the carrot or the stick: opportunities and challenges in rights technologies

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The Carrot or the Stick: Opportunities and Challenges in Rights Technologies Bill Rosenblatt November 4, 2013

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Keynote presentation given at International Copyright Technology Conference (ICOTEC), Nov. 4, 2013, Seoul, Republic of Korea

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Page 1: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

The Carrot or the Stick:Opportunities and Challenges in Rights

Technologies

Bill Rosenblatt

November 4, 2013

Page 2: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

About GiantSteps

Consultancy focused on content & rights technologies

Clients include copyright owners, service providers, technology vendors

Advisory work for public policy and standards bodies on digital copyright

Page 3: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Rights Technology Innovation in Asia-Pacific

Sources: OECD, IMFDevice Producers Content Producers

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Gross Expenditureon R&D (USD Billion)

Rights TechnologiesOutput (researchpapers)

Rights TechnologiesR&D Index

Page 4: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Carrots and Sticks

Page 5: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Carrots and Sticks and Rights Technologies

Creative content models

Licensing automation

Encryption (DRM, CAS)

Piracy monitoring

Upload filtering

Page 6: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Technologies

Page 7: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Encryption Technologies

DRM– Generally refers to encrypted downloaded files

CAS– Encryption of streams/signals over managed network

Stream encryption– Over unmanaged network (Internet)

Page 8: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Where Has Encryption Succeeded?

Time-bounded access

Content bundled with devices

Managing risk during transition from physical to digital

Reducing personal infringement (“oversharing”)

Page 9: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Digital Transitions and DRM

DRM manages risk in new digital markets– Risk of infringement by tech-savvy early adopters– Protection of service providers’ investment

When leader emerges, DRM becomes less necessary– Service providers’ investments recouped– Inconvenience of leaving leader’s ecosystem is like form of DRM– And competitors will respond with DRM-free anyway

Case in point: music downloads

E-books may be next

Page 10: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Time-Bounded Models

Subscription music

Subscription over the top video on demand

Library e-book lending

E-textbook rentals

Page 11: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Bundling Content with Devices

Original bundled network/device model: Managed networks, CAS

Mobile phones with free music downloads

Subsidized e-book “lending”: Amazon Prime Kindle Owners’ Lending Library

Page 12: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Where Has Encryption Failed?

Legacy emulations if kept around too long:DRM for music downloads

New time-based models if introduced too early:e-book rentals

Bundling content with unpopular devices:Nokia & Sony Ericsson music services

Page 13: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Content Identification

Identify content on download or “in the wild”Take action:

– Flag infringement– Block upload– Monetize with contextual ad– Suggest legal alternative

Techniques– Fingerprinting– Watermarking

Page 14: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Content Identification Techniques

Watermarking

Embed invisible/inaudible data before or during distribution

Can be up to a few dozen bytes

Software to detect watermarks in files

Can contain user information

Content must be watermarked

Fingerprinting

No change to content required

Run sophisticated algorithm to compute “fingerprint” of file

Match against fingerprint database

Does not contain information

Works with all content

Page 15: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Where Has Content Identification Succeeded?

Identifying music & offering buy opportunity (F)

Monetizing uploads with contextual ads (F)

Second screen apps (F or W)

“Social DRM” for e-books (W)

Extra protection with DRM for high-value video (W)

Piracy monitoring (mostly F)

Filtering file uploads (F)

Page 16: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Licensing Automation:Identifiers & Rights Registries

Online database of rights information for content

Standard identifiers for content

Problem badly needs to be solved

Page 17: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Licensing Automation Challenges

Identifiers: what do they identify? IP (abstract), product, whole vs. part

Machine-readable rights descriptions

Registry ownership, governance, maintenance

Private sector progress vs. antitrust concerns

Fragmentation by media type and geography

Page 18: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Too Many Standards

Music

ISRC

ISWC

GRid

Publishing

ISBN

ISSN

DOI

Video

ISAN

EIDR

UMID

General

URN

URI

Handle

XRML

MPEG REL

ODRL

RightsML (news)

CC REL (Creative Commons)

PLUS (images)

PRISM RL (periodicals)

Identifiers Rights Description Languages

Page 19: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

ID/Registry Initiatives

Public Sector/Non-profit

Global Repertoire Database (music)

International Music Registry (WIPO)

UK Copyright Hub

Copyright Data Clearinghouse (Japan, music)

Korean Copyright Exchange

Private Sector

ImageIRC – Getty Images

Book Rights Registry – Google

Page 20: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Missed Opportunity: Book Rights Registry

Book Rights Registry

PublishersPublishers

Publishers

Service Providers

Metadata &Rights

Metadata &Rights

Content

Content

Metadata,Rights,

PaymentsPayments

Payments

LibrariesLibraries

Libraries

Content

Page 21: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Opportunities

Page 22: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Economic Incentives

Economics are the primary issue

Underlying economics of rights technologies:– Copyright owners benefit – Downstream entities bear much of the cost

Strategies:– Lower the costs– Turn sticks into carrots

Page 23: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Lower the Costs

Explore lightweight mechanisms to encourage widespread adoption

Instead of “arms race,” match security strength to user behavior and economic realities

Rely on anticircumvention laws in many countries

Develop policies that spread costs equitably throughout content value chain

Page 24: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Convert Sticks to Carrots

Find a behavior that could be infringing

Find someone who benefits from it

Track and monetize the behavior

Best example:

Page 25: The Carrot or the Stick: Opportunities and Challenges in Rights Technologies

Thank You

Bill RosenblattGiantSteps Media Technology Strategies

www.giantstepsmts.com

[email protected]

Blog: copyrightandtechnology.com

Twitter: @copyrightandtec

+1 212 956 1045

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