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Digital Rights Management (DRM)

Product Type: Market Research Report
Published by: IDATE
Published: July 2005
Product Code: R221-110
Description

• IT and consumer electronics players often seem to be in conflict with rights holders.

• The music sector, presented as the first victim of peer-to-peer exchange networks, is now a pioneer in virtual content distribution.

• DRM cannot solve the problems that legislators have yet to clarify, such as the right to private copying.

• DRM interoperability remains a difficult objective to achieve except, perhaps in the world of mobile telecommunications. Digital distribution and protection from unauthorised copying There are now several digital distribution channels:
- Virtual distribution that includes:

• Paying distribution with controlled access similar to that of digital pay TV via cable, satellite and ADSL

• Paying distribution via the internet that uses a DRM system • Free distribution without content protection and without rights holders’ approval via peer-topeer networks.
- Physical distribution that mainly concerns CDs, SACD, DVDs, Audio DVDs and future supports such as HD DVDs and Blu-Ray, protected by technical and usually anti-copying measures Technical protection measures for virtual and physical goods Technical protection measures (TPMs) consist of encoding contents with the help of encryption algorithms and secret and/or public keys. TPMs are related to access protection techniques (conditional access to television, CDs and DVDs) and content protection via the intrication of a tattoo or watermark . Most contents can be encrypted including television programmes via settop boxes and/or chip cards, optical supports (CDs, DVDs, and now SACDs, Audio DVDs etc.) or virtual distribution via streaming or downloading. TPMs, access management and tattooing tools do not ensure rights management, but offer a necessary framework that rights management tools can be incorporated into.

Access control This usually involves a set-top box incorporating a system that makes it possible to transmit rights (bouquets of channels to which a subscription has been taken out, for example) and to invoice eventual uses on a pay-per-view and video-on-demand basis. Initially video sequences could only be displayed on television sets or recorded using a video recorder. The growing possibility of interconnecting entertainment equipment (TV sets, PCs, mobile telephones, set-top boxes, PVRs, games consoles, MP3 players, internet access, video cameras, Hi-Fi stereos etc.) is creating anxiety on the part of content providers and broadcasters.

DRM (Digital Right Management) DRM concerns the management of copies of virtual goods. It goes far beyond simple anti-copying protection, but can notably make it possible to identify a work, rights holders and authorised uses, as well as making it possible to describe related rights such as simple and multiple playing, recording, simple and multiple copying, copying limited to selected pieces of equipment etc. It enables rights distribution and the collection of corresponding data (a function that it shares with access control). DRM can also be linked to access control. It can also be combined with a technical protection measure.

In view of the various technical solutions on offer, as well as their implications for users, choices are far from fixed. A growing number of industry consortia between technology producers (Thomson, Philips, HP, NDS and many others) are offering solutions to different aspects of DRM, or taking part in various alliances.

Unlike the organisations that aim to define protection systems, the Personal Technology Freedom Coalition unites most of the technology companies and public bodies, and notably aims to question the most restrictive measures. DRM and virtual content distribution DRM

Table of Contents

Introduction

1. Technical protection and legal background

1.1. Technology update

1.1.1. Technical protection measures (TPM)

Cryptosystems

Watermarking and tattooing


Medium access management: the disc

1.1.2. Digital Rights Management

Programming language: an indispensable standard

Copyright integration


Application of rights and management of digital copying
of artistic works

1.2. Legal background

1.2.1. The protection of artists and their works


“Artists’ rights

1.2.2. International legal frameworks

WIPO (World Intellectual Property Organization) treaties

The Digital Millennium Copyright Act (DMCA)

The European Union Copyright Directive (EUCD

2. DRM players

2.1. Players present

2.1.1. Content providers

2.1.2. Technical protection measure (TPM) and DRM providers

2.1.3. Rights aggregators or licence managers

2.1.4. Distributors

2.1.5. Consumer electronic manufacturers


2.1.6. IT manufacturers

42

2.2. The value chain

2.3. Monographs

2.3.1. Groups and consortia

Blu-Ray Disc Association

Content Reference Forum

Coral

OMA DRM

52

Trusted Computing Group

2.3.2. Companies

Adobe Systems Incorporated

Science

End2End

Info2clear InterTrust Technologies Corporation

Macrovision
Microsoft

DRM and virtual content distribution


New Digital System (NDS) Overdrive Philips
Electronics

Real
Networks RSA Security

SealedMedia Inc SunnComm VeriSign

2.4. Overview

2.4.1. Industry players’ solutions


2.4.2. The activity of consortia

3. Analysis and outlook for content distribution

3.1. Usages and the market

3.1.1. New forms of cultural goods consumption


The emergence of digital usages

The age of nomadic usage and mobility

Digital entertainment and mobile devices

3.1.2. The case of the virtual music distribution
market

Forms of market structure


Composition of the offering

The business model

Legal distribution on a peer-to-peer basis


3.1.3. Other virtual distribution markets

Virtual video games distribution: a slow take-
off

Virtual distribution: the missing major


3.2. DRM and content distribution, a key coupling

3.2.1. Players’ strategy: service, DRM and codecs


DRM at the heart of virtual distribution
strategies
DRM interoperability: industry incompatibility!


Are codecs and DRM indissociables


Various rights


Functioning of the iTunes Music Store protection system

3.2.2. The case of the mobile
telephone 3.2.3.
Audiovisual programme protection and rights management

Access control and domestic networks

The broadcast flag The protection technologies listed
below had been registered with and approved by

the FCC in August 2004:

3.3. Outlook and stakes

3.3.1. Stakes for users

Accepting DRM

The end of private copying

Interoperability

A regulatory body for new usages

3.3.2. The stakes for content providers

Solvency of
demand


Not abandoning content distribution Consolidating a
favourable business
model

DRM and virtual content distribution

Rethinking or transposing a commercial policy to fixed
or mobile internet

Rethinking or retaining media chronology

3.3.3. Stakes for technology providers Proving the
effectiveness of existing offerings Developing a
distribution activity Adapting DRM systems to new,
nomadic usages

3.3.4. Stakes for online retailers/distributors

Making existing offerings profitable

Optical medium versus virtualisation DRM interoperability
3.3.5. What are the stakes for consumer electronics?
Implications related to the incorporation of TPMs in
equipment Industry organisations
Ordering and More Information
Price and Delivery Options



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