1. SmartRight™ 1 THOMSON multimedia 2001 ©28 November 2001 Copy Protection System for Digital Home Networks Deployment process CPTWG – November 28, 2001

2. SmartRight™ 228 November 2001THOMSON multimedia 2001 © Agenda  Update on SmartRight progress and support from the industry DVB-CP call for proposals State of development  SmartRight business deployment

3. SmartRight™ 328 November 2001THOMSON multimedia 2001 © SmartRight’ s answer to the DVB-CP CfP  Thomson proposed SmartRight as an answer to the DVB-CP CfP, together with many partners:  SmartRight clearly meets all DVB-CP specifications

4. SmartRight™ 428 November 2001THOMSON multimedia 2001 © State of development  Specifications 0.84 Global framework Protection mechanisms, protocols, and key management Algorithms IEEE1394 commands, ISO7816 commands  Prototype Network simulator software with real smart cards, shown at last CPTWG meeting PC based platforms: December 2001 Embedded platforms (CE devices): 2Q2002

5. SmartRight™ 528 November 2001THOMSON multimedia 2001 © Potential deployment  Cost effective solution  Off-the-shelf chip set  SmartRight -compliant CE devices targeted for 2003

6. SmartRight™ 628 November 2001THOMSON multimedia 2001 © SmartRight business deployment  SmartRight Association  SmartRight Licensing Administration  SmartRight Key Management Center What follows is a draft proposal to be discussed and finalized with SmartRight early partners

7. SmartRight™ 728 November 2001THOMSON multimedia 2001 © SmartRight Association SmartRight Association & LA Founding/core Technology members Advisory groups (Content industry, Broadcasters) SmartRight Key Management Center SmartRight Key Management Center SmartRight “CheckPoints” Specification, and Logo licensing smartcards Personalization Content providers Content distributors CE / IT manufacturers Chip/module manufacturers CA / DRM providers Licensees Certified keys smartcards manufacturers Patents licensing SmartRight Licensing Administration Essential patents holders

8. SmartRight™ 828 November 2001THOMSON multimedia 2001 © SmartRight Association: Mission Statement (1/2)  Develops / maintains SmartRight specifications  Controls the creation and distribution of certified keys to entities in charge of personalization of security modules (smart cards): This task may be subcontracted, through an open tender  Insures devices’ compliance with SmartRight specifications and security requirements This task may be subcontracted, through an open tender  Collects SmartRight fees and pays for SmartRight smart cards

9. SmartRight™ 928 November 2001THOMSON multimedia 2001 © SmartRight Association: Mission Statement (2/2)  Defines renewability / revocation rules  Checks that the system is not hacked (alarm ring)  Drives corrective actions in case of hacking (smart cards replacement / revocation)  Controls a network of CheckPoints (retailers and other distribution points) for smart cards replacement: This task may be subcontracted, through an open tender  Licenses SmartRight specification and logo

10. SmartRight™ 1028 November 2001THOMSON multimedia 2001 © SmartRight Association Revocation Policy SmartRight Association Revocation committee Reports from Alarm Ring Revocation criteria may include: Threshold of hacked Personal Private Networks Threshold of clones of one smart card Threshold of illegal copies of a piece of content by the same hack Other types of hacks that are deemed worth a revocation Launches the revocation process if the revocation criteria are met

11. SmartRight™ 1128 November 2001THOMSON multimedia 2001 © SmartRight Association Renewal Policy SmartRight Association Renewal committee Renewal criteria may include: Threshold of losses due to content piracy because of a breach in the SmartRight system A trade-off between the amount of losses and the cost of implementing a corrective action  Development of a new version of the system  Deployment of a new system, incl. distribution of new smart cards Availability of a technical solution enabling a new and more secure version of the system Launches the renewal process if the renewal criteria are met

12. SmartRight™ 1228 November 2001THOMSON multimedia 2001 © SmartRight smart card distribution INITIAL smart cards  For other devices, the SmartRight card is packaged with device by manufacturers  SmartRight functionality included within CA/DRM card  PayTV / Internet service provider controls the distribution of the cards as usual

