Bill Rosenblatt's opening remarks from the Copyright and Technology 2011 conference, New York, November 30.

1. Copyright and Technology 2011
November 30, 2011
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2. Opening Remarks
Bill Rosenblatt
GiantSteps Media Technology Strategies
www.giantstepsmts.com
www giantstepsmts com
billr@giantstepsmts.com
Twitter: @copyrightandtec
+1 212 956 1045
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3. www.giantstepsmts.com
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4. www.copyrightandtechnology.com
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5. www.gothammediaventures.com
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6. What Are We Discussing Today?
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7. Interface between Copyright and
Technology
T h l
Digital technology used to make and distribute copies
at virtually no cost
Copyright i d t responses, all i t l t d
C i ht industry ll interrelated:
– Legal
– Technological
– Economic
– Education
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8. Technologies to Affect Copyright
Content access control
– DRM
– Conditional Access
Content identification
– Filtering
– License/royalty management
Rights registries
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9. Legal Concepts that Affect These
Technologies
T h l i
Fair Use
First Sale
Secondary infringement liability
Network service provider liability
p y
Anticircumvention legislation
Blanket licensing of content
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10. Technologies
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11. Digital Rights Management
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12. DRM is a “troubled”* technology…
Why?
*Jaron Lanier, You Are Not a Gadget, 2010
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13. Factors Inhibiting DRM Success*
 Market:  Architecture:
– Economic incentives – Technological innovation
misaligned hampered
– Commercial content must
compete with free/illegal
 Norms:  Laws:
– Users don’t see value in – Laws not amenable to
choices of offers technological implementation
– Norms distorted by
architecture (technology)
*Based on L. Lessig, Code and Other Laws of Cyberspace, 1999, pp. 88-90
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14. Market:
Economic Incentives Misaligned
E i I ti Mi li d
Content owners demand DRM but rarely pay for it
Device makers and network operators use it to suit
their
th i own purposes
Consumers have only indirect market influence
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15. Norms:
Consumers Don’t Yet See Value in N Models
C D ’t Y t S V l i New M d l
Radio
ulations
Record Store
Legacy
VCR
Emu
Bookstore
Free/Limited VOD
Dig Native
Paid Subscription VOD
New,
gital
Free/Limited OD Music
Paid Sub OD Music
0 10 20 30 40 50 60 70
Million U.S. Users (estimated)
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16. Norms:
Users Influenced towards Infringing B h i
U I fl dt d I f i i Behavior
Definition of DRM commandeered by the press
– Narrower than original definitions
– Yet broadened to apply to any technology that restricts user
behavior in any way1
Notion that DRM  Big Media  Evil/Obsolete
Romanticism & rationalization of hacker/pirate ethic
“Lords f the Cloud” t the “free d
“L d of th Cl d”2 get th “f and open” PR3 ”
1C. Doctorow, M. Masnick, etc.
2J
Jaron Lanier, Y A Not a Gadget
L i You Are N t G d t
3Robert Levine, Free Ride
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17. Architecture:
Technological I
T h l i l Innovation Hampered
ti H d
Lack of revenue for DRM vendors
Venture capital scared off
– B d press
Bad
– Non-sexy topic
Researchers scared off
R h d ff
– RIAA actions against Prof. Ed Felten in 1999
– DRM research “politically incorrect” in U S
politically incorrect U.S.
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18. The Rights Technologies R&D Imbalance
450 70
400
60
350
50
300
250 40
200 30
2009 Gross Expen‐
ditures on R&D
150 ($Billion)
20 RT R&D Output
RT R&D Output
100 (Research Papers)
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50 RT R&D Index
0 0
Device Producers Content Producers
Sources: O C IMF
S OECD,
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19. Laws Not Amenable to
Technological Implementation
T h l i lI l t ti
 Fair Use laws not amenable to automation
 Privacy and due process are important but become obstacles
 Anticircumvention laws reduce incentive to develop effective
technologies
– Liability solely on the hacker
y y
– Effectiveness of TPM/DRM irrelevant to applicability of law
(per Universal v Reimerdes, 2000)
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20. Yet DRM Is Alive Today…
Downloads Real Time Delivery
E-books Yes “Screenshot DRM”
(page images)
Music Mobile device Usually
“offline listening (stream encryption)
mode”
d ”
Video Yes In most release
windows
(stream encryption)
(t ti )
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21. Will DRM Die?
