[Commons-Law] many davids and one goliath

[Lawrence Liang]

> Five Giants in Technology Unite to Deter File
Sharing
> The New York Times
> January 5, 2004
> By JOHN MARKOFF
>
http://www.nytimes.com/2004/01/05/business/05share.html?ex=1074347228&ei=1&en=0376fc19e14b35b7
>
> SAN FRANCISCO, Jan. 4 - The technology and
entertainment industries 
> have long been at odds over the best way to secure
intellectual 
> property rights as digital technology advances.
>
> Now, five of what industry executives say are the
world's most 
> powerful computer, cellphone and electronics
companies are planning a 
> new system for protecting digital music, video and
software from 
> illicit file sharing that they hope will at least
narrow that gap.
>
> A global consortium of technology companies is
laying the groundwork 
> for a campaign to convince Hollywood and the
recording industry that 
> it has finally found an acceptable way not just to
limit the copying 
> of music CD's and movie DVD's, but to protect
digital content in the 
> fast-growing market for hand-held devices capable of
playing music,
> video clips and computer games while wirelessly
connected
> to the Internet.
>
> As these groups prepare to converge on Las Vegas
this week for the 
> annual Consumer Electronics Show - by far the
biggest trade show for 
> the makers of digital devices and the shapers of
what goes into them - 
> the fight over what has come to be known as "digital
rights 
> management'' is expected to move to the back burner,
at least briefly.
>
> That way everyone can celebrate the long-awaited
recovery
> for the consumer electronics and entertainment
businesses that 
> manifested itself in their best holiday buying
season since the late 
> 1990's. But the issue will not go away. The
consortium - known as 
> Project Hudson and made up of Intel, Nokia, Samsung,
Toshiba and 
> Matshushita - plans to announce its new approach in
early February to 
> precede the Grammy music awards and the movie
industry's Academy 
> Awards ceremony, executives say. Unlike the system
used to protect
> DVD content, an Internet-based wireless protection
plan
> could permit users of hand-held devices to share
movie or
> music files on a limited basis or permit files to be
shared
> for promotional purposes. Users could also hear a
song
> before deciding whether to buy it.
>
> For the entertainment industry, the Internet has
often been viewed 
> primarily as a threat because it makes it possible
to transmit copies 
> of just about any original work that can be
converted to digital code 
> to just about anyone in the world. But it is
increasingly being viewed 
> more positively by some entertainment strategists,
who recognize that 
> the Internet's nature as an "always on" medium makes
it
> possible to refine new "digital leashes" to help
ensure
> that copy protection plans are not subverted.
>
> Beyond trying to convince Hollywood and the
recording industry that 
> new technology can prevent illegal sharing of
digital content without 
> unduly restricting use, the consortium's approach
represents an effort 
> to control the standards and garner the rewards from
developing a
> successful system. Project Hudson pits the new group
> against other copy protection systems being advanced
by
> Sony and Royal Philips Electronics, Apple Computer,
> RealNetworks and others. But the most important
target is
> probably Microsoft.
>
> "They would say they are anti-Microsoft forces," a
> recording industry executive close to the companies
said. "The 
> alternative is to sign up with Redmond."
>
> Microsoft, based in Redmond, Wash., is promoting its
own plan, known 
> as the Windows Media Rights Manager. But it has been
held back, in 
> part, by a legal challenge over infringing on
software patents 
> belonging to a smaller American company, Intertrust,
which was 
> acquired in late 2002 by Sony and Philips.
>
> Fears in Hollywood and the recording industry over
Microsoft's 
> potential control had also stalled the software
maker's thrust into 
> the world of digital media. But those fears have
lessened lately, in 
> part because of the emergence of competing
technologies from Apple,
> RealNetworks, Roxio and others. Digital content
providers
> are increasingly finding ways to use some of
Microsoft's
> technology without giving up control of their
content.
>
> "There had been a general fear that Microsoft would
own the entire 
> security stack," said William Randolph Hearst III, a
partner at 
> Kleiner Perkins Caufield & Byers, the prominent
Silicon Valley venture 
> capital firm in Menlo Park, Calif. But companies are
starting to tell 
> Microsoft that they are willing to use only part of
