the trajectory of drm technologies

41
Slide 1 Giant Steps Media Technology Strategies © 2009 1 The Trajectory of DRM Technologies: Past, Present, and Future Bill Rosenblatt GiantSteps Media Technology Strategies +1 212 956 1045 [email protected] www.giantstepsmts.com

Upload: giantsteps-media-technology-strategies

Post on 13-Jan-2015

1.901 views

Category:

Technology


1 download

DESCRIPTION

Keynote presentation at ODRL/Virtual Goods Workshop, September 2009, Nancy, France. Discussion of the past, present, and future of DRM and other rights technologies. Evaluation of DRM according to the four factors from Lawrence Lessig's book "Code and Other Laws of Cyberspace". Predictions of whether "classic DRM" has a future.

TRANSCRIPT

Page 1: The Trajectory Of DRM Technologies

Slide 1

GiantStepsMedia Technology Strategies© 2009 1

The Trajectory of DRM Technologies: Past, Present, and Future

Bill Rosenblatt

GiantSteps Media Technology Strategies

+1 212 956 1045

[email protected]

www.giantstepsmts.com

Page 2: The Trajectory Of DRM Technologies

Slide 2

GiantStepsMedia Technology Strategies© 2009 2

Outline

How DRM technologies developed

Factors influencing their evolution– Lessig’s 4 factors

The current state

Possibilities for the future

Page 3: The Trajectory Of DRM Technologies

Slide 3

GiantStepsMedia Technology Strategies© 2009 3

How DRM Technologies Developed

Page 4: The Trajectory Of DRM Technologies

Slide 4

GiantStepsMedia Technology Strategies© 2009 4

The Birth of DRM: Mid-1990s

Conference: Technological Strategies for Protecting Intellectual Property in the Networked Multimedia Environment, late 1993, Washington DC– Sponsored by Coalition for Networked Information, Interactive

Multimedia Association, MIT, and Harvard Kennedy School of Government

White Paper: Mark Stefik, Xerox PARC, Letting Loose the Light: Igniting Commerce in Electronic Publication, 1994– Appears as chapter in Internet Dreams, MIT Press, 1996

First important patent applications filed

Page 5: The Trajectory Of DRM Technologies

Slide 5

GiantStepsMedia Technology Strategies© 2009 5

Early Technologies

CD-ROM Protection (mid-90s)

CD-MAX

CrypKey

InfoSafe

TestDrive

TTR

1996-1997

DeskGate

Digital River IBM Cryptolope

EPR/InterTrust DigiBox

Liquid Audio

ZipLock (Portland Software)

Page 6: The Trajectory Of DRM Technologies

Slide 6

GiantStepsMedia Technology Strategies© 2009 6

Early Technologies

1998 DMOD

FileOpen Greenleaf

MediaDNA

NetQuartz

Phocis

Preview Systems

RightsMarket (TragoeS)

Softlock

ViaTech

1999 Alchemedia

Authentica (now EMC) ContentGuard (Xerox)

Infraworks (now Liquid Machines)

NetActive

Perimele

PublishOne

SDC (now Packet Video) VYou

Page 7: The Trajectory Of DRM Technologies

Slide 7

GiantStepsMedia Technology Strategies© 2009 7

How Were These Sold?

Legal dept: Make the Internet safe for your content– Print documents -> protected PDFs– CDs -> digital music files

Marketing: Enable new business models for content– Pay per view– Subscription– Site licenses

Page 8: The Trajectory Of DRM Technologies

Slide 8

GiantStepsMedia Technology Strategies© 2009 8

What Happened?

Bubble burst

Content owners would not pay, and/orvendors charged too much

Business models were not developed or marketed

DRM became subsidiary to platform control(formats, codecs, players)

Page 9: The Trajectory Of DRM Technologies

Slide 9

GiantStepsMedia Technology Strategies© 2009 9

Second Bubble ca. 2005:Mobile

OMA DRM

CoreMedia

Viaccess

Beep Science

Lockstream/Irdeto

Access

NDS

Discretix

Etc.

