Managing Rights Management

Cable Labs and Clause DRM and Blockchain Patent Applications

New pending patent applications are published by the USPTO on Thursdays Today we continue our Spotlight Application focus on digital rights management broadly construed and blockchain (distributed ledger) technologies. Assigned to Cable Labs (see also these), the first of today's applications discloses techniques for blockchain virtualization and scalability. Assigned to Clause, the second application discloses techniques for forming, storing, managing, and executing contracts.

The Real McCoy and Comcast DRM and Blockchain Patent Applications

We continue the theme of patent applications combining blockchain (distributed ledger) and digital rights management broadly understood. Assigned to The Real McCoy, the first of today's Spotlight Applications address techniques for establishing, securing and transferring computer readable information using peer-to-peer public and private key cryptography. Assigned to Comcast, the second of today's applications addresses techniques for distributed data access control.

IP Squared and Adobe DRM Patent Applications

Thursdays the PTO publishes new pending patent applications. Both of the Spotlight Applications presented address aspects of digital rights management. Assigned to IP Squared Technologies, the first application discloses techniques for managing data assets associated with peer-to-peer networks. Assigned to Adobe, the second application discloses a digital rights management retrieval system.

Microsoft and Huawei DRM Patent Applications

Happy Thanksgiving to all. Notwithstanding the holiday, the PTO publishes new pending patent applications on Thursdays. Both of today's Spotlight Applications concern aspects of digital rights management. Assigned to Microsoft, the first application discloses techniques for managing distributed operating system physical resources. Assigned to Huawei (CN), the second application discloses techniques for configuring access rights, control point, device and communication system

NEC and Vringo DRM Patent Applications

Thursdays the Patent Office publishes new pending patent applications. Both of today's Spotlight Applications concern aspects of digital rights management. Assigned to NEC (JP), the first of today's applications discloses an access management system for mobile and enterprise systems. Assigned to Vringo Infrastructure, the second application discloses techniques for Copyrights with post-payments for P2P file sharing.

Intertrust and Microsoft DRM Patents

On Tuesdays the USPTO issues new patents. Both of today's Spotlight Patents addresses aspects of digital rights management. Assigned to Intertrust (Hi Talal), the first patent concerns techniques for retrofitting electronic appliances to accept different content formats. Assigned to Microosoft, the second patent concerns peer-to-peer networks with protections.

Verizon and Cyberlink DRM Patent Applications

On Thursdays the USPTO publishes new pending patent applications. Both of today's Spotlight Applications concern aspects of Digital Rights Management. Assigned to Verizon, the first application discloses techniques for peer-to-peer content distribution with digital rights management. Assigned to Cyberlink (TW), the second application discloses techniques for the secure execution of code using a hardware protection module.

Protected Data Path and BitTorrent (P2P) Related DRM Patent Applications

On Thursdays the USPTO publishes new patent applications. Both of today's Spotlight Applications concern aspects of DRM. The first application discloses techniques for validating protected intra-system interconnects for DRM, no assignee given. The second application discloses techniques for digital rights protection in BitTorrent-like P2P systems, assigned to George Mason University.

Vanishing Act

The NYTimes article on reports on the work of University of Washington computer scientists on "self-destructing messages."

Vanish uses a key-based encryption system in a different way, making it possible for a decrypted message to be automatically re-encrypted at a specified point in the future without fear that a third party will be able to gain access to the key needed to read the message.

The pieces of the key, small numbers, tend to “erode” over time as they gradually fall out of use. To make keys erode, or timeout, Vanish takes advantage of the structure of a peer-to-peer file system. Such networks are based on millions of personal computers whose Internet addresses change as they come and go from the network. This would make it exceedingly difficult for an eavesdropper or spy to reassemble the pieces of the key because the key is never held in a single location. The Vanish technology is applicable to more than just e-mail or other electronic messages. Tadayoshi Kohno, a University of Washington assistant professor who is one of Vanish’s designers, said Vanish makes it possible to control the “lifetime” of any type of data stored in the cloud, including information on Facebook, Google documents or blogs. In addition to Mr. Kohno, the authors of the paper, "Vanish: Increasing Data Privacy with Self-Destructing Data," include Roxana Geambasu, Amit A. Levy and Henry M. Levy.