its software 
> protection technologies, he said.
>
> Another new consortium of companies is engaged in an
effort to create 
> a set of standards that will make it possible to
universally 
> distribute digital content across different
platforms and 
> technologies. That group, known as the Content
Reference Forum and 
> backed by Microsoft, Nippon Telegraph and Telephone,
Universal Music 
> Group, VeriSign and others, announced its effort
last month.
>
> The group cites an example of a personal computer
user who wishes to 
> share a digital video file with a friend. Instead of
sending the file 
> directly, the file owner would first send a "content
reference," a 
> digital pointer that permits the file to be
downloaded tailored to the 
> receiver's own country as well as the specific
computer or other 
> playback device. If the file needed to be purchased,
the system
> would perform the commercial transaction before
sending the
> file.
>
> The interest in new copy protection approaches has
also
> been spurred by Apple's successful iTunes music
store,
> which has shown that consumers are willing to put up
with digital copy 
> protection plans that do not seriously interfere
with their ability to 
> enjoy entertainment products easily when and
wherever they want and, 
> within limits, share what they buy.
>
> "If you put up the right kind of speed bump people
will generally 
> honor it," said Mike Godwin, a lawyer who represents
Public Knowledge, 
> a group in Washington that advocates giving
consumers greater weight 
> in the struggle with business interests over
intellectual property 
> rights.
>
> Adding to the interest in developing new copy
protection approaches 
> was Sony's announcement last May that it expects to
introduce a new 
> wireless hand-held device in time for the 2004
holiday buying season.
>
> Sony, with its Walkman line, was once the leading
force in the field 
> of portable electronics, but it has lost a lot of
ground by not 
> keeping up with innovations from others,
particularly Apple's 
> increasingly popular iPod digital music player.
>
> To help itself get back in the game, Sony, which
controls
> its own digital content and technology standards, is
also expected to 
> introduce a smaller audio CD standard.
>
> Other consumer electronics companies consider the
potential popularity 
> of the format a threat, said Richard Doherty, an
industry consultant 
> who is president of Envisioneering of Seaford, N.Y.
>
> After years of separate development of various
hand-held digital 
> devices, industry executives expect music and video
players, 
> cellphones, personal digital assistants and
hand-held video game 
> players to increasingly converge on common portable
platforms. 
> Moreover, such devices will have data networking
capabilities that 
> rival personal computers connected to the Internet
via high-speed 
> cable modems and DSL phone lines.
>
> Sony has a great deal riding on its new hand-held
player.
> Ken Kutaragi, the Sony executive who created the
company's highly 
> successful PlayStation business, has referred to it
as a "Walkman for 
> the 21st century.''
>
> He said the Japanese electronics company was going
to great lengths to 
> create strong data protection plans for what it is
now calling the PSP 
> after facing extensive software piracy of videogame
titles designed 
> for its first generation PlayStation.
>
> Balancing the proliferation of competing digital
> information protection plans is a growing
realization that the 
> industry needs common standards.
>
> That failure is hampering the growth of digital
> technologies, said Leonardo Chiariglione, an Italian
electrical 
> engineer who founded the group that developed the
original MP3 digital 
> audio compression standard widely used to play music
on computers and 
> share it across networks.
>
> "Content should be as transparent as it is today
with MP3," Mr. 
> Chiariglione said. "It should be movable anywhere
and still be 
> protected. If we stay with digital islands people
have a legitimate 
> excuse to piracy.''
>
> -- 
> Roger Clarke             
http://www.anu.edu.au/people/Roger.Clarke/
>
> Xamax Consultancy Pty Ltd, 78 Sidaway St, Chapman
ACT 2611 AUSTRALIA
>                  Tel: +61 2 6288 1472, and 6288 6916
> mailto:Roger.Clarke at xamax.com.au           
http://www.xamax.com.au/
>
> Visiting Professor in the eCommerce Program,
University of Hong Kong 
> Visiting Professor in the Baker Cyberspace Law &
Policy Centre, 
> U.N.S.W Visiting Fellow in Computer Science,
Australian National 
> University
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>




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