1. SALMON (Sharing as an Alternative for Locking up the Music On the Net) Yki.Kortesniemi@hiit.fi – Ville.Oksanen@hiit.fi 2.10.2003 A proposal for NETS/Valtavirran haastajat

2. The Distribution Dilemma Content producers want to distribute their products for a compensation –Consumer copying is seen as a big problem Current “dogma” –DRM and copyright are necessary - otherwise artists and record companies will not be compensated for their work The Dilemma –DRM is not the solution as something that can be played can always be copied

3. The New Approach Proposed model –Users are allowed to share and use (compulsory licensing) music non-commercially in exchange for a simple “participation” fee –The compensation for artists is based on usage, not copies (“taking copy out of copyright”) Justification –Transaction costs will be considerably lower and thus making all parties (but IPR-lawyers) better off. –Incentives to cheat reversed compared to the current model

4. Background Derived from MobileIPR & STAMI - projects –DRM unlikely to realize (global user resistance, long-term competitive alternatives) –Using statistical methods for tracking the usage of digital works

5. Open Issues 1/2 Architecture: –How is the money going to be raised (ISPs collect, a governmental tax etc?) –How is the money going to be distributed –Fairness: what about users who do not download music or only listen music, which is already in public domain

6. Open Issues 2/2 Technical feasibility –How to create robust enough tracking systems, which do not violate the user privacy? –How to prevent creation of “fake” artist (a’la Mafia Marching Band) Legal feasibility –Is it possible to create global compulsory licensing regime?

7. Project proposal Funding from Valtavirran Haastajat –One year, budget: 80K€ –2 researchers, 40% Deliverables –Solution concept –Report on legal aspects What kind of changes would be needed to international treaties and national copyright laws