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March 25, 2009

How DRM Technologies Impact Consumers

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Presentation given at Federal Trade Commission Town Hall on Digital Rights Management, March 2009, Seattle, Washington

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Page 1: How DRM Technologies Impact Consumers

March 25, 2009

Page 2: How DRM Technologies Impact Consumers

Objectives

• What do DRMs govern that users might want to know about?

• What are the trends for each of these?

Digital Rights Management March 25, 2009

Page 3: How DRM Technologies Impact Consumers

Digital Rights Management March 25, 2009

What do DRMs Govern?

• Devices• Identities & authentication• Extents of usage• Usage Information

Page 4: How DRM Technologies Impact Consumers

Devices

• PCs, Macs• Connected devices

– iPhones, DVB phones, Kindles, IPTVs

• Dependent devices– iPods, Sansas, Sony Readers

• Physical media – DVD, Blu-ray, USB storage

Digital Rights Management March 25, 2009

Page 5: How DRM Technologies Impact Consumers

Device Trends

• More connected devices, greater bandwidth

• User’s set of devices grows and changes faster

• Physical media e.g. USB 3.0

Digital Rights Management March 25, 2009

Page 6: How DRM Technologies Impact Consumers

Identities &Authentication

• Users• Devices• Domains

– Groups of devices– Defined by number or geography

Digital Rights Management March 25, 2009

Page 7: How DRM Technologies Impact Consumers

Identity & Authentication Trends

• Domains getting more popular– CE “connected home”

• But rules can be complex– Number/type of devices, proximity

• Rights lockers– Register devices with service provider

• Local vs. server authentication– Server must run indefinitely

Digital Rights Management March 25, 2009

Page 8: How DRM Technologies Impact Consumers

Digital Rights Management March 25, 2009

Extents of Usage

• Durations– Rentals, 24/30 rules, etc.– library checkouts– Subscriptions

• Number of copies or burns

Page 9: How DRM Technologies Impact Consumers

Extent Trends

• Subscription services• Library e-book lending• “Managed copy” rights for physical

media – DVDs,Blu-ray• Video rental terms• Release window compression

Digital Rights Management March 25, 2009

Page 10: How DRM Technologies Impact Consumers

Usage Information

• Collected on device• Sent to service provider• Required for royalty payments• Used for marketing purposes

Digital Rights Management March 25, 2009

Page 11: How DRM Technologies Impact Consumers

Usage Information Trends

• Expected in subscription services• Considered anathema in ownership

services

Digital Rights Management March 25, 2009

Page 12: How DRM Technologies Impact Consumers

Unscientific Poll

• On copyrightandtechnology.com• “How should the FTC regulate disclosure of

content services that use DRM?”1. Mandatory disclosure in detail,

like food ingredient or nutrition lists2. Mandatory disclosure at a high level,

like restaurant menu items3. Mandatory simple rating or logo system,

like MPAA film ratings4. Keep it voluntary

Digital Rights Management March 25, 2009

Page 13: How DRM Technologies Impact Consumers

Poll Results

Digital Rights Management March 25, 2009

39%

31%

15%

15% Mandatory in detail

Mandatory high level

Mandatory logo / rating

Voluntary

Page 14: How DRM Technologies Impact Consumers

Thank You!

• Website:www.giantstepsmts.com

• Blog:www.copyrightandtechnology.com

Digital Rights Management March 25, 2009