Music On The InternetKeith Hill - Strategy & Development Manager

New Technology Division

Presentation Summary

• About MCPS, PRS and the New Technology Division

• The Requirements for the Management & Protection of Rights in Electronic Commerce

• IMPRIMATUR Project• MusicTrial.com

Introducing The New Technology Division...

• Unique Research & Development team

• Established in October ‘97

• Identifies ‘technology’ threats and opportunities to music rights holders

• Three streams of research….– New delivery mechanisms, including electronic

and physical media– Evaluating new licensing schemes to support

these delivery mechanisms– Requirements for rights management and

protection

Introducing The New Technology Division...

Requirements for Rights Management & Protection

• Develop an ECMS (Electronic Copyright Management System)

• New standards for communicating information– ISWC (International Standard Work Code)– Interested Parties– Metadata (information about information)– Searching & identifying digital content

• Automated transactions– licensing– royalty payments (electronic payment)– monitoring & tracking of use

• Management & Protection of Digital Content– Embedded rights information– Watermarking and encryption– Certification

Requirements for Rights Management & Protection

IntellectualMultimediaPropertyRightsModel AndTerminology forUniversalReference

Background

• European Commission funded research project

• Part of the DGIII ESPRIT 1 programme1 European Strategic Programme in Information Technologies

• 3 years’ duration, starting December 1995

• Follows CITED project (Copyright in Transmitted Electronic Documents)

Background

• Widely regarded as the pioneer for stategic thinking on IPR-related issues

• Conducts high-profile consensus building and information gathering exercises

• Stimulated considerable interest in its business modelling and prototype development

Project Contributors

ALCS (project leaders)CISAC (with MCPS/PRS)IFPIEUSIDIC (Assoc. of European Information Users & Providers)IMA (Interactive Multimedia Association)TELES GmbH (ISDN solutions)

Telia AB, Multimedia Division (Sweden)

BertelsmannBritish LibraryTagishDigiCashUniversity of Florence (Dept. of Electrical Engineering)Imperial College, LondonUniversity of Amsterdam (Institute for Information Law)

PARTNERSPARTNERSPARTNERSPARTNERS ASSOC. PARTNERSASSOC. PARTNERSASSOC. PARTNERSASSOC. PARTNERS

Objectives

To devise and recommend processesTo devise and recommend processes to protect and trade all types of intellectual property

To devise and recommend processes to protect and trade all types of intellectual property so that rights are respected

To devise and recommend processes to protect and trade all types of intellectual property so that rights are respected while the needs of individual users are met.

Processes• Creation identification

• Content Protection

• Digital payment systems

• Monitoring & tracking of usage

• Licensing transactions

• Legal acquisition and privacy

• Integrated ECMS (Electronic Copyright Management Systems)

Methodology

• Consensus building from SIGs

• IMPRIMATUR-staged Fora & Workshops• Integration with other projects (CIS, MPEG-4, and

other EC Projects)

Gather information on the impact of multimedia IPRs in four core sectors: Business, Technology,

Standards and Legal by:

Consensus Fora• Nov 96, London

Forum on Privacy, Liability and Consumer Rights

• May 97, StockholmForum on IPR business models and recommendations for ECMS functionality

• Oct 97, AmsterdamForum on Rights and Exceptions

• July 98, London Contracts, Copyright and the Internet• Nov 98, Munich Forum on Standardisation Processes

IntellectualMultimediaPropertyRightsModel AndTerminology forUniversalReference

IntellectualMultimediaPropertyRightsModel AndTerminology forUniversalReference

• Present complex business scenarios

• Represent multi-dimensional layers

• Separates ‘Actors’ and their ‘Roles’

• A tool to map ‘physical’ and ‘virtual’ environments

Why A Business Model?

