1 Managing Rights in a Digital World Sue Kantrowitz, WGBH Susan Erburu Reardon, KCET

2 The Digital Future Is Here Public Broadcasting must: Distribute its content everywhere audiences are – across time, formats and platforms. And brand all uses, all platforms, as coming from the “trusted source” – public broadcasting. “We must transition from broadcast centric to platform agnostic.” David Liroff Engage active viewers who want to edit, copy and share content, not just watch it. Use the advantages of digital media to enhance educational opportunities.

3 The Challenge How to Achieve Expanded audience reach & opportunities for exposure for public broadcasting content With Increased costs and complexity of digital rights clearances Limited sources of funding and financing and uncertain financial return

4 What’s Needed A comprehensive, affordable package of digital rights, permitting: –Distribution across multiple platforms (digital cable, internet, wireless devices) –In a coordinated manner (e.g., “windows” for broadcasts, online streaming and downloads to own or rent, VOD, podcasts, and DVDs, etc.)

5 What are the “Rights” to Digital Content? Must inventory and analyze: Creators/Owners/Sources of Content Performers Collective Bargaining Agreements/Contracts Distributors/Profit Participants Planned Methods and Duration of Use

6 Sources and Availability of Rights Sources:  Actors, Writers, Directors, and Musicians  Composers  Published music (synchronization, performance rights, sound recording)  Underlying literary material, stock footage & still photos  Original produced material Availability:  Rights, payments, and profit participations usually subject to collective bargaining agreements.  Must be negotiated.  Subject to compulsory licenses and negotiated agreements.  Third party owners; must be licensed  Acquisition or license must be negotiated

7 Distribution Platforms TV - broadcast, cable, multicast, satellite Radio - traditional, satellite Internet – streaming audio & video Home Video/DVD Video On Demand (VOD) - free and pay Non-theatrical - in flight Educational Audio-visual International broadcast, cable, satellite Print Audio Podcasts Video Podcasts Off air educational re-record rights Promotion Derivative Works –reversioned content for educational purposes Wireless devices Cellular Phones Telcos

8 The Goal Clearances for each element of a each work, providing: All rights, in all media, now known or hereafter developed, throughout the world, in perpetuity, without limitation or restriction of any kind whatsoever. Since this is not always possible…. What are the issues and alternatives?

9 The Copyright Challenge Copyright - a set of rules, expressed in statutes, case law and international treaties, designed to balance the creative and financial interests of authors with the public’s interest in the free accessibility of ideas, to encourage both “creation” and “dissemination.” With the capabilities of digital media and multiple distribution platforms, how to strike this balance - where everyone is an author and a user - whose rights prevail? Sections 114 and 118 of the Copyright Law contain the compulsory licenses we rely on for the use of visual and musical works in public broadcasting, but they don’t reflect digital technologies.

10 Third Party Rights Challenge Third party rights include talent, music, stock footage and stills. Rights are still licensed from archives and unions like items on an “a la carte” menu. Many archives and unions have not yet defined or priced rights for new media, including on-demand and wireless or cell phone uses. Purchase or buyout of multi-platform rights may not be possible or affordable relative to the service or revenue potential of those distribution methods.

11 The Current Landscape Insufficient funding to clear all rights needed Impact on Editorial: Reliance on more originally created content and/or public domain material to reduce clearance costs If rights are not cleared, elements must be substituted or the entire program is unavailable for exploitation in a given market. Is it “progress” when editorial choices are dictated solely by cost and availability of multiple rights? Expanded reliance on “fair use” – risks

12 Elegant Universe Case Study Over 200 agreements were necessary to acquire rights to each program element contained in this 3 part series. All these agreements have the same provisions for:  Use/Media (e.g., broadcast, audio-visual, home video,etc.)  Term (period)  Territory  Miscellaneous (language, promotion, etc.)

13 Open Content – The Next Step? Open Content is any creative work published in a format that explicitly allows copying and reuse of the material. Use of material may be restricted by a Creative Commons license. Some philanthropic foundations are interested in funding projects which are publicly accessible on a creative commons license.

14 Open Content - Emerging Business Models Eric Von Hippel, author of Democratizing Innovation, released his book for sale and free download  Hard cover sales - over 4800 copies sold (3000 had been the norm)  Over 4000 free downloads from the web site  Reached largest number of readers and offered format of choice. Successful co-existence of traditional print publication with free “download to own.”

15 Open Content - Emerging Business Models MIT Open Courseware  Courses offered under a Creative Commons license  Use Adobe PDF to limit ability to re-mix, edit, burn copies of course materials to address “control” concerns of Professors  Financial Support: currently, foundations; experimenting with corporate sponsorship, major gifts, piloting eBookseller referrals, print on-demand fees.

16 Open Content - Emerging Business Models Prelinger Collection -- vast film collection available for free, non-profit, educational use through the Internet Archive and licensed for commercial use by Getty Images  Getty’s sales increased as a result of increased user traffic on Internet Archive

17 A New Business Model for Public Broadcasting? If we continue to produce and distribute great content openly and freely, will it increase our value and funding will follow? (the “Field of Dreams” model) Or do we charge for content on certain platforms, like the commercial networks and new media companies (Google, iTunes, Yahoo) when they release programs on demand for a fee? (the “Desperate Housewives” model) What can we learn from the BBC’s open content initiative, the Creative Archive? Is there a sustainable model for public broadcasting from among these alternatives?