Introducing Digital Rights Management Willms Buhse October 2002, Vilnius

 The Context  Descriptive Overview:  Technical Protection Measures (TPM) vs. Digital Rights Management (DRM)  DRM Infrastructure  Selected Business Models  DRM-based Product Offering for the Media Industries Overview

 Digital Products  entertainment: music files, movies etc.  publishing: documents, patient records, school books  Piracy  of physical representations, e.g. CDs (over 50%)  on the Internet via filesharing networks, e.g. Napster, Gnutella  Security  integrity of data and privacy protection The Context

Definitions: Technical Protection Measures (TPMs) A technology that offers entertainment and publishing companies to secure and protect content such as text, audio and video from unauthorized use. They work by impeding copying e.g. by marking digital files for identification (Watermarking or Fingerprinting) or by encrypting. Digital Rights Management (DRM) The management of rights to digital products for content providers and content users including time- and usage-based business models such as renting, subscription and promotion. Definitions and Context between TPM and DRM

Digital Rights Management Cycle

Industry Trends CONTENT SUPPLIERS -Demanding DRM- infrastructure in place -Licenses to digital content become available CONSUMERS -Demanding access to rich media content -Increasing access to bandwith. CLOSED NETWORKS - DRM only as billing tool OPEN INTERNET - Uncontrolled - Awash with illegal content ENVIRONMENT - Growing political support for IP protection. - Legal frameworks emerging TECHNOLOGY - Complex, developing - Networked authentication - Trusted Computing - Security updates online WALLED GARDENS - Ideal environment for DRM - Opening up to the digital world - Increasing need for DRM - Becoming more controlled and secure - Authenticable via Liberty Alliance, Passport etc. Market Penetration and Acceptance of DRMs

DRM Infrastructure Concept ADo 2 RA Mobile phones CDs DVDs Music Publishing- products Software & Games Video Set-top Boxes PCsPortalsPDAs Preparation Packaging Distribution Licensing Rightslocker

Business Models for the Private and Public Sector SubscriptionDistributionPromotion B2B  Protected Radio Promotion  Collecting Business Contacts with superdistributed Whitepapers  Market Reports  Manuals  Documentation  Digital course material  eLearning/ eUniversities  Research Center B2C  Promotional MMS  Tokenbased Branding (on-offline)  Data Mining: User Infos for free content  Time out content with link to Purchase  Content via websites and retail  Pre-installed content on CDs and Harddrives  Artist FanZones  Branded Clubs  Digital Libraries

Artist Subscription: BeFANattic  Using BeFANattic, Arista artists BoyzIIMen make exclusive content and services available only to their fans at  Secure audio and video files, studio clips and access to unreleased music tracks.  Branded instant messaging, message boards, chats with the artist, exclusive merchandise, advanced ticketing.  BoyzIIMen‘s objectives:  Build a community of fans to test / buy music.  Promote new album “Full Circle”.  Create a new revenue stream.

Mobile Content Combination of  Content  Application (Java)  Service Business Models  Subscription  Super-Distribution (MMS)  Streaming and Download  Text, Music, Games, etc. Mobile Solutions with DRM

Copy-protected and DRM-enabled CD Two sessions: one plays on CD players, the other on PCs and any DRM enabled devices. Cross-promotion of artists/authors, bonus tracks, video clips, biographies, games, or interviews. Protected multimedia content for commercial or promotional purposes. Content can be consumed based on business rules.

Thank you! Willms Buhse Hamburg / New York Tel: Tel: