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Copyright and Technology
      London 2012
       19 June 2012




             1
Opening Remarks

          Bill Rosenblatt
GiantSteps 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.musically.com




         5
Twitter:

#ctlondon2012



       6
American Conference Jargon
         American              British

Attendee            Delegate

Seat                Place

Booth               Stand

Cocktail party      Drinks reception

Butts in seats      Bums in seats

Ripoff              VAT


                    7
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 Dealing
    Exhaustion
    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 Models
C         D ’t Y t S V l i New M d l
                            Radio
  ulations




                      Record Store
 Legacy
Emu




                              VCR

                        Bookstore
Dig Native




                 Free/Limited VOD
    New,
  gital




             Paid Subscription VOD

                On Demand Music
                                     0    10   20      30   40   50    60   70       80   90   100

                                                    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 t
3Robert Levine, Free Ride
                                     18
Architecture:
Technological I
T 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 Imbalance
450                                          70


400
                                             60

350
                                             50
300


250                                          40   2009 Gross Expen‐
                                                  ditures on R&D 
200                                          30   ($Billion)

150
                                                  Rights Technologies 
                                             20            p
                                                  R&D Output 
100                                               (Research Papers)
                                             10   Rights Technology 
 50
                                                  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 Dealing/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




                               21
Yet DRM Is Alive Today


          Downloads            Real Time Delivery
E-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 Wh
N t When It Enables N Models
            E bl New M d l
Service investment protection
  – Music: iTunes (originally)
  – E-books: Amazon
    E books:
  – Digital pay TV
Business models
  – Subscription music services: Spotify, Deezer, etc
  – Library e-book lending: OverDrive
          y              g
Subsidized content
  – Amazon Prime: one e-book at a time “lending”
                                              g
  – MuveMusic: unlimited music downloads with phone
                           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
Inserting invisible data into e-book files
Inserting visible personal info into e-book files
Data capacity: typically a few dozen bytes
Technology appeared in mid-to-late 1990s
  – First for digital images
  – Audio and video later
  – PDFs & EPUBs most recent
                         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 Exhaustion




             30
Network Operator Liability

Secondary liability (US def’ns)
                         def ns)
   – 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 responsibility
   – Notice and takedown (US)
   – Notice and notice (Canada)
                       (      )
   – Graduated Response
     (France, South Korea, Taiwan, New Zealand, UK)

                               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
Exhaustion

If you obtain a copyrighted work legally
                                  legally,
 you can do what you want with it
Applicability to digital d l d is
A li bilit t di it l downloads i unclear l
U.S. 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 U.S. Copyright Office paper
Implemented by U.S. startup ReDigi
Described in IEEE P1817 standard for
 “Consumer Ownable Digital Personal Property”




                       36
Conference Agenda




        37
Morning

Keynote:
 Eric Walter, General Secretary, HADOPI
Plenary Session: Policing Pi
Pl      S i P li i Piracy
Plenary Session:
 The Yin and Yang of Piracy Data Collection
 (sponsored by MarkMonitor)



                     38
Afternoon

   Technology Track              Law & Policy Track
 Content Security            Rights Registries: Bringing
  Challenges in Multi
                Multi-         Precision and Efficiency to
  Platform Distribution        Rights Licensing
 Content Identification:     International Perspectives
  Progressive Response,        on Digital Copyright
  Media Measurement and
  More


                            39
Thanks to our Sponsors




           40
Thanks to our Media Sponsors




              41
And finally





      42
Recommended Reading




   Robert Levine, Free Ride
               43

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Copyright and Technology London 2012: Opening Remarks - Bill Rosenblatt, GiantSteps Media Technology Strategies