In a posting on Dave Farber's Interesting Persons list, Ed Garek observes:

Congratulations on the NYT article. However, the significant point of using a trust model that does not depend on the integrity of third parties is not new, while relying on a peer-to-peer network for "key hiding" is by itself an unsolved problem today (both technically and commercially). The free "Zmail Basic" listed in "Ten Free Services To Send Self-Destructing Emails Which Expire/Disappear Automatically After Specified Time Interval" ... also uses a trust model that does not depend on the integrity of third parties but the novelty there is that keys are not stored anywhere (each dialogue party holds a part of it), and uses a system of "minority control" to allow independent destruction of the capability to reassemble the entire key.

Fingerprinting and Watermarking Patent Applications

On Thursdays the USPTO publishes new pending patent applications. Today's Spotlight Applications concern various aspects of digital fingerprinting and watermarking. Assigned to Barracuda, the first application discloses techniques for Peer-to-Peer traffic control using fingerprinting. Assigned to the Korea Advanced Institute of Science and Technology, the second application discloses techniques for reversible image watermarking based on integer to integer wavelet transforms.

Hearing In RIAA Copyright Case Postponed - RIAA Appeals

The hearing previously scheduled for today in the RIAA instigated law suit against Joel Tennebaum (Sony BMG Music Entertainment v. Tenenbaum) has been postponed to allow the RIAA to appeal Judge Nancy Gertner's decision to allow the hearing to be webcast.

Subscriber's Email Address Remains In DRM-Free Tracks From iTunes

Writing on CNet.UK, Nate Lanxon says that all though DRM has been removed from iTunes tracks, consumers should be aware that these files do still have the email address of the iTunes subscriber.

Although iTunes Plus files feature no copy protection, files downloaded still contain the email address you have registered with iTunes. So although files can physically be shared with, and played by, friends and family, any of your purchases that end up on file-sharing networks, for example, can be traced back to you.

If you're interested in an easy way to check your own files, find an iTunes Plus file on your computer. Then choose to open it with a text editor (Windows Notepad works fine). It'll take a while to open and will appear to be full of nonsense text, but if you choose the 'Find' option and type in the email address you have registered with the iTunes Store, you'll find that your DRM-free music is not personal information-free.

Apple Drops DRM, Adopts Variable Pricing

Apple has dropped the use of its FairPlay DRM that restricted the number of copies that could be made of music tracks while adopted variable pricing and giving pricing control back to the labels. This Variety article has a good summary of the situation.

Since the labels are throwing in the towel on DRM for music, it's not so surprising that the RIAA appears to be shifting its focus as well. After all, FairPlay DRM was pretty effective in protecting music obtained from iTunes. It now makes even less sense for the labels to pursue individual file sharers and colleges and universities since eliminating FairPlay DRM can be interpreted as encouraging file sharing, or at least not discouraging it.

WSJ: RIAA Drops MediaSentry, Picks Up DtecNet

The Wall Street Journal reports that the RIAA has dropped MediaSentry (Safenet), an application that finds and documents copyrighted music on consumer and student PCs. The information is then used as evidence in the RIAA-instigated lawsuits against individuals. Instead, the RIAA will use software or servies from Danish software provider DtecNet.

The RIAA announced last month that it planned to curtail its practice of filing mass lawsuits for copyright infringement. However, it still plans to closely monitor people it believes are illegally uploading copyrighted music, and continue with the legal action it already has in progress. It says it will still file lawsuits for exceptional cases.

In place of MediaSentry, the RIAA says it will use Copenhagen-based DtecNet Software ApS. The music industry had worked with DtecNet previously both in the U.S. and overseas, and liked its technology, said RIAA spokesman Jonathan Lamy.

Obviously, this apparent change in strategy and technology doesn't do anything to fix the record industry's broken business model.

RIAA Stops Suing Consumers - Not!

The NYTimes and other outlets reported that the RIAA is ending its lawsuits individual music downloaders. Not so, says Slashdot:

According to a report on Wired.com, the RIAA spokesman claims that the RIAA has not filed any new lawsuits "for months"; according to the Wall Street Journal report the RIAA stopped filing mass lawsuits "early this fall"; and the Associated Press was apparently told that the RIAA had stopped bringing new lawsuits in August.

Being very familiar with the RIAA's penchant for "misspeaking", even when under oath, I investigated the matter a bit, and learned that a large number of suits have been brought by the RIAA quite recently, one as recently as this Monday.

Turning ISPs into the content police won't work either. To repeat: the business model is broken. Unless and until the music industry figures out other ways to monetize, all of these efforts must fail.

To borrow from Pete Seeger, when will they ever learn.

CNET: The RIAA's Letter to ISPs

cnet.com has obtained a copy of letters sent by the RIAA to ISPs regarding P2P downloading of music files.

Please bear in mind that this letter serves as an official notice to you that this network user may be liable for the illegal activity occurring on your network. This letter does not constitute a waiver of our members' rights to recover or claim relief for damages incurred by this illegal activity, nor does it waive the right to bring legal action against the user at issue for engaging in music theft. We assert that the information in this notice is accurate, based upon the data available to us. Under penalty of perjury, we submit that the RIAA is authorized to act on behalf of its member companies in matters involving the infringement of their sound recordings, including enforcing their copyrights and common law rights on the Internet.

It's unfortunate that the major labels do not recognize that their fundamental business model is substantially broken and that these rear guard actions will not put humpty dumpty back together again. The money spent would be far better used to work toward thinking through the challenging problems that come with business model change and then implementing a new course.

Textbooks Shared On BitTorrent

[tip o' the hat to Farber's IP list]. The Chronicle of Higher Education reports that the Association of American Publishers (AAP) is increasingly concerned about the use P2P BitTorrent to share textbooks.

One Web site, called Textbook Torrents, promises more than 5,000 textbooks for download in PDF format, complete with the original textbook layout and full-color illustrations. Users must simply set up a free account and download a free software program that uses a popular peer-to-peer system called BitTorrent. Other textbook-download sites are even easier to use, offering digital books at the click of a mouse.

How The RIAA Battles Piracy: Sound and Fury Signifying Nothing

Reuter's Susan Butler wrote an in-depth account of the RIAA.'s efforts to curb piracy that is well worth reading. Whether their efforts will have any long lasting effect is debatable. By all accounts, the music industry is doing well. It's the record / CD business that's broken. The business model hasn't worked since Armageddon arrived: broadband, high quality compression, and inexpensive storage.

Despite the RIAA's efforts, data suggest that demand for pirated content remains strong. A recent NPD Group report estimates that 19% of U.S. Internet subscribers 13 and older download free music from P2P services, barely less than the 20% reported when the RIAA began its user litigation campaign in 2003.

As noted in these pages, similar efforts by the MPAA are inaccurate. Researchers recently got them to accuse three laser printers of piracy. Perhaps toasters and coke machines are next.

Colligo and InterTrust Fingerprinting and Watermarking Patent Applications

On Thursdays, the USPTO publishes new patent applications. Today's Spotlight applications address the use of watermarking and fingerprinting. Assigned to Colligo Networks, the first application discloses techniques for codeword-enhanced P2P authentication. The second application is another divisional (same specification, different claims) of the InterTrust trusted and secure item delivery (including e-mail) application (one of mine).

M.P.A.A. Accuses Laser Printers of File Sharing Copyright Violations - Really

Brad Stone's NYTimes blog entry describes research conducted by Tadayoshi Kohno, an assistant professor, Michael Piatek a graduate student, and Arvind Krishnamurthy, a research assistant professor, all at the University of Washington. The research was directed toward understanding  how the M.P.A.A. identifies those who received nastygrams from the trade association. Stone blogicle says:

Comcast Capitulates On Net Neutrality

According to this NYTimes article and other sources, Comcast has said that it will move to application neutral network management and disclose publicly its bandwidth management techniques. Tests by the Associated Press and the Electronic Frontier Foundation (among others) showed that Comcast was disrupting P2P traffic with forged packets.