Others

SDC

Melodeo

Teruten

INKA (Netsync)

Page 10: The Trajectory Of DRM Technologies

Slide 10

GiantStepsMedia Technology Strategies© 2009 10

0

2

4

6

8

10

12

14

16

1h99 2h99 1h00 2h00 1h01 2h01 1h02 2h02 … 1h04 2h04 2h05 … 2h07

A Pseudo-Scientific DRM Market Barometer: Vendors on Trade Show Floors

Page 11: The Trajectory Of DRM Technologies

Slide 11

GiantStepsMedia Technology Strategies© 2009 11

The DRM Scene Today:Music

Internet: DRM confined to subscription services– E.g. Napster, Rhapsody– DRMs: mostly Microsoft WM DRM 10/11

Mobile: various DRM-based models– Device/music bundles: Nokia Comes With Music,

Sony Ericsson PlayNow Plus– Subscription models– Paid downloads– DRMs: OMA DRM, Microsoft WM DRM,

Microsoft PlayReady, SDC

Page 12: The Trajectory Of DRM Technologies

Slide 12

GiantStepsMedia Technology Strategies© 2009 12

The DRM Scene Today:Video

Internet: download and rental services– Apple iTunes: FairPlay– Blockbuster, CinemaNow, others: WM DRM

Mobile: digital broadcast, WiFi– OMA BCAST Profile

IPTV, TelcoTV, Digital Cable– CA vendors (Irdeto, Nagra, NDS, etc.)– Marlin– Widevine– Verimatrix– SecureMedia

Page 13: The Trajectory Of DRM Technologies

Slide 13

GiantStepsMedia Technology Strategies© 2009 13

The DRM Scene Today:E-Books

Amazon– Mobipocket DRM– Kindle, iPhone, other portables

EReader– Partnership with Barnes & Noble, #1 US book retailer– Proprietary DRM– PC, Mac, iPhone, other portables

Adobe– Sony, IREX, Plastic Logic, other e-book devices– Content Server DRM– PC, Mac, iPhone

Page 14: The Trajectory Of DRM Technologies

Slide 14

GiantStepsMedia Technology Strategies© 2009 14

The DRM Scene Today:Enterprise

Corporate/institutional applications

Became a distinct subfield in ~2003

Now considered part of Content Management market

Leading vendors:– Microsoft & partners– EMC (Authentica)– Oracle (SealedMedia)– Adobe

Page 15: The Trajectory Of DRM Technologies

Slide 15

GiantStepsMedia Technology Strategies© 2009 15

Pioneering DRMs that Didn’t Survive

Intertrust– Digibox/InterRightsPoint– RightsSystem

IBM– infoMarket– EMMS

Page 16: The Trajectory Of DRM Technologies

Slide 16

GiantStepsMedia Technology Strategies© 2009 16

Larry Lessig’s Four Factors*

Architecture (technology)

Norms (behaviors)

Law

Market (economics)

*Code and Other Laws of Cyberspace, 1999, pp. 88-90

Page 17: The Trajectory Of DRM Technologies

Slide 17

GiantStepsMedia Technology Strategies© 2009 17

Architecture

Technology Enablers

File encryption

Network connectivity & bandwidth

License management

Rule specifications & RELs

Criteria

Ease of use

Maintenance of user rights & expectations

Security effectiveness

Low support costs

Page 18: The Trajectory Of DRM Technologies

Slide 18

GiantStepsMedia Technology Strategies© 2009 18

Norms

Sources of Norms

Popular online tool usage patterns

Trust

Opinions of thought leaders

Motivations of hackers

Criteria

Necessity of DRM in the first place

Height of barriers

Page 19: The Trajectory Of DRM Technologies

Slide 19

GiantStepsMedia Technology Strategies© 2009 19

Law

Laws

Copyright infringement liability

Content usage rights

Anticircumvention

Criteria

Technological implementability

User comprehensibility

Balance of burden

Effect on legitimate uses of technology and innovation

Page 20: The Trajectory Of DRM Technologies

Slide 20

GiantStepsMedia Technology Strategies© 2009 20

Market

Economic Factors

Compensation for content creators

Investment in technology development and R&D

Consumer value and choice

The pull of free

Criteria

Alignment of economic incentives

Maximization of value to consumer through alternative offers

Maximization of value to publisher despite alternative sources

Page 21: The Trajectory Of DRM Technologies

Slide 21

GiantStepsMedia Technology Strategies© 2009 21

Factors Against DRM Success

Market: – Economic incentives misaligned

Norms: – Users don’t see value in choices of offers– Norms distorted by architecture (technology)