  • 1. Copyright and Technology London 2012 19 June 2012 1
  • 2. Opening Remarks Bill Rosenblatt GiantSteps Media Technology Strategies www.giantstepsmts.com www giantstepsmts com billr@giantstepsmts.com Twitter: @copyrightandtec +1 212 956 1045 2
  • 7. American Conference Jargon American British Attendee Delegate Seat Place Booth Stand Cocktail party Drinks reception Butts in seats Bums in seats Ripoff VAT 7
  • 8. What Are We Discussing Today? 8
  • 9. 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
  • 10. Technologies to Affect Copyright Content access control – DRM – Conditional Access Content identification – Filtering – License/royalty management Rights registries 10
  • 11. Legal Concepts that Affect These Technologies T h l i Fair Dealing Exhaustion Secondary infringement liability Network service provider liability p y Anticircumvention legislation Blanket licensing of content 11
  • 14. DRM is a “troubled”* technology
 Why? *Jaron Lanier, You Are Not a Gadget, 2010 14
  • 15. 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
  • 16. 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
  • 17. Norms: Consumers Don’t Yet See Value in N Models C D ’t Y t S V l i New M d l Radio ulations Record Store Legacy Emu VCR Bookstore Dig Native Free/Limited VOD New, gital Paid Subscription VOD On Demand Music 0 10 20 30 40 50 60 70 80 90 100 Million U.S. Users (estimated) 17
  • 18. 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 t 3Robert Levine, Free Ride 18
  • 19. Architecture: Technological I T 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
  • 20. The Rights Technologies R&D Imbalance 450 70 400 60 350 50 300 250 40 2009 Gross Expen‐ ditures on R&D  200 30 ($Billion) 150 Rights Technologies  20 p R&D Output  100 (Research Papers) 10 Rights Technology  50 R&D Index 0 0 Device Producers Content Producers Sources: O C IMF S OECD, 20
  • 21. Laws Not Amenable to Technological Implementation T h l i lI l t ti  Fair Dealing/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 21
  • 22. Yet DRM Is Alive Today
 Downloads Real Time Delivery E-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
  • 23. Will DRM Die? Not Wh N t When It Enables N Models E bl New M d l Service investment protection – Music: iTunes (originally) – E-books: Amazon E books: – Digital pay TV Business models – Subscription music services: Spotify, Deezer, etc – Library e-book lending: OverDrive y g Subsidized content – Amazon Prime: one e-book at a time “lending” g – MuveMusic: unlimited music downloads with phone 23
  • 25. Techniques for Identifying Content Watermarking Fingerprinting 25
  • 26. Watermarking Inserting/embedding data into “noise” portions of noise image, audio, or video signal Inserting invisible data into e-book files Inserting visible personal info into e-book files Data capacity: typically a few dozen bytes Technology appeared in mid-to-late 1990s – First for digital images – Audio and video later – PDFs & EPUBs most recent 26
  • 27. 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
  • 28. 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
  • 29. Legal Developments 
and their Technical Solutions 29
  • 30. Legal Developments Network operator liability “Free riding” Digital Exhaustion 30
  • 31. Network Operator Liability Secondary liability (US def’ns) def ns) – 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 responsibility – Notice and takedown (US) – Notice and notice (Canada) ( ) – Graduated Response (France, South Korea, Taiwan, New Zealand, UK) 31
  • 32. Technical Solutions Fingerprinting Watermarking Traffic analysis 32
  • 33. “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
  • 34. Technical Solutions Fingerprinting & search Tagging content with “beacon” metatags – AP hNews Tagging content with rules for indexing and search results – ACAP 34
  • 35. Exhaustion If you obtain a copyrighted work legally legally, you can do what you want with it Applicability to digital d l d is A li bilit t di it l downloads i unclear l U.S. Copyright Office punted on it in 2001 report Downloads covered under licenses, not copyright 35
  • 36. Technical Solutions  Forward “Forward and delete” DRM like functionality delete DRM-like Described in 2001 U.S. Copyright Office paper Implemented by U.S. startup ReDigi Described in IEEE P1817 standard for “Consumer Ownable Digital Personal Property” 36
  • 38. Morning Keynote: Eric Walter, General Secretary, HADOPI Plenary Session: Policing Pi Pl S i P li i Piracy Plenary Session: The Yin and Yang of Piracy Data Collection (sponsored by MarkMonitor) 38
  • 39. Afternoon Technology Track Law & Policy Track  Content Security  Rights Registries: Bringing Challenges in Multi Multi- Precision and Efficiency to Platform Distribution Rights Licensing  Content Identification:  International Perspectives Progressive Response, on Digital Copyright Media Measurement and More 39
  • 40. Thanks to our Sponsors 40
  • 41. Thanks to our Media Sponsors 41
  • 43. Recommended Reading Robert Levine, Free Ride 43