The company initially veiled its traffic-management system in secrecy, saying openness would allow users to circumvent it. But on Thursday, Werner said the company would ''publish'' the new technique and take into account feedback from the Internet community.

Comcast has been hampering the BitTorrent file-sharing protocol, which together with the eDonkey protocol, accounts for about a third of all Internet traffic, according to figures from Arbor Networks. The vast majority of that is illegal sharing of copyright-protected files, but file-sharing is also emerging as a low-cost way of distributing legal content -- in particular, video.

EXCLUSIVE - Macrovision's Eric Rodli Comments On Slysoft's Claimed Break of BD+

As noted here yesterday, Slysoft claims that it's AnyDVD (HD) 6.4.0.0 software will remove the BD+ security component of Blu-ray HiDef optical discs. When asked for a comment, Eric Rodli, Macrovision's Executive Vice President & General Manager of Entertainment, had this to say via email:

“Macrovision does not comment on specific techniques or procedures that may directly impact the BD+ security technology.  BD+ is a security response system designed to react to security attacks, not prevent them entirely.  As part of this system, updated BD+ security code is continuously developed so that BD+ customers obtain ongoing value from the use of this technology.”

One of the major benefits of BD+ is that it is programmable security. Thus the cat and mouse game between those who apparently encourage piracy and the major studios and their technology partners remains intact.

Verizon Set To Improve Legal P2P File-sharing

According to the AP and NYtimes, Verizon is set to announce later today support for legal P2P filesharing companies and applications. Working with companies that use P2P and researchers at Yale University, Verizon will reportedly help P2P applications make more efficient use of the Net.

Verizon shared details about the structure of its network with the researchers and Pando in the ''P4P Working Group,'' created last summer, and they together created a system that connected users not randomly, but to other users close by.

In a traditional P2P network, if a Verizon customer downloads a file, only 6.3 percent of the data will come from another Verizon customer in the same city, said Doug Pasko, senior technologist at the company. In the ''P4P'' trial, 58 percent of the data came from nearby Verizon users, vastly reducing the company's cost of carrying the traffic.

Morning Session Main Points

This morning's session boiled down to whether Comcast and cable operators can manage their network by discriminating against specific applications such as Bit Torrent. Some argued that such discrimination is OK as long as the application discrimination is disclosed to consumers. Others argued that in a duopoly, disclosure isn't sufficient.  Therefore, Comcast and other, mostly cable ISPs, should be prevented from discrimination against specific apps.

It was also noted that the deep packet inspection technologies apparently being used to interfer with P2P traffic can also be used for content filtering and abridgment of speech not that anyone is doing that in the US.

We're off to the engineering session.

Markey's Comments

Congressman Ed Markey's comments include an emphasis on free markets as the foundation for solving bandwidth and pricing issues. This should be No Country For Old Broadband. And Bit Torrent should not be Bit Trickle.

Also, check out the SaveTheInternet.com site and their FAQ on Net Neutrality.

Blogging From The FCC Hearing on Net Neutrality

I'm at the Havard Law School today. Thanks to the Berkman Center for Internet & Society, the FCC is conducting a public en banc hearing at the Harvard Law School on Net Neutrality (NN) and broadband management. There will be a live audo feed for those interested. I'll be blogging comments from time to time.

Switzerland Warns File Trackers

InfoWorld reports that the Swiss government has warned Logistep, a company that tracks file sharers, that its tactics may be illegal under Swiss law. Identifying file sharers is part of global antipriracy efforts that in the view of some compromises the privacy of individuals.

Logistep, which supplies information on suspected file sharers to law firms around the world for use in copyright violation cases, has until Feb. 9 to respond to the Federal Data Protection and Information Commissioner (FDPIC), said Marc Schaefer, the agency's legal advisor.

Under Swiss law, the identity of a subscriber to an ISP can only be revealed during the course of a criminal case, not a civil one, Schaefer said. The IP address of a computer controlled by the subscriber is considered "personal" information.