Architecture: – Technological innovation hampered

Laws:– Laws not amenable to technological implementation

Page 22: The Trajectory Of DRM Technologies

Slide 22

GiantStepsMedia Technology Strategies© 2009 22

Economic Incentives Misaligned

Content owners demand it but will not pay for it– Despite high expenditures on “anti-piracy services”– Claim that content protection is responsibility of technology

vendors who want to offer access to their content

CE vendors use it to suit their own purposes– Platform lock-in

Consumers have no direct say in deliberations– Only indirect market forces

In the end, music companies got what they paid for

Page 23: The Trajectory Of DRM Technologies

Slide 23

GiantStepsMedia Technology Strategies© 2009 23

Consumers Don’t See Value in Choices of Offers

Expensive to educate consumers about unfamiliar offerings– Apple had huge marketing budget to educate about

unbundled albums– But Rhapsody, Napster, etc. didn’t educate sufficiently

about subscription services

Focus is on getting rights equivalent to offline content– Perception: pay == ownership && free == radio;

therefore the only improvement is free == ownership

Page 24: The Trajectory Of DRM Technologies

Slide 24

GiantStepsMedia Technology Strategies© 2009 24

Users Influenced towards Infringing 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 way

Notion that DRM == Big Media == evil

Romanticism & rationalization of hacker/pirate ethic

Page 25: The Trajectory Of DRM Technologies

Slide 25

GiantStepsMedia Technology Strategies© 2009 25

Technological Innovation Hampered

Lack of revenue for DRM vendors

Venture capital scared off– Bad press– Non-sexy topic

Researchers scared off– RIAA actions against Prof. Ed Felten in 1999– DRM research “politically incorrect” in US

Page 26: The Trajectory Of DRM Technologies

Slide 26

GiantStepsMedia Technology Strategies© 2009 26

Laws Not Amenable to Technological Implementation

Fair Use/Fair Deailing laws notoriously hard to automate– EU Private Copying less so

Privacy and due process are important but become obstacles– French Loi HADOPI

Anticircumvention laws reduce incentive to develop effective technologies– 1993-6 accommodation between content and telecoms industries– WIPO Copyright Treaty, EU Copyright Directive, US DMCA– Liability solely on the hacker– Important US appeals court case: Universal v. Reimerdes, 2000

Page 27: The Trajectory Of DRM Technologies

Slide 27

GiantStepsMedia Technology Strategies© 2009 27

A Few Success Stories

Apple FairPlay

“Cheap and dirty” DRM

Component in first successful digital music application

Educated consumers about unbundling of albums

Tightly tied to hardware and software, no boundary glitches

Lesson: Hardware vendor discovers how to benefit from DRM

Pay TV Digital CAS

Cable operators want to protect signals from theft

“Walled garden” systems (no PCs)

Limited alternatives

Lesson: Alignment of economic incentives

Page 28: The Trajectory Of DRM Technologies

Slide 28

GiantStepsMedia Technology Strategies© 2009 28

A Few Success Stories

OverDrive E-Book Lending Adobe Content Server supports e-

book lending

E-Book lending expands power of library services despite lack of marketing ability

