DRM  

Doctorow’s First Law

In the meantime, I’ve been filling the time productively by attempting to discover which online booksellers exist to serve the interests of copyright owners, like me, and which ones are seeking to unfairly bind copyright holders (and consumers) to their platforms and, as a result, diminish our negotiating power. I’m happy to say that after much work, I have persuaded three major retailers to offer my e-books without any technology or license conditions that would prohibit my customers from moving the e-books they’ve purchased to a competitor’s device: Amazon, Barnes & Noble, and Kobo.

In the name of the Father and the Son and the Holy Spirit, Amen.  In the one thousand two hundred twenty-ninth year from the incarnation of our Lord, Peter, of all monks the least significant, gave this book to the [Benedictine monastery of the] most blessed martyr, St. Quentin.  If anyone should steal it, let him know that on the Day of Judgment the most sainted martyr himself will be the accuser against him before the face of our Lord Jesus Christ.

http://gotmedieval.blogspot.com/2010/08/medieval-copy-protection.html

Intellectual Property Watch

For example, data collection within the film lecturers and students/researchers community revealed two problems: DRM protection of cinematographic works is leading to difficulties in extracting portions of those works for educational use and those difficulties are triggering isolated acts of self-help for academic and educational purposes.

TorrentFreak

Starting today, Mininova will use a content recognition system that detects and removes torrent files linking to copyright infringing files. The system will also prevent the torrents from being re-uploaded to mininova later on.

Boing Boing

Hey suckers! Did you buy DRM music from Wal*Mart instead of downloading MP3s for free from the P2P networks? Well, they’re repaying your honesty by taking away your music. Unless you go through a bunch of hoops (that you may never find out about, if you’ve changed email addresses or if you’re not a very technical person), your music will no longer be playable after October 9th.

ReadWriteWeb

When the Yahoo! Music Store closes its doors this fall, the company announced today, past customers dependent on their music “phoning home” to get license approval before playing are out of luck. They’ll be able to continue playing purchased tracks on a single computer, until they make any changes to their operating system.

ars technica

Handfuls of Windows Vista Media Center users found themselves blocked from making recordings of their favorite TV shows this week when a broadcast flag triggered the software’s built-in copy protection measures. The flag affected users trying to record prime-time NBC shows on Monday evening, using both over-the-air broadcasts and cable. Although the problem is being “looked into” by both NBC and Microsoft, the incident serves as another reminder that DRM gives content providers full control, even if by accident.

Arstechnica

Filtering all Internet traffic to look for signs of illicit file-swapping has been a hugely controversial idea, criticized on grounds of privacy, efficacy, cost, and long-standing “safe harbor” principles that apply to network operators such as ISPs and phone companies. But a new study out from UK media lawyers Wiggin suggests that, if it works, such filtering could actually curtail “digital piracy” by 70 percent.

Gamasutra –

Below are the results of Reflexive.com sales and downloads immediately following each update:

Fix 1 – Existing Exploits & Keygens made obsolete – Sales up 70%, Downloads down 33%

Fix 2 – Existing Keygens made obsolete – Sales down slightly, Downloads flat

Fix 3 – Existing Cracks made obsolete – Sales flat, Downloads flat

Fix 4 – Keygens made game-specific – Sales up 13%, Downloads down 16% (note: fix made after the release of Ricochet Infinity)

From the results above, it seems clear that eliminating piracy through
a stronger DRM can result in significantly increased sales – but
sometimes it can have no benefit at all. So what does that mean for the
question about whether a pirated copy means a lost sale? The decreases
in downloads may provide a clue to that

As we believe that we are decreasing the number of pirates downloading
the game with our DRM fixes, combining the increased sales number
together with the decreased downloads, we find 1 additional sale for
every 1,000 less pirated downloads. Put another way, for every 1,000
pirated copies we eliminated, we created 1 additional sale.

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BusinessWeek

In a move that would mark the end of a digital music era, Sony BMG Music Entertainment is finalizing plans to sell songs without the copyright protection software that has long restricted the use of music downloaded from the Internet, BusinessWeek.com has learned. Sony BMG, a joint venture of Sony (SNE) and Bertelsmann, will make at least part of its collection available without so-called digital rights management, or DRM, software some time in the first quarter, according to people familiar with the matter.

Businesswire

“SpiralFrog is committed to solving music piracy by changing the way people discover music with free content, an engaging site and finally offering a real alternative to illicit file-sharing,” said Mohen.

“Our Apologies.

At this time, the SpiralFrog Web site is available only to residents of the United States of America and Canada.” sais Spiralfrog.

