1. 2008/04/01The Digital Media in Italia (dmin.it) proposal 1 The creation of a competitive and innovative environment for digital content in Europe A proposal by Digital Media in Italia (dmin.it)

2. 2008/04/01The Digital Media in Italia (dmin.it) proposal 2 About Digital Media in Italia dmin.it is an interdisciplinary, open, non-profit group founded in 2005 with the purpose to overcome barriers and obstacles that hinder the development of a leading and competitive digital content environment in Italy; dmin.it has developed a proposal designed to maximise the flow of digital media. This is available at http://www.dmin.it/specifiche/proposta-completa.htm and http://www.dmin.it/specifiche/summary.htm and contains technology, and legislation and governance proposal; http://www.dmin.it/specifiche/proposta-completa.htm http://www.dmin.it/specifiche/summary.htm dmin.it is pleased to submit to the European Commission its proposal for the creation of an interoperable and innovative digital content environment for the European Union.

3. 2008/04/01The Digital Media in Italia (dmin.it) proposal 3 The context In spite of the many expectations of digital technologies for content, these have largely failed to materialise. In particular: –Media companies have embraced the technology half-heartedly giving priority to rights protection; –Consumers have embraced the technology whole- heartedly riding on the existing wealth of “analogue” content As a result, today the size of the “open” market is dwarfed by the size of the “black” market The problem can only be solved by finding a balanced convergence point between conflicting interests

4. 2008/04/01The Digital Media in Italia (dmin.it) proposal 4 The idea Find an equilibrium point between the rights of: –Creators and their proxies to reach consumers typically through distribution chains –Operators to provide services using the technologies that best support their business –Consumers to access services with a minimum level of interoperability Design the equilibrium point: –For the entire European Union territory, without internal barriers and obstacles Should the equilibrium point be achieved: –A unified continental market of 500 million people will be created for the benefit of European consumers and industry; –The European cultural industry will be given lifeblood; –Innovation and competition in the digital media market will be stimulated.

5. 2008/04/01The Digital Media in Italia (dmin.it) proposal 5 Implementing the idea The dmin.it proposal requires actions in three areas: –iDRM: interoperable format for controlled digital media distribution; –iNet: open access to and transport through broadband networks; –iPay: affordable online payment/cash systems. Operators may utilise content, network and payment services of their choice (technological neutrality), but must also provide interoperable services All other users (creators and consumers) may freely choose between proprietary or interoperable service access

6. 2008/04/01The Digital Media in Italia (dmin.it) proposal 6 iDRM: the interoperable format 1.An iDRM specification is adopted at European level 2.Anyone releasing content using a proprietary technology must also:  Release it using the iDRM technology,  At conditions which are not discriminatory compared with the proprietary technology 3.Anyone may:  Realise devices with;  Offer services based on iDRM provided that consumers are duly informed;  Request and obtain conformance certification for them;  Offer them to interested parties 4.The iDRM specifications are: 1.Public; 2.Implemented as Open Source Software (OSS); 3.Not prescriptive of a particular business model. 5.The governance of the iDRM ecosystem is managed by representatives of all stakeholders

7. 2008/04/01The Digital Media in Italia (dmin.it) proposal 7 Content of operator A pDRM iDRM pDRM iDRM Distribution Channels Type 1 Distribution Channels Type 2 pDRM device iDRM device pDRM device iDRM device pDRM: proprietary DRM iDRM: interoperable DRM iDRM – how it works

8. 2008/04/01The Digital Media in Italia (dmin.it) proposal 8 iNet: open network access 1.Broadband Providers may offer (bundled or unbundled) access to their networks with technical characteristics of their choice (technological neutrality) 2.Any user (content provider, intermediary or end user) may request and obtain from a Broadband Provider:  The pure two-way service-agnostic access to the "big internet“;  With technical features already offered by the Broadband Provider;  At non-discriminatory conditions. 3.Broadband Providers must:  Guarantee network service interoperability;  Provide agreed specific QoS levels at peering points so as to provide users end-to-end QoS levels

9. 2008/04/01The Digital Media in Italia (dmin.it) proposal 9 Proprietary Network of Operator A Open Network of Operator A Proprietary Network of Operator B Open Network of Operator B Network of Operator C iNet Access iNet Access Peering Point Peering Point Proprietary Access Open access to broadband networks according to dmin.it Proprietary Access

10. 2008/04/01The Digital Media in Italia (dmin.it) proposal 10 iPay: online payment/cash system Anyone may open a “virtual” account based on guaranteed “real” payment systems, e.g. –Bank accounts –Credit cards –Prepaid card –Utility bill (gas, phone etc.) –etc. Synchronisation between virtual and real circuits –Is performed at regular times or on demand –Transaction costs only apply at synchronisation time

11. 2008/04/01The Digital Media in Italia (dmin.it) proposal 11 The dmin.it market economy Value Chain User 1 (e.g. Retailer) Value Chain User 2 (e.g. End user) Virtual Account Service Provider 1 Virtual Account Service Provider 2 Bank account Credit card Prepaid card Bank account Credit card Utility bill Payment with units Content negotiation with payment data Network resource negotiation with payment data Acct11 Acct12 Acct1n Acct21 Acct22 Acct2m Shared Services

12. 2008/04/01The Digital Media in Italia (dmin.it) proposal 12 Advantages of the dmin.it proposal Creation of a large European digital content market, with benefit for consumers and broadband networks Lower barrier for content creators to access value chains by: –Providing more value to user-generated content –Benefitting a more pluralistic market Possibility of new intermediation forms by combining iDRM, iNet and/or iPay functions Unlimited possibility for consumers to access content from –Their network operators (bundled); and/or –Outside their operator’s offer (unbundled) Discouragement of piracy because properly priced legal and interoperable content is plentiful

13. 2008/04/01The Digital Media in Italia (dmin.it) proposal 13 Where we are First meeting held in Nov. 2005 Framework proposal published in Sep. 2006 Call for proposals of technologies published in Mar. 2007 iDRM and iPay technologies selected in Jun. 2007 Complete proposal published in Dec. 2007 containing, for each of iDRM, iNet and iPay –Technologies –Proposals for legislative intervention –Governance dmin.it participants are currently developing the dmin.it reference implementation released as Open Source Software, including demo applications –P2p iDRM –VHS 2.0

14. 2008/04/01The Digital Media in Italia (dmin.it) proposal 14 Flag these web sites dmin.it web site –http://www.dmin.it/http://www.dmin.it/ Complete proposal –http://www.dmin.it/specifiche/proposta- completa.htm (in Italian)http://www.dmin.it/specifiche/proposta- completa.htm –http://www.dmin.it/specifiche/summary.htm (excerpts in English)http://www.dmin.it/specifiche/summary.htm