Report: Digital Rights Management - conditions for success TOC

1. Technical protection and legal background 12

1.1. Technology update 12
- 1.1.1. Technical protection measures (TPM 12
  - Cryptosystems 12
  - Watermarking and tattooing 17
  - Medium access management: the disc 18
- 1.1.2. Digital Rights Management 20
  - Programming language: an indispensable standard 20
  - Copyright integration 23
  - Application of rights and management of digital copying of artistic works 28
1.2. Legal background 31
- 1.2.1. The protection of artists and their works 31
  - "Artists rights 31
  - Copyright 33
- 1.2.2. International legal frameworks 35
  - WIPO (World Intellectual Property Organization) treaties 35
  - The Digital Millennium Copyright Act (DMCA) 37
  - The European Union Copyright Directive (EUCD 37

2. DRM players 39

2.1. Players present 39
- 2.1.1. Content providers 39
- 2.1.2. Technical protection measure (TPM) and DRM providers 40
- 2.1.3. Rights aggregators or licence managers 40
- 2.1.4. Distributors 41
- 2.1.5. Consumer electronic manufacturers 41
- 2.1.6. IT manufacturers 42
2.2. The value chain 43
2.3. Monographs 46
- 2.3.1. Groups and consortia 46
  - Blu-Ray Disc Association 46
  - Content Reference Forum 48
  - Coral 50
  - OMA DRM 52
  - Trusted Computing Group 54
- 2.3.2. Companies 56
  - Adobe Systems Incorporated 56
  - Beep Science 59
  - End2End 62
  - Info2clear 64
  - InterTrust Technologies Corporation 68
  - Macrovision 71
  - Microsoft 76
  - New Digital System (NDS) 80
  - Overdrive 83
  - Philips Electronics 85
  - Real Networks 88
  - RSA Security 91
  - SealedMedia Inc 94
  - SunnComm 98
  - VeriSign 100
2.4. Overview 102
- 2.4.1. Industry players solutions 102
- 2.4.2. The activity of consortia 103

3. Analysis and outlook for content distribution 105

3.1. Usages and the market 105
- 3.1.1. New forms of cultural goods consumption 105
  - The emergence of digital usages 105
  - The age of nomadic usage and mobility 105
  - Digital entertainment and mobile devices 107
- 3.1.2. The case of the virtual music distribution market 110
  - Forms of market structure 110
  - Composition of the offering 110
  - The business model 111
  - Legal distribution on a peer-to-peer basis 112
- 3.1.3. Other virtual distribution markets 118
  - Virtual video games distribution: a slow take-off 118
  - Virtual distribution: the missing major 119
3.2. DRM and content distribution, a key coupling 122
- 3.2.1. Players strategy: service, DRM and codecs 122
  - DRM at the heart of virtual distribution strategies 122
  - DRM interoperability: industry incompatibility! 123
  - Are codecs and DRM indissociables 125
  - Various rights 125
  - Functioning of the iTunes Music Store protection system 128
- 3.2.2. The case of the mobile telephone 128
- 3.2.3. Audiovisual programme protection and rights management 129
  - Access control and domestic networks 129
  - The broadcast flag 131
  - The protection technologies listed below had been registered with and approved by
  - the FCC in August 2004: 133
3.3. Outlook and stakes 133
- 3.3.1. Stakes for users 133
  - Accepting DRM 133
  - The end of private copying 134
  - Interoperability 134
  - A regulatory body for new usages 134
- 3.3.2. The stakes for content providers 135
  - Solvency of demand 135
  - Not abandoning content distribution 135
  - Consolidating a favourable business model 135
  - Rethinking or transposing a commercial policy to fixed or mobile internet 135
  - Rethinking or retaining media chronology 135
- 3.3.3. Stakes for technology providers 136
  - Proving the effectiveness of existing offerings 136
  - Developing a distribution activity 136
  - Adapting DRM systems to new, nomadic usages 136
- 3.3.4. Stakes for online retailers/distributors 136
  - Making existing offerings profitable 136
  - Optical medium versus virtualization 136
  - DRM interoperability 136
- 3.3.5. What are the stakes for consumer electronics? 137
  - Implications related to the incorporation of TPMs in equipment 137
  - Industry organisations 137

List of illustrations

Table 1: CSS 16
Table 2: Examples of security system implementation 28
Table 3: Comparison of two theoretical models 34
Table 4: Online and offline hardware solutions 102
Table 5: Software solutions 102
Table 6: Destination of solutions 103
Table 7: Summarising table on consortia 104
Table 8: Consortia and rights description languages 104
Table 9: Example of revenue breakdown in France 111
Table 10: Major online music distribution offerings 114
Table 11: Main online music distribution offerings in the major markets 117
Table 12: Examples of video on demand services based on film scheduling 121
Table 13: Major audio codecs 125
Table 14: Main services and their content management 126
Table 15: Microsoft system: rights related to file reading 127
Table 16: Microsoft system: expiry of licence to operating rights 127
Table 17: Microsoft system: rights security 127
Table 18: Content protection technologies registered with the FCC 133

List of figures

Figure 1: Horizontal DRM 21
Figure 2: Vertical DRM 22
Figure 3: Smartright system architecture 30
Figure 4: OD2 distribution infrastructure 43
Figure 5: Evolution of the music value chain 45
Figure 6: Examples of multimedia mobile telephones 108
Figure 7: Physical and digital disc distribution 111
Figure 8: Wippit protection system 112
Figure 9: Kryptomusic distribution system 113
Figure 10: Media chronology in France 120
Figure 11: Purple DRM architecture 130
Figure 12: Access control architecture 130

Digital Rights Management - conditions for success

Table of Contents