Constructing The Business Model

• Define the different roles (or entities)

• Attributes

• Relationships

• Transactions

Creator Creation Provider Unique Number Issuer Rights Holder IPR Database

Media DistributorPurchaserBankCertification AuthorityMonitoring Service

Provider

Media DistributorPurchaserBankCertification AuthorityMonitoring Service

Provider

Business Model Roles

Business Model Attributes• The Bank must support electronic payment

transactions• International standard numbering conventions

can be embedded into digital creations to manage identification

• One ‘actor’ can play one or more roles• The model provides the flexibility to manage

licensing transactions between different roles

Business Model Transactions

• Distribution of Digital Creations

• Allocation of unique numbers to Creations

• Electronic payments

• Licensing transactions

• Reporting IPR information

• Certification keys

• Monitoring usage

Creator

UniqueNumberIssuer

Rightsholder

CreationProvider

MediaDistributor

Purchaser

IPRDatabase

MonitoringServiceProvider

CertificationAuthority

Crea

tion

Desc

riptio

n

Uniq

ue N

umbe

rValue

Cond

ition

al L

icen

ce

Appl

icat

ion

for L

icen

ce

Assignment of Rights

CreationCreation P D

Check PIdentity

Creation

Curre

nt R

ight

s ho

lder

and

Paym

ent d

etai

ls

Log

Value

Check MD

Authorisation

IPR Info

Check ID of M

D

Log

$

$ $ $ $

N

Legend:Imprint of Purchaser ID

Imprint of Media Distributor ID

Imprint of Unique Number

Role exchanges Value with Bank$

P

D

N

Valu

e

IPR Info

IPR Info

The Demonstrator Trials

• Designed to demonstrate the trading of multimedia creations

• Supported by an ECMS architecture• Secure environment for e-commerce• Opportunity to ‘prototype’ online

licensing transactions• Current Trials examine literary works,

photographic images and music

INTRODUCING THE IMPRIMATUR MUSIC TRIAL

LIQUID AUDIO

About Liquid Audio

• A leading company specialising in online music distribution

• Founded in May ‘96• Over $8 million in Venture Financing

• Experienced team of audio, music and software professionals

• Exclusive Dolby licence

Purpose of the Music Trial

• Focus on the operational processes required to licence musical works in a digital trading environment

• Evaluate automated licence application processing and responses

• Develop an application and approval procedure which is entirely Web compliant

Systems Architecture for the Trial

• Based on the IMPRIMATUR Business Model design

• MCPS/PRS support the The Unique Number Issuer, IPR Database and Licensing Database

• Creation Provider, Media Distributor, Purchaser and Certification Authority components to be substituted with Liquid Audio’s software

Liquifier: Publish to Server

Liquid MusicServerTM

• Storage of audio and media data

• ‘Virtual’ music shop• Security, copyright and

copy protection • ‘Real Time Protocol’ -

based streaming Internet music system

• Monitoring usage

Browse Listen

Purchase

Liquid MusicPlayerTM • Web compliant client for

browsing sound and images• Enables preview and

purchase of recordings • State-of-the-art data

compression and streaming technology

• Encryption for anti-copy protection

PC, Mac

Unix (Sun, SGI), NT

Liquid MusicServer

InternetMastering &

Encoding

Liquifier

PC, Mac

CDRecorder

Anti-copy

Preview (Stream) Purchase (Download)

PersonalWatermarking

CopyrightLicensing &Encryption

ListenPurchaseMake CDs

Liquid MusicPlayer

CD

DatabaseConnectivity

Anti-Piracy

WatermarkingAnti-

Piracy

Dolby®

Digital

Music FileEncryption

InternetCommerce

Music FileDecryptionLiquid Registration

Centre

Register MusicPlayersManage Certificates

Generate Public/Private Keys

Liquid Audio Music-On-Demand System

Licensing Musical Works in the Trial

• Small number of sound recordings (50) provided for the purpose of the trial

• Recordings of works selected which are owned 100% worldwide by MCPS and PRS members

• Clearing both performing and mechanical rights licences

• Makes no assumptions about future terms, conditions and royalties

Opportunities

• Evaluate the business and systems of a leading online music distribution company

• Assess the viability for conducting ‘near time’ licensing

• Assess scaleability of licensing systems required to match volume of transactions

• Research requirements to provide collective rights management in a digital trading environment