Comcast P2P Traffic Interference Update

[Tip o' the hat to Dave Farber's IP list] A detailed and useful EFF report on Comcast's use of packet forgery and other techniques to interfere with P2P traffic is here. The report says that  the consequences of packet forgery include:

Comcast's interference is potentially troubling as well to the extent it may hobble potential competitors deploying next-generation video distribution services. BitTorrent Inc., for example, now distributes films under license from Hollywood movie studios and thus competes with Comcast's cable TV products. Similarly, Vuze, which recently filed a petition with the FCC for rule-making regarding Comcast's interference practices, also sells downloads from a huge library of licensed content, using BitTorrent as a distribution mechanism. Other companies and products, such as Joost and Miro, also rely on P2P protocols that are similar to those that are being impeded by Comcast.... [footnote omitted]

Writing on Alternet.org, Annalee Newitz says about Comcast's interference:

Goldman Sues PirateBay For Lost Royalties On O.J. Simpson Book

The Associated Press reports that Fred Goldman, father of slain Ron Goldman, is suing the Swedish site The Pirate Bay over alleged lost royalties from O.J. Simpson's book, If I Did It: Confessions of the Killer.

Although Goldman's attorneys have sent a letter demanding the Web site's operators stop posting the book, the defendants have indicated "they are not subject to the laws of the United States," the lawsuit said.

The lawsuit seeks to recover profits from the "illegal publication" and suggests The Pirate Bay receive advertising money from such American companies as Wal-Mart, Target, Jamster and The Wall Street Journal.

FCC Urged to Stop Comcast Internet Blocking

CNet reports that a coalition of Internet scholars and interest groups has petitioned the FCC to stop Comcast from continuing to disrupt P2P traffic on their network. Sadly,

But the truth is there isn't much that the FCC can do at this point. Under the current regulations and laws, the FCC has little to no power to do anything, even if it becomes blatantly obvious that Comcast is intentionally blocking traffic. The reason is simple. The FCC Internet policy is simply that. It's a policy. And there is no real enforcement muscle behind it that would require Comcast to do anything. So until a Net neutrality law is passed or the FCC imposes some kind of regulation or rule, which Chairman Kevin Martin has been adamantly opposed to doing, not much is likely to come of this complaint.

It would be outstanding if someone could find a rationale for seeking an injunction against Comcast to prevent this kind of disruption.

I'm not sure that they interfere only with BitTorrent traffic. My file transfers with another Comcast subscriber using AOL's AIM slow down to a crawl most of the time.

Comcast Admits Delaying Some Traffic While Confessing to Some Blocking

In response to accusations by the Associated Press and EFF that it interrupts certain P2P traffic on its network, Comcast denied blocking BitTorrent traffic. Instead, the nations largest ISP said that it employs traffic shaping technologies to manage bandwidth during peak traffic times.

According to the Associated Press, however, a Comcast spokesperson acknowledged that it does exactly what the AP and EFF accused it of doing:

On Tuesday, Mitch Bowling, senior vice president of Comcast Online Services, added a nuance to that statement, saying that while Comcast may block initial connection attempts between two computers, it eventually lets the traffic through if the computers keep trying.

"During periods of heavy peer-to-peer congestion, which can degrade the experience for all customers, we use several network management technologies that, when necessary, enable us to delay — not block — some peer-to-peer traffic. However, the peer-to-peer transaction will eventually be completed as requested," Bowling said.

The explanation is not inconsistent with the AP's tests. In one case, a BitTorrent file transfer was squelched, apparently by messages generated by Comcast, only to start 10 minutes later. Other tests were called off after around 5 minutes, while the transfers were still stifled.

Frequently my file transfers using AIM to other Comcast customers are slowed to a crawl, apparently by Comcast's traffic shaping.  Too bad there is no Verizon FIOS or RCN in my building.

AP Confirms Comcast's P2P Filter

The Associated Press reports tests confirming that Comcast interfers with P2P subscriber traffic. Additional tests indicate that Time Warner Cable, Cablevision, and a business class connection to AP headquarters did not interfere with the same P2P file transfers.