Back to piratebay.

Music industry attacks Sunday newspaper’s free Prince CD | | Guardian Unlimited Business

The eagerly awaited new album by Prince is being launched as a free CD with a national Sunday newspaper in a move that has drawn widespread criticism from music retailers.

The Mail on Sunday revealed yesterday that the 10-track Planet Earth CD will be available with an “imminent” edition, making it the first place in the world to get the album. Planet Earth will go on sale on July 24.

One music store executive described the plan as “madness” while others said it was a huge insult to an industry battling fierce competition from supermarkets and online stores. Prince’s label has cut its ties with the album in the UK to try to appease music stores.

The Entertainment Retailers Association said the giveaway “beggars belief”. “It would be an insult to all those record stores who have supported Prince throughout his career,” ERA co-chairman Paul Quirk told a music conference. “It would be yet another example of the damaging covermount culture which is destroying any perception of value around recorded music.

“The Artist Formerly Known as Prince should know that with behaviour like this he will soon be the Artist Formerly Available in Record Stores. And I say that to all the other artists who may be tempted to dally with the Mail on Sunday.”

UPDATE 14/16/2007: Weedshare is officially dead

“Shared Media Licensing operates the DRM technology known as “Weed.” When a file is protected by Weed technology, that file may be played up to 3 times for free. After this, if the user wishes to continue to play the file, he or she must pay for it. The price for any given file is set by the rights holder. The file can be copied to other users for free, whether across the Internet or otherwise. If the file is copied onto another machine, the file can be played 3 times without payment. When a user purchases a file, the rights holder receives 50% of the money paid by the purchaser and 15% of the purchase price goes to Shared Media as a processing fee. The remaining 35% of the purchase price is shared among those who previously purchased and distributed the music. This payment system is designed to encourage users to actively distribute authorized files.
Heart supports the use of peer-to-peer technology and believes that it is a very efficient means of distributing music. Encrypted with “Weed” technology (www.weedshare.com), “Jupiter Darling” was released on the Internet and has been shared on P2P networks. Heart’s “Weed” files outsold those on Apple’s iTunes during the third week of their availability on both services.” – Mark N. Cooper

http://www.weedshare.com/

Market capitalization
Cisco: 162.24B, Time Warner: 78.95B

2006 Gross Profit
Cisco:

18.747B, Time Warner:
17.811B

Cisco addresses legit P2P in Supervisor enhancement – CBRonline.com

Cisco Systems has unveiled both a product enhancement and a series of architectural templates to enable enterprise networks to address the challenge of legitimate peer-to-peer apps such as the Groove feature in Microsoft Office.

The product side of the announcement involves a deep packet inspection capability, delivered via a hardware upgrade to the Supervisor engine on its flagship 6500 switches, essentially introducing additional Cisco-designed ASICs to handle “DPI at multi-gigabit rates,” said Neil Walker, the company’s head of product marketing for core and foundation technologies in Europe.

There arises a need to be able to differentiate between good P2P and bad, which is where the Programmable Intelligent Services Accelerator (PISA) upgrade to Supe32 comes in. “It’s akin to what we’re doing on the carrier side with the P-Cube technology for broadband policy management,” said Walker.

“There the carrier can determine who you are, what you’re doing and the bandwidth you’re consuming to do it. In this case, we’re enabling enterprises to enable wanted P2P and block the unwanted,” he went on. “For instance, two employees might be allowed to exchange IM messages, but not if one of them has just accessed some sensitive data on an internal database.” PISA is not, however, in any way based on the P-Cube technology, but rather the result of internal development, he went on.

CE Pro §

Manufacturers, dealers, and champions of digital rights everywhere can rejoice: Video server maker Kaleidescape has beaten the DVD Copy Control Association (DVD CCA).

The DVD CCA, which licenses the Content Scramble System (CSS) for protecting DVDs, had claimed that Kaleidescape breached a contract when it created products that enable (indeed encourage) individuals to copy protected DVDs onto hard-drive servers.

Kaleidescape argued, first and foremost, that nothing in the DVD CCA licensing agreement prohibits the development of products that allow users to copy their DVDs. (For the full background, see “Copy Protection Group Sues Kaleidescape.”)

Indeed, that’s exactly what Judge Leslie C. Nichols ruled today in the non-jury trial at the Downtown Superior Court of Santa Clara in San Jose, Calif.: There was no breach of contract.

Microsoft changes tune on selling DRM-free songs

Following digital music pioneer Apple Inc.’s lead, Microsoft Corp. said it will soon sell digital music online without digital rights management (DRM) protection.

