Realities of Managing Digital Rights

Gail DykstraDykstra Research

eLibraries 2003 New York, May 6, 2003

Gail Dykstra Dykstra Research

Today

• Reality is being squeezed• And the response is ….• Libraries need 4 facets for strategy

Squeezed On All Sides

Caught in the Middle

• Consumer’s rights

• User behavior

• User’s expectations for content

• Library has exceptions

• Creator’s rights

• Pay to play

• Content business models

• Library sets practices & example

Caught in the Middle Again…

• Access issues

• Institutional response

• User behavior

• No Administrative Policies

• Laws, licenses & liability

• Implementation

• Indirect control (if at all)

• No realistic administrative policies

Out Of The Middle

Libraries have been here before• Content • Collection• Creation• Setting metadata standards

Columbia University

• You are responsible for what you do on the network.

• You must respect copyright.• The University must take appropriate action.• File-sharing programs automatically distribute

files.• File sharing help… for removing or disabling

…..http://www.columbia.edu/cu/policy/copyright-info.html

Libraries Actively …..

• Educate users• Only accept non-infringing behavior• Identify content preferences• Define best practices • Engage technology standards

Strategy

Public & Institutional

Policy

Standards Business & Behavior

Technology

Technology

• Digital Rights Management (DRM) Definition

Definition

Functionalities

Enforcement & Roles

• Security policies & procedures• Enforce password access

• Identity-based roles• Personas

Rights Protection Software

Digital Rights Management (DRM) 4 As

• Authentication• Authority• Access• Accountability

DRM permits smooth, secure, trusted and persistent movement of digital works from creators and publishers to retailers and consumers

DRM Technologies & Services• Software Encryption, wrapping, watermarking

• Hardware eBooks, consumer games, mobile devices PCs & servers

• ServicesCopyright & licensing collectives.Point of permission services

• IP Asset Management SystemseLicensing & digital asset management

Encryption Technology

EncryptionCreate Digital Content

SEND SET- Content - Access- Metadata - Use

Firewall

Anywhere

DRM Technology

EncryptionCreate Digital Content

SEND SET- Content - Access- Metadata - Use Firewall

Digital Content

SET- Access- Use- Track & Report

Anywhere

DRM Concepts

• Identity- Person

- Device- Both

• Authenticate- Content- User name (alias, position, security)- Persona (person, position, use of content)

DRM Technology Concepts• Content & license info included

• Software allows identityPerson, device, or both

• AuthenticateContent

User name (alias, position, security)

Persona (person, position, use of content

DRM Reference ArchitectureContent Server

ContentRepository

ProductInfo

DRMPackager

Client

RenderingApplication

DRMController

Encryption

Content

Metadata

Identity

Encryption

Keys

Rights

License Server

Rights

EncryptionKeys

Identities

LicenseGenerator

FinancialTransaction

With Permission of Bill Rosenblatt, Giant Steps Media Technology Strategies

Functionalities

• Access Controls

• Usage Controls

• Tracking

• Encryption <H>• Subscription <M>• Registration/Password <M>• Click-through <L>

• Read-only <H>• Read & Print <M>• Full <L>

• Watermarking/Digital footprints <H>• Online/Clearinghouse <M>• Voluntary user compliance <L>

DRM Words & Concepts Used

Syndicators“More is best”Solution-based;web deliveredCONTENT- competitive

E-MarketplacesRevenue-based feesOffer Source, type/topic & filtering for one-shot use or streaming

Aggregators“Redistribute, Research, Re-use”Revenue; Proprietary products & softwarePRODUCT-Competitive

Subscription or Pay per use modelsFamiliar database models based on republished rightsTraditional CA & research suppliersUser-based feesLicense embedded in content-biblio, FT & A&I systems

Software“Lock it up”Encrypt; Punitive

EncryptionWatermarkingWrapping technologiesLicensed software fees or percentages of revenue

Services“Make it easy to do the right thing”Requires WEB Browser

Copyright CollectivesLicense rights; Don’t usually deliver the contentSet fees; Percentage of content licensedHonor system

Rights Models

• User authentication• Content integrity• Types of rights • Types of users• Extent of rights• Costs• Tracking• Payment

• GranularityBusiness

Product

Market

Channel

Features

Functionalities

Purchase Options

Updates

“So What” Factors

DRM technologies change how you:• Purchase content• Research • Collaborate with others• Everyday decisions on protecting content• Lead investment and use of DRM for corporate compliance

Business & Behavior

• Piracy & unauthorized copying

• Enterprise Content Management (ECM)• Libraries as institutions or businesses• Coming soon ?