Small market well served by single vendor, encourages efficiency

Lesson: True expansion of consumer choices through DRM

AACS (Blu-ray) Designed to address problems

with CSS for DVDs

Costlier DRM in costlier product

Graceful hack recovery

Impact of hacks overstated in press

DVD industry forced to improve functionality

Lesson: Better DRM costs more money

Page 29: The Trajectory Of DRM Technologies

Slide 29

GiantStepsMedia Technology Strategies© 2009 29

Status of Rights Technologies Today

File encryption

License management

Rule specifications & RELs

Page 30: The Trajectory Of DRM Technologies

Slide 30

GiantStepsMedia Technology Strategies© 2009 30

Encryption

Crypto algorithms were never an issue

Cost is the issue– Key management schemes– Hardware vs. software key storage

Software key management has gotten better– Graceful failure e.g. AACS

Page 31: The Trajectory Of DRM Technologies

Slide 31

GiantStepsMedia Technology Strategies© 2009 31

License Management

Flexibility, yes

Transparency, no

Page 32: The Trajectory Of DRM Technologies

Slide 32

GiantStepsMedia Technology Strategies© 2009 32

Rights Specifications/RELs

Technology applicable outside of encryption

Complex starting point was probably necessary– Emulate offline/legacy licensing models

But didn’t work– XrML designed by engineers for engineers

Market needed time to find opportunities for simplicity– Remember ICE? Me neither.– Remember RSS? Of course.

Page 33: The Trajectory Of DRM Technologies

Slide 33

GiantStepsMedia Technology Strategies© 2009 33

Future Possibilities

Page 34: The Trajectory Of DRM Technologies

Slide 34

GiantStepsMedia Technology Strategies© 2009 34

Grow from Simplicity

Emulation of legacy models is doomed to failure– Consumer expectations– Technological complexity– Misaligned economics

New business models based on simpler technology can succeed– Create models to fit new opportunities– Build complexity from the ground up instead

Page 35: The Trajectory Of DRM Technologies

Slide 35

GiantStepsMedia Technology Strategies© 2009 35

UGC Will Lead the Way

YouTube, DailyMotion, Flickr, Scribd, MySpace are the 0.X models

Volume dwarfs that of commercial content

UGC needs rights management too

Exposure is important, but so are monetization and use tracking

“Profit from abundance” is not inconsistent with rights management

Ultimately, “commercial content” = “marketing investment”

Page 36: The Trajectory Of DRM Technologies

Slide 36

GiantStepsMedia Technology Strategies© 2009 36

Bet on These Technologies

Rights languages

Content identification

Connected devices and streaming

Page 37: The Trajectory Of DRM Technologies

Slide 37

GiantStepsMedia Technology Strategies© 2009 37

Rights Languages

Creative Commons– When services use it to make money, it’s no longer a

“religion”– Note how “free” became “open source”– Commercial content owners beginning to look at it seriously

ODRL– Moving beyond encryption applications– Making all the right moves: subsetting, PLUS, CC

Page 38: The Trajectory Of DRM Technologies

Slide 38

GiantStepsMedia Technology Strategies© 2009 38

Content Identification

Fingerprinting

Easy to implement now

Works with content “as is” Difficult at the ISP level

Poor integration with rights languages

Not much benefit from standardization

Too many vendors, market ripe for consolidation

Watermarking

Requires “connecting the dots” Requires insertion

Easier at the ISP level

Good integration with rights languages

Would benefit greatly from standardization

Market has already consolidated

Page 39: The Trajectory Of DRM Technologies

Slide 39

GiantStepsMedia Technology Strategies© 2009 39

Connected Devices and Streaming

License management becomes much easier– No slave device transfer issues

Encryption becomes less disruptive

Consumer expectations shift away from ownership– Services no longer devolve to “MP3 delivery” model

Page 40: The Trajectory Of DRM Technologies

Slide 40

GiantStepsMedia Technology Strategies© 2009 40

Will Classic DRM Survive?

Yes, where it supports new content models– Subscription– Personal network boundary setting– Hardware or service provider boundary setting

Page 41: The Trajectory Of DRM Technologies

Slide 41

GiantStepsMedia Technology Strategies© 2009 41

Bill RosenblattGiantSteps Media Technology Strategies

[email protected]+1 212 956 1045

www.giantstepsmts.com