Copyright, IP Business Models for the TAFE Sector Roger Clarke Chair, AEShareNet Limited Xamax Consultancy, Canberra & Visiting Professor at the A.N.U., the Uni. of Hong Kong and the Cyberspace Law & Policy Centre, U.N.S.W. /EC/IPBusTAFE-0509 {.html,.ppt} TAFE Development Centre, Melbourne 20 September 2005

Copyright, IP Business Models for the TAFE Sector Agenda 1.Contemporary Realities 2.Whats a Business Model 3.Intellectual Property Business Models Outdated Proprietary BMs Proprietary BMs for the Modern Era Open, Sharing BMs 4.Choosing Between Proprietary and Open 5.Implementing an IP Business Model

Copyright, Contemporary Realities The Digital Era Atoms ==>> Bits Internet / Cyberspace Bits go anywhere Peer-to-Peer (P2P) Bits go everywhere Interactive Publishing Bits get used

Copyright, Peer-to-Peer (P2P) P2P is class of applications that take advantage of resources (storage, processing capacity, content, human presence) available at the edge of the Internet Each participating program is both Client and Server and hence each workstation is a host as well, e.g. your music playstation can be a mixer too your PDA can host part of a music catalogue your PC can host part of a music repository

Copyright, P2P Architecture Cooperative Use of Resources at the Edge

Copyright, Conventional Publishing, Desk-Top Publishing,

Copyright, Electronic Publishing, Cross-Media Publishing,

Copyright, Interactive 'ePublishing', 'Bees Around a Honey-Pot'

Copyright, Whats an eBusiness Model? Its an Answer to the Question: Who Pays? For What? To Whom? And Why?

Copyright, A.The Outdated Proprietary IP Business Model Exploit the Monopoly through High Prices Leverage the Monopoly Extend the Brand Cross-Promote Sustain the Monopoly Very Constrained Licensing Technological Protections Lawsuits to stop, and to chill, behaviour: Commercial Violations Single-Purpose Technologies Incitement (Authorisation) Multiply-Usable Technologies Consumption

Copyright, Avenues of Music Industry Fightback Political Copyright Expansionism Criminalisation / Cost Transfer Legal Lawsuits Publicity Technological Digital Rights Management Reduction of the Power at the Edges

Copyright, B.A Sustainable Proprietary Approach for the Music Industry Identify price resistance-points in the various customer-segments i.e. what the market will bear Set prices accordingly (and hence sustain payment morality) Make backlists and new releases available via for-fee P2P channels Discourage and prosecute breaches where the purpose is commercial Take no action over breaches by consumers (esp. time-shifting, format-change, even sharing?) The Evidence Since 2003, Apple iTunes charges USD 0.99/track!? Copyright-Owners get USD 0.70 In 2005, theyre asking for more

Copyright, C.Open, Sharing IP Business Models WHO PAYS? For What? To Whom? And Why? Customers, for the Good/Service Distribution Customers, for Complementary Goods/Services Consultancy, Training, Installation, Customisation, Integration, Audit Providers Third Parties

Copyright, Who Pays? Sometimes, a Fairy Godmother Subsidy Funding from external sources Deprecated as a gift, unless market failure Cross-Subsidy Funding from internal sources Deprecated, claimed to be distortive Portfolio Approach Mutual Cross-Funding from internal sources How business works – cash cows fund the rest

Copyright, Who Pays? FOR WHAT? To Whom? And Why? Goods & Services Value-Added Goods & Services Complementary Goods & Services Infrastructure After-Sales Service Data Information Expertise / Knowledge An Idea in Good Standing Timeliness Quality

Copyright, Who Pays? For What? TO WHOM? And Why? DirectIntermediated Retailer Franchisee Value-Adder Bundler Transaction Aggregator

Copyright, Who Pays? For What? To Whom? AND WHY? Resource Control Switching Costs (capture, lock-in) Perceived Value Cost Advantage Quality Advantage

Copyright, Key Lessons about Open Content Reciprocity is of several kinds: direct and immediate indirect and/or deferred Barter / Exchanges may be open communities, or closed communities Reputation is central Resources from Complementary Services and from Fairy Godmothers

Copyright, Criteria for Selecting Between Modern Proprietary and Open, Sharing Modern Proprietary is a tenable model, provided that a number of conditions hold: a pure for-profit corporation, with shareholders, who are expecting ROI customers expect to pay full price the organisation has unique competency, market leadership and/or high reputation the materials require significant investment

Copyright, Pre-Conditions for Any IP Business Inbound Materials Clearance Check Material Sources Acquire Licences for © Materials Productisation Defined Discrete Deliverable Dependable Appropriate Copyright Licence

Copyright, Open Content Licensing Choices Ownership Exclusivity Sub-Licensing Integrity Protection Entirety Copyright Notice Reproduction Control Permission Use(s) / User(s) Republishing Control Permission Use(s) / User(s) Format(s)/Media Incorporation Tech. Protections Adaptation Control Permission Review Distinguishability Copyright Vesting Usage Territory Purposes Person-Types Fields of Endeavour Liability Management Warranties Indemnities Pricing One-Time Fees Repetitive Fees

Copyright, Categories of Creative Commons Licence

Copyright, Categories of AEShareNet Licence INSTANT LICENCES End-user – E MEDIATED LICENCES Commercial – C Free for Education – FFE Unlocked Content – U Share and Return – S Preserve Integrity – P

Copyright, IP Business Models for the TAFE Sector Roger Clarke Chair, AEShareNet Limited Xamax Consultancy, Canberra & Visiting Professor at the A.N.U., the Uni. of Hong Kong and the Cyberspace Law & Policy Centre, U.N.S.W. /EC/IPBusTAFE-0509 {.html,.ppt} TAFE Development Centre, Melbourne 20 September 2005

Copyright, IP Business Models for the TAFE Sector /EC/IPBusTAFE-0509 {.html,.ppt} 1.Contemporary Realities 2.Whats a Business Model 3.Intellectual Property Business Models Outdated Proprietary BMs Proprietary BMs for the Modern Era Open, Sharing BMs 4.Choosing Between Proprietary and Open 5.Implementing an IP Business Model