1. and the technology’s effect on consumer rights

2. What is DRM?  Defined by Encyclopedia of Multimedia as “technology [that] offers the ability to control the distribution and use of the intellectual property (including media/content) and thereby protect the associated revenue or investment for the digital content businesses.”  Differs from copyright in its ability to dynamically control content

3. Types of DRM  Region Coding  License Keys  ABCDE-12345  Activation Limits  iTunes Account Auth.  Software

4. The Fundamental Problem of DRM  “Why should a consumer start using software with DRM components that, by their nature, limit the customer’s freedom in interacting with the content? Only when the majority of customers can be convinced that DRM is an appropriate mechanism for enjoying content, will they start to regularly use it.”  Niels Rump

5. Is There an Invasion of Privacy?  Melissa Thomas v. Electronic Arts, 2008  Software SecuROM was hidden from users of the game Spore  SecuROM installed to the Kernel of the computer (command and control center)  This means that a piece of software unknown to the user had access to every piece of information and every piece of hardware attached to the computer  Opens up security hole in Kernel  Identity theft, anyone? (Possible, though unlikely)

6. The EULA  End User License Agreement  We accept some terms of use every time we use a piece of software or digital good. This is the EULA  Checking the box and pressing okay means a lot more than we think  Legally binding contract  We waive most of our rights at the door of entry  And on that note…

7. What rights do we have to begin with?  Vernor v. AutoDesk, 2010  Timothy Vernor sold 14 copies of AutoCAD on eBay.  AutoDesk didn’t like that  The EULA for Release 14 first recites that Autodesk retains title to all copies. Second, it states that the customer has a nonexclusive and nontransferable license to use Release 14. Third, it imposes transfer restrictions, prohibiting customers from renting, leasing, or transferring the software without Autodesk’s prior consent.  Court ruled in favor of AutoDesk

8. The word  If the consumer is not made aware of all the terms of using a digital product, the law is being violated.  When the user is warned about the presence of DRM implementations, anything is fair game.  Consumers are legally required to follow the terms of the EULA.