Microsoft’s apparent change of heart on selling DRM-free music came in response to Apple’s deal earlier in the week to sell unprotected content from recording company EMI Group PLC. The company previously claimed that DRM was necessary for current and emerging digital media business models.

“The EMI announcement on Monday was not exclusive to Apple,” said Katy Asher, a Microsoft spokeswoman on the Zune team, in an e-mail to the IDG News Service today. She said Microsoft has been talking with EMI and other record labels “for some time now” about offering unprotected music on its Zune players in an effort to meet the needs of its customers.

“Consumers have made it clear that unprotected music is something they want,” Asher said. “We plan on offering it to them as soon as our label partners are comfortable with it.”

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In a major break with the music industry’s longstanding antipiracy strategy, EMI Group PLC is set to announce today that it plans to sell significant amounts of its catalog without anticopying software, according to people familiar with the matter.

The London music company is to make its announcement at a London news conference featuring Apple Inc. Chief Executive Steve Jobs. EMI is to sell songs without the software — known as digital rights management — through Apple’s iTunes Store and possibly through other online outlets.

Music executives judge Jobs, lament losses | CNET News.com

Apple, digital rights management (DRM) and the public’s willingness to pirate music were discussed, debated and lamented once more by attendees of the Digital Music Forum East conference.

“We’re running out of time,” Ted Cohen, managing director of music consulting firm TAG Strategic, told the roughly 200 attendees. “We need to get money flowing from consumers and get them used to paying for music again.”

The call to arms by Cohen, who was moderating a panel discussion titled “The State of the Digital Union,” comes as the music industry suffers through one of the worst slumps in its history.

CD sales fell 23 percent worldwide between 2000 and 2006. Legal sales of digital songs aren’t making up the difference either. Last year saw a 131 percent jump in digital sales, but overall the industry still saw about a 4 percent decline in revenue.

That has the industry pointing fingers at a number of things they believe caused the decline.

At the opening of the conference, some of the panel members lashed out at Jobs. Members said Jobs’ call three weeks ago for DRM-free music was “insincere” and a “red herring.”

“Imagine a world where every online store sells DRM-free music encoded in open licensable formats,” Jobs wrote in a letter that rocked the music industry. “In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players. This is clearly the best alternative for consumers, and Apple would embrace it in a heartbeat.”

Jobs’ position was perceived by many in the music industry as a 180-degree shift in direction. The view expressed at the conference is that Apple has maintained a stranglehold on the digital music industry by locking up iTunes music with DRM.

Cohen told the audience that if Jobs was really sincere about doing away with DRM, he would soon release movies from Disney–the studio Jobs holds a major stake in–without any software protection. An Apple representative declined to comment on Tuesday on remarks made by the panel.

Panel member Mike Bebel, CEO of Ruckus music service, said: “Look, I don’t think anybody is necessarily down on Apple. The problem is the proprietary implementation of technology…and it’s causing everybody else who is participating in the marketplace–the other service providers, the labels, the users–a lot of pain. If they could simply open it up, everybody would love them.”

The role of DRM
Panel members–who included Thomas Gewecke, Sony BMG senior vice president, and Gabriel Levy, general manager of RealNetworks Europe–were divided about what the music industry should do about DRM in general.

Most of the panel members, save for Greg Scholl, CEO of independent music label The Orchard, believe that some form of DRM is necessary.

Scholl said flatly that DRM doesn’t work. “The idea that DRM gives us choice isn’t right,” he said.

“The economics of the business are over for good and aren’t ever going to be the way they were before,” Scholl said. This is a position that some in the music industry are starting to warm up to.

In January, EMI said it was reviewing a request
by the Electronic Frontier Foundation to allow reverse engineering of
its digital rights management software. That EMI would even consider
the proposal was seen in many circles as a step forward by the anti-DRM
camp.

Gewecke also defended record labels against the criticism that the
music industry has its head in the sand and just doesn’t understand the
Digital Age. He said that Sony BMG is working with technologists and
retailers, and is constantly is looking for technological solutions to
some of the industry’s problems.

He also said that despite all the bad news, there’s plenty for the sector to be encouraged about.

“We
routinely talk to companies about what’s different,” Gewecke said.
“We’re constantly looking for where value is being created in a
business model. We are being flexible. There’s still an evolution that
has to happen. I say it’s an optimistic time considering there’s more
music being listened to now than ever before. There’s more
opportunities to monetize the music. We want to be out there looking
for new ideas and companies.”

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