The article suggests that Comcast is using technologies from Sandvine to interfere with the P2P traffic:

Comcast subscriber Robb Topolski, who discovered the blocking earlier this year and traced it to reset packets, pointed out that a Canadian company called Sandvine Inc. sells equipment that promises to save bandwidth for Internet service providers by managing and redirecting file-sharing traffic.

BitTorrent Inc. President Ashwin Navin said that the interference method on Comcast's network is consistent with Sandvine's technology. Sandvine did not respond to a request for comment.

Comcast spokesman Charlie Douglas would not confirm that the company uses Sandvine equipment.

Comcast Blocking Or Delaying P2P Traffic

The Associated Press reports that Comcast blocks and/or delays P2P traffic when its subscribers try to upload an entire file to another Comcast subscriber.

Comcast's technology kicks in, though not consistently, when one BitTorrent user attempts to share a complete file with another user.

Each PC gets a message invisible to the user that looks like it comes from the other computer, telling it to stop communicating. But neither message originated from the other computer -- it comes from Comcast. If it were a telephone conversation, it would be like the operator breaking into the conversation, telling each talker in the voice of the other: "Sorry, I have to hang up. Good bye."

So much for net neutrality. 

Let's see if litigation follows.

Music Label Victory Case Appealed

A variety of news sources report that the verdict in favor of the major music labels in the Thomas downloading case will be appealed.  Declan McCullagh has a good analysis of why they won. Among his points:

3. "Making available." Jury Instruction 15 is more important. It says that the RIAA doesn't need to offer any evidence that rapacious Kazaa users actually downloaded songs from Thomas' computer. All they need to do is claim that Thomas left the songs in a publicly accessible directory where they could have been downloaded. Big difference.

This is not an outlier, by the way. A Pennsylvania judge came up with the same making-available-is-infringement conclusion in February. Marybeth Peters of the U.S. Copyright Office has argued that "making (a file) available for other users of a peer to peer network to download... constitutes an infringement of the exclusive distribution right, as well of the reproduction right." Judge Davis' interpretation of the law may not be the only one, but it's a defensible one. Here's his reasoning.

Music Labels Win Download Copyright Infringement Case,

The AP reports (via Yahoo) that a jury has found for the music labels in the Minnesota download case.  Defendant Jammie Thomas was ordered to pay $9,250 for each of 24 recordings, or a total of $222,000. Most other law suits have apparently been settled for a few thousand dollars.

The outcome may give individuals who are sued by the labels some pause before refusing to settle similar cases.

Music Download Trial Begins In Minnesota

The Associate Press reports (via Excite.com) that the first actual trial alleging  copyright infringement for P2P filesharing is underway in Dulluth, MN. The plaintiffs are Sony BMG,  Arista Records LLC, Interscope Records, UMG Recordings Inc., Capitol Records Inc. and Warner Bros. Records Inc. The RIAA is not a party to the litigation.

Hollywood Tests Watermark Technologies

Brad Stone reports in the NYTimes on Movielab's testing of several watermarking technologies. According to Prof. Leonard Kleinrock, one firm's technology was better than the rest. Goodness was judged by maximizing true positives (detecting a watermark when present) and minimizing false negatives (failing to detect when present) and false positives (detecting when not actually present). Movielabs declined to identify the company with the best performing watermark technology.

Nevertheless, afterwards, executives from Santa Clara, Calif-based Vobile were crowing in the hallways of the Universal Hilton Hotel.

The two-year old company’s technology, called Video DNA, has apparently bested others from the Royal Philips Electronics, Thomson Software & Technology, and the highest profile digital fingerprinting company, the Los Gatos, Calif.-based Audible Magic, which has deals to filter video sharing sites like YouTube and Microsoft’s Soapbox.

MPAA accuses TorrentSpy of concealing evidence

This according to Greg Sandoval's blog posting on CNet.

Jacqueline Chooljian, a federal judge in the Central District of California in Los Angeles, issued the decision while presiding over a court fight between the studios and TorrentSpy, the BitTorrent search engine accused of copyright infringement in a lawsuit filed last year by the film industry. On May 29, Chooljian ordered TorrentSpy to begin logging user activity, including IP addresses, and turn the data over to the Motion Picture Association of America (MPAA)....