13. SmartRight™ 1328 November 2001THOMSON multimedia 2001 © SmartRight Association CA / DRM SmartRight Checkpoints SmartRight smart card distribution RENEWING smart cards Launches renewal process

14. SmartRight™ 1428 November 2001THOMSON multimedia 2001 © Association’s sub-contractor: SmartRight Key Management Center  SmartRight Association normally responsible for the tasks described hereafter  But, for organizational and/or economic reasons, it may decide to subcontract them to a SmartRight Key Management Center  One or several Centers per region (e.g. the USA, Europe, Asia), The SmartRight system is likely to have technical differences according to the standards in force in each region.

15. SmartRight™ 1528 November 2001THOMSON multimedia 2001 © Key Management Center’s functions SmartRight Association SmartRight Key Management Center SmartRight Key Management Center Control smartcards Personalization centers SmartRight “CheckPoints” Smart cards manufacturers CE / IT manufacturers CA / DRM providers 1 Manage secured keys 2 Provide authorizations and certificates for personalization 3 Provide compliance test services 4 Manage smart cards’ life cycle 5 Manage an a posteriori database to control renewal process

16. SmartRight™ 1628 November 2001THOMSON multimedia 2001 © Control of the renewals  Unique ID per smart card – not registered No a priori database  SmartRight Checkpoints equipped with “terminals” SmartRight terminal “old”“new”  “New” card gets consumer’s network key from “old” card Ability to read “old” content  Off-line operation  Checkpoint control: number of “new” cards distributed equal to number of “old” cards collected

17. SmartRight™ 1728 November 2001THOMSON multimedia 2001 © Control of the replacements and other particular cases  Under the control of the SmartRight Association SmartRight terminal  On-line operation, connected to SmartRight database Each operation is logged in the database !  Alarm if operation different from pre-defined usage patterns, e.g. Same consumer “losing” card too often Same network card in different places, from different consumers …  Active security Similar to mobile phones security models

18. SmartRight™ 1828 November 2001THOMSON multimedia 2001 © Smartcards Life Cycle Events CREATION Smart card manufacturer CE device manufacturer CA/DRM provider

19. SmartRight™ 1928 November 2001THOMSON multimedia 2001 © Smartcards Life Cycle Events REPLACEMENT SmartRight Checkpoint … replaced by a new one, with the same characteristics Non-working, lost, destroyed card…

20. SmartRight™ 2028 November 2001THOMSON multimedia 2001 © Smartcards Life Cycle Events ENHANCEMENT SmartRight Checkpoint A card is exchanged for a card with extended features compared to the regular card, but with the same SmartRight version e.g. when some changes in the consumers’ life, such as marriage or divorce, require modifications in the topology of the network

21. SmartRight™ 2128 November 2001THOMSON multimedia 2001 © Smartcards Life Cycle Events REVOCATION A card or a targeted set of cards must be disabled (invalidated) SmartRight Association’s Revocation Committee

22. SmartRight™ 2228 November 2001THOMSON multimedia 2001 © Smartcards Life Cycle Events RENEWAL All the cards of a region are exchanged for new ones, with a new version of SmartRight SmartRight Association’s Renewal Committee SR V1 old cards SR V2 new cards SR V2 New version of SmartRight SmartRight Checkpoint or CA/DRM

23. SmartRight™ 2328 November 2001THOMSON multimedia 2001 © Contact names  Technical information: Eric DIEHL (diehle@thmulti.com)diehle@thmulti.com  Business information: Olivier LAFAYE (lafayeo@thmulti.com)lafayeo@thmulti.com Solen JABOULET (jaboulets@thmulti.com)jaboulets@thmulti.com Al BAKER (bakera@tce.com)bakera@tce.com

24. SmartRight™ 24 THOMSON multimedia 2001 ©28 November 2001 Thank you for your attention This document is for background informational purposes only. Some points may, for example, be simplified. No guarantees, implied or otherwise, are intended