08 making information pay 2011 -- reid, marlin, shatzkin (rights managment)
1. More Efficient Rights ManagementThe key to future profits Mike ShatzkinFounder & CEO, Idea Logical Company Heather ReidDirector of Data Systems & Services, Copyright Clearance Center David MarlinPresident and Co-Founder, MetaComet Systems
2. The change that is accelerating 2 Whole books get harder to sell in any format: competition and atrophying channels Fragment permission and licensing opportunities grow, due to apps, ebooks, and web sites More transactions, fewer dollars per Rights research eating up too much of the revenue
3. Robust rights databases are needed! 3 Or, so it seemed, but we wanted to confirm CCC funded research for a team to speak to publishers and service providers We learned this is a pain point that is universally appreciated We learned that this is a vast problem that stymies just about every company We think we figured out where to begin to solve it
4. The Current State of Rights Management Systems Initial Findings from BISG & CCC’s Joint Survey of Publishers and Vendors Heather Reid, Director Data Systems & Services Copyright Clearance Center
5. Survey Process 5 Goal was to get a read on the rights management landscape among U.S. publishers We interviewed both publishers and vendors of rights management systems Nine publishers Six vendors
6. Summary Findings 6 Only one publisher interviewed has addressed rights management comprehensively Some have at least some data stored digitally in a persistent data structure Many publishers only store their rights data as PDFs of legal contracts “50% of all publishers – and even the big ones – don’t have a digitized contract file. They’ve got contracts filed in paper files somewhere.“ -Vendor
7. Summary Findings, part 2 7 Current systems are ineffective and don’t adequately meet needs Mix of off-the-shelf and home grown systems Not well integrated Not managed/funded as strategic initiative Rights = a choke point Inbound rights not accessible in the way they should Outbound rights take too long to process In the old world, … you create a book and you push it in physical form and the contracts departments was … a back office operation. We’re dealing in a content world now…and as a result…rights [management]…is critical.” - Publisher
8. Every Transaction is a Rights Transaction 8 Digital Publishing is a true paradigm shift Creating both opportunities and threats Global marketplace for digital products Entails strategic management and exploitation of rights Micro-transactions will grow Knowing rights at a granular level is key Rigorous rights management NOT optional Table stakes for truly exploiting new markets “This is about leveraging your intellectual property in every sales channel and every market around the globe.” - Publisher
14. “You’re losing revenue for sure if you don’t know what your rights are.”“It’s not can we afford to, but can we afford not to?`”
15. How To Move Forward 10 Industry education Best practices Discussion of issues and complexities Develop standardization of terms and definitions For “rights in” and “rights out” Common taxonomy Alignment within and among publishers Reframe rights management as strategic to business Rights vended are rights sought Publishers seeking bundles of rights are also vending those same rights Systems and process integration Reduce manual data entry Reinforce proper workflow and communication Cross-company buy-in “It’s about [knowing] what you need to own in order to transform your business and be a player in the new marketplace. Otherwise, you’re kind of old news. “ - Publisher
16. Implementation Strategies 11 Start by databasing current contracts; then address the backlist Systems must be flexible and extensible – adapting as market demands evolve Systems integration is key – rights management system must talk to other key systems
17. Content in the Wild “not the kind of stuff that you can actually let out into the world”
18. The Wild “I think it’s the scariest thing that I’ve heard in the past few years…because the value that we still have as publishers … as content curators and content creators … if we don’t do a better job of this, we’re going to lose that advantage … very quickly.” 13
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20. Legal & Compliance “the Company’s independent registered accounting firm advised the Company that the control deficiency described below constitutes a material weakness in its internal controls.” – an actual Annual Report Single most important value that the rights system brought to one organization: “Risk Management” “The bigger issue may be that of potential liability to the business” “…exposure and liability associated with using content we haven’t acquired.”
21. Brand “Publisher Settles Class Action Lawsuit” Importance of Author Relationships: “Any author who ever hears me responding to this is going to go, it better be a five. So it’s a five.”
22. “a database system that creates extra steps instead of removes them is never going to be embraced” “we probably will still be dealing with decisions made now in 15 years” Capital Investment
23. “Unless you can organize your content in a way that makes the purchase very easy, it’s not low-hanging fruit. And that’s kind of what I’m stumbling over right now is getting the content organized.” “ ‘it’s just easier for me to go out and source my own content than to work with you guys,’ scariest thing that I’ve heard in the past few years” Profit “we’re all sitting on the same problem. . . we’ve never really placed strenuous demands on our content in this way.” “By the time they got back to the requester, they had gotten tired of waiting and had gone in a different direction.”
24. Risk Mitigation “How good your data management is allows you the greatest leverage and facility to actually do with your intellectual property what you thought you were acquiring it for!” “having really a robust taxonomy in place that allows us to group content, to group it, slice it and dice, it” 19
25. A next phase project: to make real progress 20 The first goal: all publishers properly databasingnew contracts from inception The next objective: figuring out what it takes to get any publisher to that point Required: a taxonomy that works, contracts and permissions mapped to the taxonomy, a workflow that captures new contract terms in a database reflecting the taxonomy
26. Use and test the taxonomy 21 Select a core group of (about) 15 publishers: all sizes, all types Pull all current “standard” contracts; map them to BISG rights committee taxonomy Capture 3 months of permission and relicensing requests: map them to taxonomy Analyze taxonomy for gaps; refine taxonomy and, if necessary, the contracts
27. Uncover the workflow challenges 22 For each publisher, track the workflow that leads to the contract (editor’s instructions?) Look for opportunities to capture contract info in database simultaneously with issuance of contract Redesign workflow to create both at once Create checkpoints to make sure contract and database are in synch
28. Spread the best practices 23 Deliver a template for the database with checklist of contract “trouble spots” Document workflow alternatives that deliver both contract and database Develop a program to cost-efficiently help all publishers get to best practice with new contracts Finally: we can then think about the backlist!