Attitudes & Behavior

Do it Questions Free Disrupt Explain

1990 1992 1997 2003 2006

NamesWWW Texaco P2P P2P decision(s) corporate impact

Verizon

Quotes

• … The biggest whines were about the fact that the e-book couldn’t be duplicated once it was downloaded. It’s an emotional issue. People hate copy protection, partly for good reasons (it’s hard to make legal personal copies) and partly for bad reasons (it’s hard to steal). I received many email messages informing

me that I was greedy, shortsighted and foolish… Scott Adams (Dilbert)

As cited in the recent Association of American Publishers & American Library Association study on e-books and DRM (see list of resources)

Quotes“Piracy has been systematically encouraged by a generous supply of

Internet services, products and tools…. There is no free lunch… In the end when someone gets ripped off… someone else is getting screwed.”

Peter Chernin, CEO Fox Group & President & COO of News Corporation at Comdex 2003

“Is DRM the answer to a question we’re not asking? How do we burn this library down for good?”

Cory Doctrow, Electronic Frontier Foundation at ETECH Conf 2003

“There was lots of talk about value propositions… nobody has come up with a value proposition that customers want/ But they never said the people setting the policy don’t trust or respect the customer. And there are moves afoot to mandate and require DRM so the current customer-unpopular value propositions are shoved down our throat. Did anybody mention this? Nope.

Nathan Torkington, in talking about an software developers’ industry panel

Quotes

… Forgive me for being simple-minded, but I believe that the Number One Preference is not to have DRM at all. There is no 'need to protect the security... there are only self-serving,

short-sighted, greedy and customer-hostile desires to do so. Semi-anonymous liblicense Listserv

… I fear that Digital Rights Management today is Political Rights Management tomorrow… embedding these kinds of technological controls into the very architecture of computing has the capacity to become a form of political control in the not so distant future.

John Perry Barlow, “Wrapped in Crypto Bottles”

Numbers

• 2,804,674 Kazaa downloads per week

• 60M Americans downloaded MP3 files• 500M Worldwide downloads• 220 million Kazaa downloads (5/3/03)• # 1 Downloaded song: In da club- 50 Cent (4/28/03)

• 15% Decline in CD shipments since 2001• 56% Increase in sales of MP3 Players since 2001• 1.7 billion sales of blank CDs 2002• 40% leaked info from inside company (estimated at costing business $6B per year)• 80% software game piracy originates inside company

Current News

Vindictive DRM?

• Music Companies explore software:- Trojan horse (redirects to official site)

- Freeze (program locks computer OS)

- Trackbacks (identify users & sends email)

- Spoofing (sends false music files)

- Denial of service attacks- Silence (Erases legitimate files)

- Interdiction (Prevents use of network while downloading “unauthorized files)

Apprehensions

“…technologies that could be very effective in combating piracy on peer-to-peer networks but are not widely used because some customers … feel uncomfortable with current ambiguities in computer hacking laws” Randy Saaf, President of MediaDefender

Piracy & Unauthorized Copying

Recording Industry Association of America

• Sends letters to 2500 university presidents• Sends Fortune 1000 corporate guide to licensed use, policy & practices• Sends Instant Messages (IM) to millions of “Chat” users from download software sites. Messages warn people that an illegal software download and points them to legal download sites.

Work Functions - Clusters

• Access / Search

• Creation / Collaboration

• Production / Distribution

• Secure

• Track / Report

Content Management

Enterprise Content Management (ECM)

The technologies and tools used to create, capture, customize, deliver and manage content across the Enterprise

Association of Imaging and Information Management (AIIM)

What if?

The way we think about Enterprise Content Management (ECM)m will change…

The technologies and tools used to create, capture, customize, deliver, manage and persistently protect content across the Enterprise

Collaboration – DRM Potential

• Inter & Intra organizations

Microsoft Alters Behavior• NEW … Windows Information Rights Management- Late 2003

Office 2003 – DRM built into Outlook, Excel, WORD, PPTXrML-based standards

• Coming ...Palladium (2004/5)

Embedded in OS (operating system)“Trusted Computing”To succeed, Microsoft needs OED-opt-in & buy-in

• Continuing …Windows Media Player & Windows Media Rights Manager

MusiceBooksStreaming Media/Video

DRM — Markets + Indicators

EARLY MARKET

DEPLOYMENT

ADOPTION

ASSIMILATION

CHASM

DRM — Markets + Indicators

EARLY MARKET

1994 - 2001

Market

Business Models

Standards

Users

Relationships

DRM — Markets + Indicators

CHASM

2001-2002

Market

Business Models

Standards

Users

Relationships

DRM — Markets + Indicators

DEPLOYMENT

2002-2003

Market

Business Models

Standards

Users

Relationships

DRM — Markets + Indicators

ASSIMILATION

IT world changes too fast to predict

DRM — Markets + Indicators

ADOPTION

2005

Market

Business Models

Standards

Users

Relationships

Different Uses

Publishing• Corporate product• PDF, online and e-book

and data formats• Wide variety of devices• Typically, a one way

channel

Enterprise• E-mail• Documents (PDF, MS

Office, Specialized)• Technical drawings • Web portals, internal

and extranet• Collaborative &

business value chains

Cultural Institutions• Heritage Uses

Museums, Archives & LibrariesExamples:

- Library of Congress- OCLC- “Digital Libraries in the Classroom” $9.5 m grant from the Joint Information System Committee & the US National Science Foundation

Standards• Metadata• Applications• Policies

DRM Standards

DOI Digital Object Identifier

• ID for online content• Links source to rights clearance systems• eBook

XrML Extensible Rights Markup Language

• XeroxParc created 1995• ContentGuard licenses and promotes• Microsoft, SONY• Evolving standard

ODRL Open Digital Rights Language

• Created in 2000•Mobile devices

<indecs2> RDD• B2B content rights• Ambitious, cross-media

Applications

• Content management

• Content use (COUNTER Code of Practice)• Categorization software

Numbers

• 97% Library standards and Practices:

Creating/organizing a digital library

Digital rights management and copyright

Metadata

Collection development and management

• 46% Librarians want training in digital rights

OCLC Library Training and Education Market Needs Assessment Study

Outsell, Inc. for OCLC Institute

Libraries Need• Assurance of integrity of product and content

• Solutions for tracking & paying- Make it easy to do the right thing- One-stop solution for licensing, accounting and paying

across multiple databases- Seamless transitions for users to license (charge-back

options) - Licensing options to serve different-users, functions,

technologies, platforms, products

• Library-oriented DRM analysis - Potential, companies, products, markets, costs &

technology

Libraries Need User experience: Make content easy to use

Keep users within your siteIcon on your siteSeamless … LicensedNo payment (Corporate – Need personal or purchasing codes) All formats: Digital, re-license, copy, distribute

TechnologyStandardsAll platforms & scalableEmbedded /wrapped codeBalance pain // gainSecurity levelsOne install vs. multiple expenses & serial installations

Libraries Need

• Compliance (Federal and State)• Accountability• Educational role (eLearning, distance

education)• Instructional requirements for audio, video,

graphics• Mix of original and licensed content• Student-derived works

Public & Institutional Policy

Open Access

• Copyright Commons• Research Commons• Digital Heritage

Institutional Policies

• Copyright – University of Washington• Library as University Publisher-Reuters• Technology Transfer – IP Offices

Digital Rights Policies Include: • Mission

• Institutional policies for academic speech, student behavior, honor codes

• User profile, expectations & behavior

• Content - Do you own the content? Licenses?

• Educational and research prerogatives and priorities

• Technology neutral or specific (as fits)

• People

Balancing Control & Access

• DRM is affects access, copyright and privacy

• Balancing creator’s rights, content vendor copyright, and user needs

• Regulation vs. Market-Control Models

• Nobody wants a “Sony Bono” government imposed DRM solution

Public Policy

• Digital rights are a public policy issue • Public’s attitude towards DRM

- What do they know?

- What do they want?

• Legislative, regulatory & copyright issues around DRM

- Encryption

- Mechanical

- Privacy

- “Reasonable access by reasonable people”

Policy Issues - Privacy

• Institutional-What to do about identifying users?

- Who has access? Internal & External

- Research can see competitive threat: Connecting - identity & use & research strategy

-Device interoperability requires common network identity

• Personal - Reasonable people want reasonable access

- Are privacy & reasonable personal use compatible?

- Does privacy compete with “fair use?” - New groups on the scene representing “consumers”

ResourcesDigital Rights Management- Business and Technology (William Rosenblatt et.al. New York: John Wiley, 2001 ISBN 0-7645-4889-1)

DRM Watch http://www.giantstepsmts.com/DRM%20Watch/tech.htm

What Consumers Want in Digital Rights Management (DRM). (Hill Slowinski. American Association of Publishers and American Library Association, 2003) http://www.publishers.org/press/pdf/DRMWhitePaper.pdf

Or

http://doi.contentdirections.com/mr/aap.jsp?doi=10.1003/whitepaper1

Access Granted: DRM for Brave New World. (Gail Dykstra. Information Highways, April 2003) http://www.econtentinstitute.org/infohighway/0303/toc.asp

ResourcesIt’s All Free (Lev Grossman. Time, May 5, 2003, pp. 60-69)

Software Bullet Is Sought To Kill Musical Piracy (Andrew Ross Sorkin. New York Times, May 4, 2003, pp. 1, 36)

Dykstra Research

gail.dykstra@dykstraresearch.com

10550 NE 29th Street, Suite E

Bellevue, WA 98004

Bus/cell: 425.241.4632

Content Licensing & Digital Rights Management