Not Wh
N t When It Enables N Models
E bl New M d l
 Digital music downloads: iTunes (originally)
 Premium pay-per-view TV
 E l release window fil
Early l i d films
 Music subscription services:*
Rhapsody, MOG Rdi S tif P i
Rh d MOG, Rdio, Spotify Premium
 Subsidized-content ecosystems:
boinc (music) Amazon Prime (e book a month)
(music), (e-book-a-month)
 Library e-book lending: OverDrive, BlueFire
*Yes they do – they just don’t call it “DRM”
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22. Content Identification
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23. Techniques for Identifying Content
Watermarking
Fingerprinting
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24. Watermarking
Inserting/embedding data into “noise” portions of
noise
image, audio, or video signal
Data capacity: typically a few dozen bytes
Technology appeared in mid-to-late 1990s
– First for digital images
– Audio and video later
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25. Fingerprinting
Examining content to determine its identity
– Compute a set of numbers (“fingerprints”)
– Look up in database, see if there’s a match
Based on mathematical concept of hashing
– But allows for different files that look/sound the same
– Can compensate for certain transformations:
excerpting, cropping, audio distortion, etc.
History:
y
– 2002: Introduced for music during Napster litigation
– 2006: Video fingerprinting introduced
– 2007 “T t fi
2007: “Text fingerprinting” (Att ib t ) adopted b AP
i ti ” (Attributor) d t d by
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26. Content Identification
Business B fit
B i Benefits
Detecting and deterring unauthorized use
Tracking content usage
Discovery & recommendations
Increasing Internet ad revenue
g
Managing assets and integrating systems
Monetizing transformational content uses
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27. Legal Developments
…and their Technical Solutions
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28. Legal Developments
Network operator liability
“Free riding”
Digital First Sale
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29. Network Operator Liability
Secondary liability
– Contributory: aiding and abetting infringement
– Vicarious: “looking the other way” and benefiting from it
looking way
– Inducement: inducing others to infringe as business model
ISP Liability
– Notice and takedown (DMCA 512)
– Graduated/Progressive Response a/k/a “three strikes”
g p
(France, South Korea, Taiwan, New Zealand, UK)
– Center for Copyright Information, USA
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30. Technical Solutions
Fingerprinting
Watermarking
Traffic analysis
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31. “Free Riding”
Monetizing links to copyrighted content
Posting links to illegal content (e.g. in cyberlockers)
Monetizing content appearing in search results
“Cloud sync” services(?)
y ()
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32. Technical Solutions
Fingerprinting & search
Tagging content with “beacon” metatags – AP hNews
Tagging content with rules for indexing and search
results – ACAP
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33. Digital First Sale
First Sale: Section 109 of U.S. copyright law
US
Known as “Exhaustion” in other countries
If you obtain a copyrighted work legally,
you can do what you want with it
Applicability to digital downloads is unclear
Copyright Office punted on it in 2001 report
Downloads covered under licenses, not copyright
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34. Technical Solutions
 Forward
“Forward and delete” DRM like functionality
delete DRM-like
Described in 2001 Copyright Office paper
Implemented by startup ReDigi
Described in IEEE P1817 standard for
“Consumer Ownable Digital Personal Property”
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35. Thanks to our Sponsors
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36. Thanks to our Media Sponsors
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37. And finally…
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38. Recommended Reading
Robert Levine, Free Ride
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