1. 1 Functional reference model for Digital Rights Management Systems Vural Ünlü / Prof. Dr. Thomas Hess Munich School of Management Berlin, 5. September2004

2. 2 The fundamental Problem: Copying and Exchange of content are facilitated through ICT Easy data exchange through P2P networks Easy copying through separation of content and medium

3. 3... the first visible consequences other affected media segments might follow… Source: Deutsche Landesgruppe der IFPI, Jahreswirtschaftsbericht 2001 Y2Y Change in revenues of Germany music market (in %) 0%20%40%60%80%100% Advertising journal Free-TV Newspaper Scient. publication Pay-TV Book Sales revenues Advertising revenues Share of total sales Revenue split of media segments

4. 4 Generic Copyright Protection Strategies Technical Digital Rights Management Systems Encryption Watermarking Rights Expression Languages Legal Statutory and contractual Mass Market licenses Lobbyism Change of Copyright regime Legal education of end consumers Business Business models Revenue Model Value Chain Cost structure

5. 5 Digital Rights Management Systems as the most effective solution? DRM pursues the objective of technically enforcing the economic and moral interests of content providers. By using a bundle of technical components, a secure and efficient use of digital content via all media is ensured and usage-dependent business models are made possible. –In a narrower sense, DRM-systems pursue a complete control over distribution and use of content. –In a broader sense, DRM-systems allow an individual and differentiated royalty management of the use of content and efficient backend legal administration.

6. 6 Logical architecture of Digital Rights Management Systems Cleared Content Billing Billing Data Access Control License Data Prosecution of infringe- ments Usage Control Content- library Source: Ünlü/Hess 2004

7. 7 Access control DNS-Rerouting IP-Blocking Application Blocking Proxy Filtering Anonymous ID/Password Token-based Biometric Example: Pay-TV y=f(x)X=f`(y) End consumerContent Provider Filtering techniques Authentification

8. 8 Usage control Rights Expression Languages Right to render content Right to transport content Right to produce derivative works Example: xrML eXtensible rights Markup Language (XrML) is a language for the expression of rights for a media asset Syntax is defined in XML grant Issuer license Right Principal Resource Condition Source: Based on ContentGuard 2002, Version 2.0

9. 9 Prosecution of infringements Example: ImageBridge™ Enterprise Visible Wasserzeichen Invisible – robuste watermarks Invisible – fragile watermarks Digital Finderprints Watermarks Source: Digimarc, http://www.digimarc.com/products/imagebridge/default.asp

10. 10 Billing Pay-per-use (Pay-per-Listen) (Pay-per-view) Usage Metering Superdistribution Billing Publisher Book buyer Price of book Price of book minus X% X% of Book price Super - distribution Rights Rendering: display on output device, print Extent: indefinite Rights Rendering: display on output device Extent: indefinite Example: Superdistribution of book content

11. 11 Digital content Protected media Streaming or web server Clearinghouse license server 1 2 4 3 Package Media Distribute content Set up license server Request / Receive media End customer (front-end DRMS) Content provider (back-end DRMS) 6 Render content Portable device 5 Authenticate/ Download license Microsoft Media Player with Media Rights Manager Example: Microsoft Windows Media Player

12. 12 DRM Functionality as a result of intertwining technologies Encryption Digital watermarks Authentication techniques (e.g., digital signature) Robust watermarks for authentication check Access control Rights expression languages Representation of authorized users / devices Representation of license rights Usage release through content decryption (e.g. based on symmetrical algorithms) Robust watermarks for enforcement of copy protection Usage control Elimination of manipulated DRMS- clients (device revocation after challenge-response operation) Fragile watermarks for integrity check Prosecution of infringements Representation of authorized users / devices Representation of usage information Secure payment procedures (e.g. SET-protocol) Robust watermarks for authentication check Metered-usage billing Function Technology

13. 13 Metered- usage billing Access control Usage control Functions Digital Rights Management Systems Prose- cution of copyright infringe- ments Encryption Rights expression languages Digital watermarking Core technologies Conclusion