Copyright and TechnologyCopyright and TechnologyLondon 2012

19 June 2012

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Opening Remarks

Bill RosenblattGiantSteps Media Technology Strategies

www giantstepsmts comwww.giantstepsmts.com

billr@giantstepsmts.com

Twitter: @copyrightandtec

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+1 212 956 1045

www.giantstepsmts.com

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www.copyrightandtechnology.com

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www.musically.com

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Twitter:

#ctlondon2012

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American Conference Jargon

American British

Attendee Delegate

Seat PlaceSeat Place

Booth Stand

Cocktail party Drinks reception

Butts in seats Bums in seatsButts in seats Bums in seats

Ripoff VAT

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What Are We Discussing Today?

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Interface between Copyright and T h lTechnology

Digital technology used to make and distribute copies Digital technology used to make and distribute copies at virtually no cost

C i ht i d t ll i t l t dCopyright industry responses, all interrelated:– Legal

Technological– Technological– Economic – EducationEducation

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Technologies to Affect Copyright

Content access controlContent access control– DRM– Conditional AccessConditional Access

Content identification– FilteringFiltering– License/royalty management

Rights registriesRights registries

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Legal Concepts that Affect These T h l iTechnologies

Fair DealingFair Dealing

Exhaustion

Secondary infringement liability

Network service provider liabilityp y

Anticircumvention legislation

Blanket licensing of contentBlanket licensing of content

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Technologies

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Digital Rights Management

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DRM is a “troubled”* technology…

Why?

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*Jaron Lanier, You Are Not a Gadget, 2010

Factors Inhibiting DRM Success*

Market: Architecture: Market: – Economic incentives

misaligned

Architecture: – Technological innovation

hampered– Commercial content must

compete with free/illegal

Norms: Laws: Norms: – Users don’t see value in

choices of offers

Laws:– Laws not amenable to

technological implementation– Norms distorted by

architecture (technology)

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*Based on L. Lessig, Code and Other Laws of Cyberspace, 1999, pp. 88-90

Market:E i I ti Mi li dEconomic Incentives Misaligned

Content owners demand DRM but rarely pay for itContent owners demand DRM but rarely pay for it

Device makers and network operators use it to suit th i their own purposes

Consumers have only indirect market influence

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Norms:C D ’t Y t S V l i N M d lConsumers Don’t Yet See Value in New Models

Record Store

Radio

gacy

ul

atio

ns

Bookstore

VCRLeEm

u

Paid Subscription VOD

Free/Limited VOD

New

,gi

tal N

ativ

e

0 10 20 30 40 50 60 70 80 90 100

On Demand Music

Dig

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Million U.S. Users (estimated)

Norms:U I fl d t d I f i i B h iUsers Influenced towards Infringing Behavior

Definition of DRM commandeered by the pressDefinition of DRM commandeered by the press– Narrower than original definitions– Yet broadened to apply to any technology that restricts user Yet broadened to apply to any technology that restricts user

behavior in any way1

Notion that DRM Big Media Evil/ObsoleteNotion that DRM Big Media Evil/Obsolete

Romanticism & rationalization of hacker/pirate ethic

“L d f th Cl d”2 t th “f d ” PR3“Lords of the Cloud”2 get the “free and open” PR3

1C. Doctorow, M. Masnick, etc.2J L i Y A N t G d t

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2Jaron Lanier, You Are Not a Gadget3Robert Levine, Free Ride

Architecture:T h l i l I ti H dTechnological Innovation HamperedLack of revenue for DRM vendorsLack of revenue for DRM vendors

Venture capital scared offB d – Bad press

– Non-sexy topic

R h d ffResearchers scared off– RIAA actions against Prof. Ed Felten in 1999

DRM research “politically incorrect” in U S– DRM research politically incorrect in U.S.