This may be the first time that anyone has argued that information within RAM is electronically stored information and therefore subject to the rules of evidence, Chooljian said according to court records. Up to now, many Web sites that promised users anonymity, such as TorrentSpy, believed they need only to switch off their servers' logging function to avoid storing user data.

Court-enforced logging. Auto-deposition? Hmmm. Maybe a lawyer can explain why this doesn't violate the prohibition against self-incrimination. After all, entities are Persons under current law. I suppose that because this is part of the pretrial discovery process it passes muster.

Skype Deconstructed / Hacked

[tip o' the hat to Dave Farber's IP list].

Phillipe Biondi and Fabrice Desclaux have reversed engineed Skype. The details are in a highly technical presentation online here. Skype apparently makes use of several software obsfucation techniques and defensive security mechanisms. For those interesting in details, worth the read.

Keeping Honest People Honest

The BBC has published a Q&A with entertainment industry execs that's worth reading. The questions cover a broad range of topics, including: Why not have simultaneous global release; What's being done to save cinemas; Why not illegally download; Why have region encoding on DVDs; and What's the point of DRM?

The response of the MPAA's Dan Glickman is noteworthy:

Content owners use DRMs because it provides casual, honest users with guidelines for using and consuming content based on the usage rights that were acquired. Without the use of DRMs, honest consumers would have no guidelines and might eventually come to totally disregard copyright and therefore become a pirate, resulting in great harm to content creators.

DRMs' primary role is not about keeping copyrighted content off P2P networks. DRMs support an orderly market for facilitating efficient economic transactions between content producers and content consumers.

There's some truth to this point of view.

2005 Winners and Losers - P2P

Thomas Mennecke's end of the year review of P2P winners and losers is worth a look.

Winners: BitTorrent, Apple Computer, LimeWire, Open Source P2P, and thePirateBay.

Losers: RIAA, SonyBMG, Sharman Networks, Grokster, and pay P2P.

Mennecke also opines that the SonyBMG rootkit fiasco may be the death knell of DRM. While I strongly agree that Sony behaved badly, it's unlikely that DRM will disappear any time soon. Rather, monies will be paid in compensation, Sony will agree not to do it again, and the industry will move on to the next generation of DRM. This time, however, the interests of consumers will be taken into account  before the DRM technology is released to the public.

Well one can hope.

Snippets:

2006: The Year of MP3s and Stealth P2P

The BBC Website article by Jane Wakefield quotes music  industry watchers as predicting that in 2006 at least one major music label will release music in MP3 format (presumably on CDs). The article also contains a prediction that new P2P networks will appear in 2006 whose users cannot be logged or traced. Snippets:

Mom Fights Downloading Suit on Her Own

Jim Fitzgerald's piece for the AP regarding the battle of Patricia Santangelo against the RIAA is worth a read. Check out the Recording Industry vs The People blog site as well. Lots of useful information there. Snippets from the Fitzgerald article:

Harvard Conference On IP Law

Earlier I reported on the Harvard Law School conference on IP Law cosponsor by Wilmer Hale. Now the proceedings including the agenda, presentations, audio, and the Grokster decision are now online and available to all those interested.

The Boycott Sony Blog

Tim Jarrett has established the boycott Sony blog, apparently to provide a forum for comment and discussion. Among the more recent observations is that the provider of the DRM technology that is the root cause of the Rootkit problem, first4internet, has apparently taken down their web site.

As of yesterday afternoon, most of the content was gone as observed by Jarrett and others.

Grokster Bytes The Dust

As everyone has heard, Grokster has ceased operations and paid a hefty settlement fee.  This ZDNET article summarizes the main points.

As noted, Justice Ginzburg's concurring opinion held that P2P software was not on trial.  Rather, the Court found that Grokster's  (and Streamcast's) marketing focused on uses that infringed the copyrights of others. For further legal analysis of the Grokster decision, see my summary of the recent Harvard Law School discussion on Grokster: Who Won?

