. 17. Step 4: Deploy systems based on standard protocols —  The Payment Services Directive (PSD, 2007/64/EC) —  Regulates payment services, providers and users in Europe —  Provides for the necessary legal framework within which all payment service providers operate —  Aims at increasing pan-European competition and participation in the payments industry —  Electronic Money Institutions (EMI) and Payment Institutions (PI) can provide payment services —  A PI can take the role of VASPMicro payments for an ebook marketplace 2011/03/03 17
  18. 18. An ebook marketplace Basic Books or Final End Elements chapters product usersMicro payments for an ebook marketplace 2011/03/03
  19. 19. To know more http://www.dmin.it / http:// mpeg.chiariglione.org http://wim.tv/Micro payments for an ebook marketplace 2011/03/03 19

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