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The Rights Technologies R&D Imbalance

60

70

400

450

40

50

250

300

350

2009 Gross Expen‐

20

30

150

200

ditures on R&D ($Billion)

Rights Technologies R&D Output 

10

20

50

100

p(Research Papers)

Rights Technology R&D Index

00

S O CDevice Producers Content Producers

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Sources: OECD, IMF

Laws Not Amenable to T h l i l I l t tiTechnological Implementation

Fair Dealing/Fair Use laws not amenable to automation 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 Anticircumvention laws reduce incentive to develop effective technologies; liability solely on the hacker

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Yet DRM Is Alive Today…

Downloads Real Time DeliveryDownloads Real Time Delivery

E-books Yes “Screenshot DRM”(page images)

Music Mobile device “offline listening

d ”

Usually(stream encryption)

mode”Video Yes In most release

windows ( t ti )(stream encryption)

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Will DRM Die?N t Wh It E bl N M d lNot When It Enables New ModelsService investment protectionService investment protection

– Music: iTunes (originally)– E-books: AmazonE books: Amazon– Digital pay TV

Business modelsBusiness models– Subscription music services: Spotify, Deezer, etc– Library e-book lending: OverDrivey g

Subsidized content– Amazon Prime: one e-book at a time “lending”

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g– MuveMusic: unlimited music downloads with phone

Content Identification

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Techniques for Identifying Content

WatermarkingWatermarking

Fingerprinting

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Watermarking

Inserting/embedding data into “noise” portions of Inserting/embedding data into noise portions of image, audio, or video signalInserting invisible data into e-book filesInserting invisible data into e-book filesInserting visible personal info into e-book filesData capacity: typically a few dozen bytesData capacity: typically a few dozen bytesTechnology appeared in mid-to-late 1990s

First for digital images– First for digital images– Audio and video later– PDFs & EPUBs most recent

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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 hashingBased on mathematical concept of hashing– But allows for different files that look/sound the same– Can compensate for certain transformations: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 i ti ” (Att ib t ) d t d b AP27

– 2007: “Text fingerprinting” (Attributor) adopted by AP

Content Identification B i B fitBusiness Benefits

Detecting and deterring unauthorized useDetecting and deterring unauthorized useTracking content usageDiscovery & recommendations

Increasing Internet ad revenueg

Managing assets and integrating systems

Monetizing transformational content usesMonetizing transformational content uses

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Legal Developments

…and their Technical Solutions

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Legal Developments

Network operator liabilityNetwork operator liability

“Free riding”Digital Exhaustion

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Network Operator Liability

Secondary liability (US def’ns)Secondary liability (US def ns)– Contributory: aiding and abetting infringement– Vicarious: “looking the other way” and benefiting from itVicarious: looking the other way and benefiting from it– Inducement: inducing others to infringe as business model

ISP responsibilityISP responsibility– Notice and takedown (US)– Notice and notice (Canada)( )– Graduated Response

(France, South Korea, Taiwan, New Zealand, UK)

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Technical Solutions

FingerprintingFingerprinting

Watermarking

Traffic analysis

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“Free Riding”

Monetizing links to copyrighted contentMonetizing links to copyrighted content

Posting links to illegal content (e.g. in cyberlockers)

Monetizing content appearing in search results

“Cloud sync” services(?)y ( )

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Technical Solutions

Fingerprinting & searchFingerprinting & search

Tagging content with “beacon” metatags – AP hNews

Tagging content with rules for indexing and search results – ACAP

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Exhaustion

If you obtain a copyrighted work legally If you obtain a copyrighted work legally, you can do what you want with it

A li bilit t di it l d l d i lApplicability to digital downloads is unclear

U.S. Copyright Office punted on it in 2001 report

Downloads covered under licenses, not copyright

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Technical Solutions

“Forward and delete” DRM like functionality Forward and delete DRM-like functionality

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”

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Conference Agenda

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Morning

Keynote: Keynote: Eric Walter, General Secretary, HADOPI

Pl S i P li i PiPlenary Session: Policing Piracy

Plenary Session: The Yin and Yang of Piracy Data Collection(sponsored by MarkMonitor)

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Afternoon

Technology Track Law & Policy TrackTechnology Track Content Security

Challenges in Multi-

Law & Policy Track Rights Registries: Bringing

Precision and Efficiency to Challenges in MultiPlatform Distribution

Content Identification:

Precision and Efficiency to Rights Licensing

International Perspectives Content Identification: Progressive Response, Media Measurement and

International Perspectives on Digital Copyright

More

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Thanks to our Sponsors

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Thanks to our Media Sponsors

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And finally…

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Recommended Reading

Robert Levine, Free Ride

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Robert Levine, Free Ride