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DRM – a ‘neutrality issue’

p2p news / p2pnet: I’m just returning from participating in the OECD’s Future of the Digital Economy conference in Rome. The conference attracted about 350 attendees with all expected companies, lobby groups, NGOs, and governments in attendance. I may write more about the conference next week, but it is worth highlighting my major take-away, namely the clear divisions for what are likely to be the two big battles in this area in 2006 (and possibly beyond).

The first big battle again involves digital rights management (DRM) technologies. While one might be forgiven for thinking that we’re back in 1996 rather than 2006, but DRM came up at virtually every panel. From my perspective, the news is that there is at least some acknowledgement of the problems involving DRM. The privacy, security, innovation, etc. issues are still largely ignored, however, there is a tacit (and sometimes explicit) recognition that DRM has created consumer concerns.

The battle lines revolve around the source of these concerns. For the content companies, the problem lies not with their DRM but rather with the interoperability problems engendered by DRM. They argue that the problem therefore rests with the electronics companies, who insist on releasing devices that won’t recognize all DRM, thus leaving consumers stuck with products that frequently can’t be shifted from device to device. This discussion reminded me of the recent headline during the Canadian election which ran along the lines of "Martin attacks Layton for not attacking Harper." In this context, the not-particularly catchy headline would be "Content companies attack electronic makers for hurting their attack on consumers with their own attack on consumers."

Incredibly, this is described as a "neutrality" issue. The content companies would like a device neutral world (except when they don’t, such as with the broadcast flag) in which DRM will work on all devices. Indeed, there was some discussion about the need for government mandated interoperability.

Another recurring theme at the conference pointed to the other side in this debate. It was remarkable to see the amount of discussion around the growing importance of user-generated content. Although unfortunately tagged as the rise of the "amateur" (or marginally better "creative activation"), there were noteworthy presentations on Creative Commons, the BBC Creative Archive, Flickr, Google Book Search, and blogs (Technorati founder Jason Sifry reported that 75,000 new blogs are being created every day with Japanese emerging as the leading language for blog postings in January – less than 1/3 of blog postings were in English).

Among this group not only is DRM not needed (which drew a response from Intel’s representative who seemed genuinely puzzled at its absence), but it is harmful with negative effects for free expression, user acceptance, as well as privacy and security. This again brought up the growing call for DRM consumer protection that would better protect against DRM misuse.

Given the "buy your senator an ipod" campaign in the U.S., I expect that this is where the battle will be fought. Once everyone in the Senate has an iPod and experiences the limitations of DRM, the response from the content companies will be to blame the consumer electronics industry and to try to force changes to devices, not the DRM’d content itself.

The other big battle will be well known to readers of this blog – network neutrality. The issue surfaced repeatedly in questions and comments as a serious threat to the digital economy. That said, Verizon was on hand to present its IPTV, which looked a lot like a private Internet. It isn’t described as such of course, but we were told that the residents of Keeler, Texas are thrilled with the new high speed lines that permit transmission of high-definition television and other content. Content companies also like it – so much so that Disney was delighted to strike a deal with Verizon to deliver its content in this way. And it turns out that Disney gets more than just fast delivery of content in the bargain as Verizon has agreed to assist them with their IP enforcement efforts.

Ultimately, if the OECD’s conference was unable to arrive at a consensus on the future of the digital economy, it succeeded in highlighting where the future battles will be fought.

Michael Geist
[Geist is the Canada Research Chair in Internet and E-commerce Law at the University of Ottawa. He can be reached by email at mgeist[at]uottawa.ca and is on-line at www.michaelgeist.ca.]

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3 Responses to “DRM – a ‘neutrality issue’”

  1. Reader's Write Says:

    Out of convenience I have just become a DRM fan (or fanatic or freak, or whatever).

    I have solid reasons:

    I’m a prospective author of electronic books. Certainly I don’t want my work freely copied. After all who would buy it if it can obtained for free. My first book will be named “How to make money wrting books for the Internet”.

    I plan to put my books as web pages that can be accesed and read by person who pay me for the acess. No one should be able to print what they see on the screen. So I need DRM for my web pages. I need a DMR that will not allow more than one person to view the screen, if that were technically possible.

    My books, I plan, will be trademarked, copyrighted and patented. This will facilitate my suing whever breaches my rights. That being one of the windows of opportunity for “How to make money writing books for the Internet”. I learned this from, you know who. Without DRM my scam will not work at all.

    I have been told that DRM is only for music and movies, for protecting the content owners of lusy content that cannot stand up without DRM protection. If this were true, is that not discrimination, since I will also be a content owner but will not have the same protection as others have? And none are in the pipeline, because we writers do not have any lobbying muscle, I have been told.

    I also have another question. Assuming I am able to get DRM on web pages through my frined Senator (I am a fundraiser of his, and that helps too) how do I shut it off, the DRM, after I put the works in the public domain after a reasonable 5 to 10 years of exploitation of my writings. Surely as works pass to the public domain the DRM must have a method of shutting off. else you really have perpetual copyright, and I don’t want that, since by nature I’m a philantropist.

    A final issue: Can the DRM freaks tell the Chineese, who in about five years, will manufacture 99 percent of all electronic/computer equiment worlwide, what DRM has to be built in their equipment? Or will the Chineese tell the DRM freaks where they should go?

  2. Reader's Write Says:

    You can not patent or trademark a book.

    They already have DRM for digital books. Microsoft Reader supports encrypted .lit files. Adobe has a form of DRM too. They are both easily circumvented.

    The Chinese are too busy celebrating New Years right now to be bothered with DRM today. Come back tomorrow.

  3. Reader's Write Says:

    First, you are a coward for not joining/signing in and at least showing your S/N.

    Second, if you write your books like you wrote that post I sure as #311 don’t even want to see them on the net and will NOT pay to read them!!!!!

    Third, you are a selfish, self-centered, greedy person. DRM is nothing but pure EVIL!!! All it does is feed greedy ppl like you and keep poor people from being able to enjoy what the rich can. In addition to that, a free sample is a good thing…a way to advertise and maybe draw more buyers. Ever think of that one??? Obviously not :|

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