HLS Conference On IP Law - Grokster

Grokster.. So Who Won?

Moderator: Thomas P. Olson, Partner,  Wilmer Hale

Panel:
William W. Fisher, Prof. of Law, HLS
Doug Lichtman, Prof. of Law, U. of Chicago
William F. Patry, partner, Thalen, Reid & Priest, LLP
Jeremy Williams, Senior Vice President and Deputy General Counsel, Warner Bros. Entertainment, Inc.

(Paraphrasing, not quoting except where powerpoints wer distributed)

Background-Thomas Olson:

Sony BetaMax case (1984):

Accordingly, the sale of copying equipment, like the sale of other articles of commerce, does not constitute contributory infringement if the product is widely used for legitimate unobjectionable purposes. Indeed, it need merely be capable of substantial noninfringing uses."

Grokster won in the District Court and in the Ninth Circuit (3-0).

The Grokster Court (the Supremes) did not like Grokster: 9-0 against.

[The opinion can be download here.]

Did Grokster intend to induce infringement?

The record is replete with evidence that from the moment Grokster and StreamCast began to distribute their free software, each one clearly voiced the objective that recipients use it to download copyrighted works, and each took active steps to encourage infringement.

Grokster's Bad Intent - Key Factor #1

Three features of this evidence of intent are particularly notable. First, each company showed itself to be aiming to satisfy a known source of demand for copyright infringement. the market comprising former Napster users.

Grokster's Bad Intent - Key Factor #2: Technological Mandate to Avoid Infringement? Or, Never Mind

Second, the evidence of unlawful objective is given added significance by MGM's showing that neither company attempted to develop filtering tools or other mechanisms to diminish the infringing activity using their software. While the Ninth Circuit treated the defendant's failure  to develop such tools as irrelevant because they lacked an independent duty  to monitor their user's activity, we think this evidence underscores Grokster's and StreamCast's intentional facilitation of their user's infringement.

Grokster's Bad Intent - Key Factor #3: Tell me again how you make your money?

Third, there is a further complement to the direct evidence of unlawful objective. It is useful to recall that  StreamCast and Grokster make money by selling advertising space, by directing ads to the screens of computers employing their software. As the record shows, the more the software is used, the more ads are sent out and the greater the advertising revenue becomes. Since the extent of the software's use determines the gain to the distributors, the commercial sense of their enterprise turns on high-volume use which the record shows is infringing.

This evidence alone would not justify an inference of unlawful intent, but viewed in the context of the entire record its import is clear.

The unlawful objective is unmistakable.

Harvard Law School Conference On IP Law

Today I'm at The Harvard Law School Conference on IP Law. I'll be blogging the morning sessions which are about to kick off.

The various welcoming speeches are underway.  Elena Kagan, Dean, Harvard Law School.

(Paraphrasing selected comments, not quoting.)

Patent Litigation - A View From The Bench
Moderator: William F. Lee

Panel:
Hon. Arthur J. Gajarsa, former patent examiner, Court of Appeals for the Federal Circuit (CAFC),
Hon. Alan D. Lourie, Court of Appeals for the Federal Circuit (CAFC),
Hon. Pauline Newman, Court of Appeals for the Federal Circuit (CAFC),
Hon. Pattie B. Saris, US District Court, Massachusetts,
Hon. William Young, US District Court, Massachusetts

Some background:

Number of patent litigation cases filed has increased each of the past 4 years.

More than 70% of patent cases survive until a court action is taken, but only 15-18% see the pretrial phase.  Only 4% are actually tried. 70% jury trials / 30% bench trials.

Median cost of litigating a patent case has jumped 33%; is now $2M on average.

Question posed: what change in the patent system would you most like to see?

Australian Court Rules Against Kazaa

Numerous sources including Reuters, the NYTimes,  and CNet have reported that Sharman Networks, the makers of P2P file sharing software have been found guilty in an Australian (home of Sherman) of promoting copyright infringement. Snippets from the CNet article:

Sony to launch P2P music swapping network

The Channel Register (UK) reports on a Sony / BMG deal to bring music to market via P2P.
Snippets: