1. Copyright Frost & Sullivan Mobile Digital Rights Management: Managing Rights, Managing Revenues Interactive Analyst Briefing Allison Webb 12 March 2003

2. Copyright Frost & Sullivan Agenda Digital Rights Management Overview: The Copy Protection Environment Mobile Digital Rights Management: Monetising Content Services Conclusions and Recommendations Question and Answer

3. Copyright Frost & Sullivan DRM - The Copy Protection Environment Copyright established to protect offline intellectual property Free distribution controlled by limitations of traditional distribution channels and concept of fair use Copyright Rights Enforcement of Rights Management of Rights

4. Copyright Frost & Sullivan The Copy Protection Environment Traditional copyright being blown apart by disruptive technologies - fixed and wireless networks Information Fixed and wireless networks enable content to be distributed and shared almost instantaneously Little / no loss of quality at little / no cost Potential losses to content revenues and copyright infringement created immediacy in need for DRM solutions

5. Copyright Frost & Sullivan DRM Defined Digital Rights Set of rules governing how content can be consumed Convergence of networks and devices requires content protection at the source Digital Rights Management Technology solution that controls usage & secure content distribution Enables content to be shared between end users, with incremental revenue generation

6. Copyright Frost & Sullivan Mobile DRM Mobile DRM enables content to be passed virally to and between users in a protected format Mobile DRM is one part of the wider copy protection and DRM issue Mobile DRM solutions need to be in place for content owners to make premium content available MONETISES CONTENT

7. Copyright Frost & Sullivan Mobile DRM Mobile DRM is at the core of large content owners being forced to revolutionise their business models to meet changing consumer demands and expectations New revenue opportunities and distribution channels are there to be exploited Key challenge of mobile DRM is balancing the interests of subscribers & end-users with content owners need to protect the value of their property Fair Use Freedom of access to information in the public domain Absolute Protection Full DRM and content protection at the source

8. Copyright Frost & Sullivan Mobile DRM Methods Open Mobile Alliance is the central body working across the mobile value chain to release open DRM standards 3 DRM Methods Forward-Lock Superdistribution Combined Delivery

9. Copyright Frost & Sullivan 1. Forward - Lock Handset solution widely deployed today Effective DRM solution for mobile terminated messages

10. Copyright Frost & Sullivan 2. Combined Delivery Increased flexibility for the end-user Content is rendered according to the rights object delivered with the content

11. Copyright Frost & Sullivan 3. Superdistribution Consumer as content distributor - unleashes the power of viral distribution Benefits the entire value chain by delivering revenues

12. Copyright Frost & Sullivan Conclusions and Recommendations Mobile DRM solutions are a key driver and enabler of the wireless content market & demand for services. Key players across the value chain play a central role in implementing mobile DRM solutions & are centrally positioned to monetise content. Release of open, industry-wide standards for mobile DRM methods is widely supported across industry players.

13. Copyright Frost & Sullivan Conclusions and Recommendations Superdistribution is the ultimate goal for mobile DRM because it will drive unprecedented viral distribution and m- commerce. Mobile DRM solutions need to be transparent to the end- user, balancing content security with a seamless experience.

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