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Showcasing a National Experience : Development of DRM Standards Development of DRM Standards Showcasing a National Experience : Development of DRM Standards.

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Presentation on theme: "Showcasing a National Experience : Development of DRM Standards Development of DRM Standards Showcasing a National Experience : Development of DRM Standards."— Presentation transcript:

1 Showcasing a National Experience : Development of DRM Standards Development of DRM Standards Showcasing a National Experience : Development of DRM Standards Development of DRM Standards Korea Software Copyright Committee www.socop.or.kr Kim, Won-Hak

2 2 Proposal to Dismantle DRM 1 Contents Contents Scope of DRM 2 Legislation on DRM in Korea 3 Cases on TPMs 4 RMI 5 Application of DRM on Music 6 DRM on Other Types of Works 7 Tasks for DRM Standardization 8

3 3 Proposal to Dismantle DRM (1) Steve Jobs demanded record companies to dismantle DRM (February 6, 2007) The application of Apples DRM system is a prerequisite for music sales - Apple protects music copyrights through DRM called FairPlay by agreeing licenses for the distribution of music from the Big 4 (Universal, Sony BMG, Warner, and EMI) that dominates 70 % of the world music market Less than 3% of iPods use DRM applied music; the remaining 97% of mp3 files are without DRM - It is not possible to put limitations on iPod users through DRM

4 4 Proposal to Dismantle DRM (2) Proposal to Dismantle DRM (2) Of the 4 Big global record companies, only EMI has chosen to provide music without DRM. According to Information Week, which reported data from Jupiter Research: - Research on Entrepreneur of European Record Companies shows that 62% replied that dismantling DRM will promote the distribution of digital music - 54% replied that DRM is an excessive restraint - 56% disagreed with the statement that DRM is necessary for online music and only 11% replied that Dismantling DRM will impact their business negatively

5 5 Proposal to Dismantle DRM (3) Proposal to Dismantle DRM (3) Dismantled DRM and introduced a service to download all music within Bugs Music for a monthly fee of $4 - Bugs Music will temporarily dismantle DRM for the convenience of customers until the interoperability of MP3 files are guaranteed - Although Bugs Music have mentioned that they dismantle DRM for the convenience of customers, but it was due to low sales of DRM applied music Proposal to Dismantle DRM by Bugs Music in Korea Proposal to Dismantle DRM by Bugs Music in Korea

6 6 Scope of DRM (1) DRM technology is a system that restrains the illegal copying or distribution of digital contents by utilizing encryption technology Generally the function of DRM technology can be categorized into protection, management and distribution Definition and Types

7 7 Scope of DRM (2)

8 8 Scope of DRM (3) Scope of DRM (3) WCT Provision definition - The term "technological protection measures" means the measures to effectively protect the program copyrights through an input of identification numbers or authentication numbers, an encryption with respect to programs, and other key technologies or devices, etc. to protect the rights Obligations concerning Technological Measures of WCT Art.11 - Contracting Parties shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors in connection with the exercise of their rights under this Treaty or the Berne Convention and that restrict acts, in respect of their works, which are not authorized by the authors concerned or permitted by law DRM

9 9 Scope of DRM (4) WCT Provision definition - rights management information means information which identifies the work, the author of the work, the owner of any right in the work, or information about the terms and conditions of use of the work, and any numbers or codes that represent such information, when any of these items of information is attached to a copy of a work or appears in connection with the communication of a work to the public Obligations concerning RMI of WCT Art. 12 - Contracting Parties shall provide adequate and effective legal remedies against any person knowingly performing any of the following acts knowing, or with respect to civil remedies having reasonable grounds to know, that it will induce, enable, facilitate or conceal an infringement of any right covered by this Treaty or the Berne Convention ( ) to remove or alter any electronic rights management information without authority ( ) to distribute, import for distribution, broadcast or communicate to the public, without authority, works or copies of works knowing that electronic rights management information has been removed or altered without authority RMI

10 10 Legislation on DRM in Korea (1) Computer Programs Protection Act : Software Copyright Act : Copyrighted works Act for Online Digital Content Industry Development : Digital content Act for Promotion of the Game Industry : Games Legislation on DRM Industrial Development Technical Development Training Professionals Standardization DRM & Industry Promotion

11 11 Legislation on DRM in Korea (2) Under the current Act, the circumvention of TPMs is prohibited Art. 30, Computer Programs Protection Law Art. 124, Copyright Act Art. 18, Act for Online Digital Content Development DRM Protection

12 12 Legislation on DRM in Korea (3) There is no separate provision on TPMs but related policy is under progress Art. 13, Act for Promotion of the Game Industry (Protection of Intellectual Property Rights) The Government can promote the following projects for protecting the intellectual property right of games 1. Technical protection of games 2. Implementation of showing RMI, which identifies games and the developer of game Act for Promotion of the Game Industry

13 13 Current provisions Current ProvisionsJudicial Decision Korean Supreme Courts Decision : Access control measures can be protected if they have an equal effect to copy protection The term "technological protection measures" means the measures to protect the program copyrights through an input of identification numbers or authentication numbers, an encryption with respect to programs, and other key technologies or devices, etc. to protect the rights efficiently Cases on TPMs (1) Recognizes copy control type technological protection measures only

14 14 Cases on TPMs (2) Supreme court case Activity that enables illegal game CDs with no access code to run on the PlayStation2 is included in the activities that circumvent TPMs stipulated in CPPA, Art. 30.2 2004do2743, Feb 24, 2006 ( 2004do2743, Feb 24, 2006 )

15 15 Cases on TPM (3) Cases on TPM (3) 1. Case on Mod Chip in The Sony PlayStation 2 2. Australian Federal Court decided that the PS2 Mod Chip is not designed to circumvent the code inserted by Sony to prevent illegal copying of game CD Judicial decision in Australia

16 16 Cases on TPM (4) Cases on TPM (4) Australia vs. Korea Different results on same legal issue Due to difference of regulation Changes after FTA Australia: Revised related provisions after the AUSFTA Korea: Laws not revised since the conclusion of FTA talks

17 17 RMI (1) RMI (1) RMI means the information falling under any of the following items or the numerals or symbols indicating the said information, and each information is attached to the original, or its reproductions of the works, stage performances, phonograms, broadcasting, or database, or is accompanied with its public performances, broadcasting or transmission Provision Art. 29, CPPA, Art. 124, Copyright Act, Article 17, Act for Online Digital Content Industry Development prohibits removal or alteration of RMI Definition

18 18 RMI (2) RMI (2) Case If the production date and display date are not indicated in the cartoon. it is excluded from the subject matter of protection regulated in Art. 18.1 of the Act for Online Digital Content Industry Development. Therefore, reproducing and transmitting the cartoon does not violate Art. 18.1 (2004do9073, Feb 10, 2006) Act for Online Digital Content Industry Development Art. 18.1 of the Act for Online Digital Content Industry Development regulates Unauthorized persons may not infringe the rights of competitors and cause them to incur losses in terms of business profits by reproducing or transmitting all or part of the online contents created and displayed through the efforts of other persons

19 19 Application of DRM on Music (1) Current Status of Closed DRM Closed DRM has been adopted by 2 of the 3 major Korean music service providers - Music provided by each online music site with their own DRM are not allowed in other devices Promotion of the digital content industry can be impeded by the abuse of market-dominant position of using Closed DRM as a barrier for market access - DRM interoperability can be impeded by complicated technology, strategic use of non-compatible DRM, and a diversity of business model

20 20 Application of DRM on Music (2) iPods Case In France, Apple denied the request to license FairPlay, DRM technolody of iPod - Respect to the abuse of the market-dominant position of Apple, the Fair Trade Commission decided the Apples DRM as a non necessary element According to the Digital Copyrights Law legislated in France in 2006: - Providers of DRM systems should provide the necessary technical documentation to any party needing it to ensure that interoperability. In practice, this would mean that makers of software or hardware players could request information from providers of DRM-protected music or video in order for that music or video to be playable on their system - The publication of the source code or technical documentation of systems implementing DRMs is not prohibiting by the protection granted to DRMs

21 21 Application of DRM on Music (3) Application of DRM in the Korean Music Market Before 2005, the mobile phone service market was the main market for the digital music industry - The online market was then promoted by the emergence of online music services and charged P2P systems - The two companies which led the application of DRM used closed DRM to let music be played on particular devices - Claimed that the DRM standard was premature and that service providers must be paid with incentives to elevate the payment based market Therefore, they used closed DRM as a barrier to market access so as to maintain their temporary leading position in the market and to minimize market competition

22 22 Application of DRM on Music (4) Application of DRM on Music (4) Application of DRM in Korean Music Market (contd) Some online music service providers requested the interoperability of DRM - Due to the closed DRM policies of mobiletelecommunication companies, users cannot play files they legally purchase from online music service providers like Bugs or MaxMP3 on their mobile phones. - They argue that such activity is non-fair trade behavior prohibited by the Unfair Trade Law

23 23 Application of DRM on Music (5) Application of DRM in Korean Music Market (contd) EXIM, a DRM inter-operational technology standard, developed by ETRI The S company first developed an inter-operational solution by utilizing EXIM - DIMF [digital music forum], an association of online music providers, selected Inka Entworks as a developer of DRM inter-operational solutions for follow up The K company began development of related technology to fit the requirements of the plan suggested by the Ministry of Information and Communication Mobile telecommunication companies who did not use their own DRMs had no problem with DRM inter-operational issues.

24 24 Application of DRM on Music (6)

25 25 DRM on Other Types of Works DRM on Other Types of Works Due to the recent rapid growth of the mobile technology market, digital broadcasting market, and DVD market, DRM technology development is progressing focused on the related platforms For a DRM standard, various kinds of standardization organizations such as SDMI, OeBF, DVD Forum, IDRM, DOI, and MPEG-21 arose around year 2000 Among standardization organizations, OMA (Open Mobile Alliance) and MPEG-21 are the most active: - OMA was established in June of 2002 to set up mobile standards. OMA announced Mobile DRM v2 in 2004 and continues the standardization processes - MPEG-21 aims at producing various kinds of comprehensive multimedia framework specifications for various kinds of digital content services and currently it is the most active organization

26 26 Task for DRM Standardization (1) Technical difficulties for various kinds of digital contents - As the varied, individual DRM content are currently serviced, there are difficulties in technology and policy in transforming them into another kind of new DRM content - Vulnerability due to the disclosure of security technology and restrictions in applying various kinds of security mechanisms could follow because of the characteristics of DRM Currently there is no dominant DRM standard and DRM is closely related with business The basic framework of government support for DRM standardization exists by industry The plan for standardizing various digital contents must progress with a long- term view

27 27 Task for DRM Standardization (2) OECD and other technical and institutional advisors of each country admit the role of market and demand the careful act of government - Promote the formation of standard by competitions in the market - Limiting government role of sanction against the abuse of market-dominent service providers that acquired de facto standards - In order to attract investments in initial stage of market, closed DRM should be partially allowed DRM standards must be decided in the market and government should support this standardization process - Applying the Unfair Trade Law to those abusing their market-dominant positions by using closed DRMs - Allowing analysis of competing companies DRM for interoperability and R&D

28 28 Thank You ! galgalaw@socop.or.kr


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