1. SmartRight™ 1 THOMSON multimedia 2001 ©11 july 2001 Copy Protection System for Digital Home Networks CPTWG – July 11, 2001

2. SmartRight™ 211 july 2001THOMSON multimedia 2001 © Highlights  End to end protection  Three modes of copy protection Free copy Private copy View only  Personal Private Network  True renewability  Business model neutral

3. SmartRight™ 311 july 2001THOMSON multimedia 2001 © SmartRight devices Access Device Presentation Device Recorder Converter module Terminal module Digital Bus

4. SmartRight™ 411 july 2001THOMSON multimedia 2001 © Viewing broadcast content Scrambled video + Local ECM Scrambled video + Local ECM Scrambled video + CA protected CW Scrambled video + CA protected CW CA protected CW Local ECM Local ECM Local ECM Control Word to get clear video End to end protection

5. SmartRight™ 511 july 2001THOMSON multimedia 2001 © Recording content Scrambled video + Local ECM Scrambled video + Local ECM Scrambled video + CA protected CW Scrambled video + CA protected CW CA protected CW Local ECM

6. SmartRight™ 611 july 2001THOMSON multimedia 2001 © Viewing recorded content Scrambled video + Local ECM Scrambled video + Local ECM Local ECM CW Storage Unit neutral

7. SmartRight™ 711 july 2001THOMSON multimedia 2001 © Creating private copies Same secret key to decrypt LECM

8. SmartRight™ 811 july 2001THOMSON multimedia 2001 © Personal Private Network  Set of devices whose terminal card share the same secret key  Automatic management and enrollment Virgin card waits for the secret key Progenitor card transmits the secret key Sterile has the secret key but cannot anymore hand it  Each Personal Private Network has its unique secret key  Personal Private Networks cannot interoperate

9. SmartRight™ 911 july 2001THOMSON multimedia 2001 © If less than max size No limitation Impossible No limitation Under limited conditions

10. SmartRight™ 1011 july 2001THOMSON multimedia 2001 © Viewing view-only content Temporarysecret Request Collaboration between converter & terminal

11. SmartRight™ 1111 july 2001THOMSON multimedia 2001 © True Renewability  Changing the heart of security: smart cards  Renewed under control of SmartRight Association  Content triggers card renewing Converter / terminal independent renewal  How to get new cards Converter card distributed by CA/DRM providers Terminal card distributed by SmartRight checkpoints – Certified dealers, retailers, shops, …  Backward compatibility Content recorded with previous cards remain accessible to newer cards.

12. SmartRight™ 1211 july 2001THOMSON multimedia 2001 © Business neutrality  CA/DRM keeps control as long as it wants Stores content in CA protected format – Possible due to storage unit neutrality  CA/DRM has access to a secure viewing environment  View only if no copy allowed  Private copy if copy allowed  CA/DRM manages time  SmartRight manages space

13. SmartRight™ 1311 july 2001THOMSON multimedia 2001 © Scenario 1: View for 3 hours Buy View only   

14. SmartRight™ 1411 july 2001THOMSON multimedia 2001 © Scenario: Pay 2 times then keep it Buy View only Private copy 2nd Buy

15. SmartRight™ 15 THOMSON multimedia 2001 ©11 july 2001 SmartRight Association and Licensing Administration This document is for background informational purposes only. Some points may, for example, be simplified. No guarantees, implied or otherwise, are intended. CPTWG meeting July 11 th, 2001 CPTWG meeting July 11 th, 2001

16. SmartRight™ 1611 july 2001THOMSON multimedia 2001 © What value for what players? CE manufacturers’ market grows: SmartRight compliant devices New market for SmartRight IC and smart cards Consumers benefit from high-value content, and new ways of enjoying it Content distributors get new revenues from digital content distribution Content owners get new revenues from digital content distribution and new usages SmartRight Fights against piracy Enables new business models

17. SmartRight™ 1711 july 2001THOMSON multimedia 2001 © SmartRight Association and Licensing Administration SmartRight Association & LA Founding/core Technology members Advisory group (Content industry) Specification, Patents, and Logo licensing Smart cards Personalization Content providers Content distributors CE / IT manufacturers Chip/module manufacturers CA / DRM providers Licensees Smart cards manufacturers

18. SmartRight™ 1811 july 2001THOMSON multimedia 2001 © SmartRight Association & LA: 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)  Insures devices’ compliance with SmartRight specifications  Collects SmartRight fees and pays for SmartRight smart cards

19. SmartRight™ 1911 july 2001THOMSON multimedia 2001 © SmartRight Association & LA: Mission statement (2/2)  Defines renewability / revocation rules  Checks that the system is not hacked (alarm ring)  Controls a network of Checkpoints (retailers and other distribution points) for smart cards replacement  Licenses SmartRight essential Patents for SmartRight implementation

20. SmartRight™ 2011 july 2001THOMSON multimedia 2001 © SmartRight smart cards distribution model  Initial smart cards: For STBs, – SmartRight functionality is merged with CA functions (included in the CA card), – Pay-TV service operators control the distribution of the cards as usual For TVs, DVD players…, smart cards are shipped together with SmartRight devices: – CE manufacturers buy smart cards from smart cards manufacturer – Cards are enclosed within SmartRight device shipping cartons – One card per device

21. SmartRight™ 2111 july 2001THOMSON multimedia 2001 © SmartRight renewability rules  Renewability Geographical zones Over time  Replacement implemented, under the control of SmartRight Association, by Pay-TV service operators for CA/SmartRight cards SmartRight CheckPoints for other cards

22. SmartRight™ 2211 july 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

23. SmartRight™ 23 THOMSON multimedia 2001 ©11 july 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