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Realities of Managing Digital Rights e. Libraries 2003 New York, May 6, 2003 Gail Realities of Managing Digital Rights e. Libraries 2003 New York, May 6, 2003 Gail Dykstra Research

Today • Reality is being squeezed • And the response is …. • Libraries Today • Reality is being squeezed • And the response is …. • Libraries need 4 facets for strategy

Squeezed On All Sides Squeezed On All Sides

Caught in the Middle • Consumer’s rights • Creator’s rights • User behavior • Caught in the Middle • Consumer’s rights • Creator’s rights • User behavior • Pay to play • User’s expectations • Content business for content • Library has exceptions models • Library sets practices & example

Caught in the Middle Again… • Access issues • Institutional response • User behavior Caught in the Middle Again… • Access issues • Institutional response • User behavior • No Administrative Policies • Laws, licenses & liability • Implementation • Indirect control (if at all) • No realistic administrative policies

Out Of The Middle Libraries have been here before • Content • Collection • Out Of The Middle Libraries have been here before • Content • Collection • Creation • Setting metadata standards

Columbia University • You are responsible for what you do on the • • Columbia University • You are responsible for what you do on the • • network. You must respect copyright. The University must take appropriate action. File-sharing programs automatically distribute files. File sharing help… for removing or disabling …. . http: //www. columbia. edu/cu/policy/copyright-info. html

Libraries Actively …. . • Educate users • Only accept non-infringing behavior • Identify Libraries Actively …. . • Educate users • Only accept non-infringing behavior • Identify content preferences • Define best practices • Engage technology standards

Strategy Technology Public & Institutional Policy Standards Business & Behavior Strategy Technology Public & Institutional Policy Standards Business & Behavior

Technology • Digital Rights Management (DRM) Definition Functionalities Technology • Digital Rights Management (DRM) Definition Functionalities

Enforcement & Roles • Security policies & procedures • Enforce password access • Identity-based Enforcement & Roles • Security policies & procedures • Enforce password access • Identity-based roles • Personas

Rights Protection Software Digital Rights Management (DRM) 4 As • Authentication • Authority • Rights Protection Software Digital Rights Management (DRM) 4 As • Authentication • Authority • Access • Accountability DRM permits smooth, secure, trusted and persistent movement of digital works from creators and publishers to retailers and consumers

DRM Technologies & Services 1. Software 2. Encryption, wrapping, watermarking 3. Hardware 4. 5. DRM Technologies & Services 1. Software 2. Encryption, wrapping, watermarking 3. Hardware 4. 5. e. Books, consumer games, mobile devices PCs & servers 6. Services 1. Copyright & licensing collectives. 2. Point of permission services 7. IP Asset Management Systems 1. e. Licensing & digital asset management

Encryption Technology Encryption Anywhere Create Digital Content SEND - Content - Metadata SET - Encryption Technology Encryption Anywhere Create Digital Content SEND - Content - Metadata SET - Access - Use Firewall

DRM Technology Encryption Create Digital Content SEND - Content - Metadata SET - Access DRM Technology Encryption Create Digital Content SEND - Content - Metadata SET - Access - Use Anywhere Digital Content SET Firewall Access - Use - Track & Report

DRM Concepts • Identity - Person - Device - Both • Authenticate - Content DRM Concepts • Identity - Person - Device - Both • Authenticate - Content - User name (alias, position, security) - Persona (person, position, use of content)

DRM Technology Concepts • Content & license info included • Software allows identity Person, DRM Technology Concepts • Content & license info included • Software allows identity Person, device, or both • Authenticate Content User name (alias, position, security) Persona (person, position, use of content

DRM Reference Architecture Content Server Content Repository DRM Packager Product Info Client Encryption Content DRM Reference Architecture Content Server Content Repository DRM Packager Product Info Client Encryption Content Metadata Financial Transaction Rights Encryption Keys DRM Controller License Generator Encryption Rendering Application Keys Rights Identities License Server With Permission of Bill Rosenblatt, Giant Steps Media Technology Strategies Identity

Functionalities • Access Controls • • • Usage Controls • • Tracking • • Functionalities • Access Controls • • • Usage Controls • • Tracking • • • Encryption Subscription Registration/Password Click-through Read-only Read & Print Full Watermarking/Digital footprints Online/Clearinghouse Voluntary user compliance

DRM Words & Concepts Used Syndicators Aggregators “More is best” Solution-based; web delivered CONTENT- DRM Words & Concepts Used Syndicators Aggregators “More is best” Solution-based; web delivered CONTENT- competitive “Redistribute, Research, Re-use” Revenue; Proprietary products & software PRODUCT-Competitive E-Marketplaces Revenue-based fees Offer Source, type/topic & filtering for one-shot use or streaming Software “Lock it up” Encrypt; Punitive Encryption Watermarking Wrapping technologies Licensed software fees or percentages of revenue Subscription or Pay per use models Familiar database models based on republished rights Traditional CA & research suppliers User-based fees License embedded in content-biblio, FT & A&I systems Services “Make it easy to do the right thing” Requires WEB Browser Copyright Collectives License rights; Don’t usually deliver the content Set fees; Percentage of content licensed Honor system

Rights Models • User authentication • Content integrity • Types of rights • Types Rights Models • User authentication • Content integrity • Types of rights • Types of users • Extent of rights • Costs • Tracking • Payment • Granularity Business Product Market Channel Features Functionalities Purchase Options Updates

“So What” Factors DRM technologies change how you: • Purchase content • Research • “So What” Factors DRM technologies change how you: • Purchase content • Research • Collaborate with others • Everyday decisions on protecting content • Lead investment and use of DRM for corporate compliance

Business & Behavior • Piracy & unauthorized copying • Enterprise Content Management (ECM) • Business & Behavior • Piracy & unauthorized copying • Enterprise Content Management (ECM) • Libraries as institutions or businesses • Coming soon ?

Attitudes & Behavior Do it Questions Free 1990 1992 1997 Disrupt 2003 Names WWW Attitudes & Behavior Do it Questions Free 1990 1992 1997 Disrupt 2003 Names WWW Texaco corporate impact P 2 P decision(s) Verizon Explain 2006

Quotes • … The biggest whines were about the fact that the e- book Quotes • … The biggest whines were about the fact that the e- book couldn’t be duplicated once it was downloaded. It’s an emotional issue. People hate copy protection, partly for good reasons (it’s hard to make legal personal copies) and partly for bad reasons (it’s hard to steal). I received many email messages informing me that I was greedy, shortsighted and foolish… Scott Adams (Dilbert) As cited in the recent Association of American Publishers & American Library Association study on e-books and DRM (see list of resources)

Quotes “Piracy has been systematically encouraged by a generous supply of Internet services, products Quotes “Piracy has been systematically encouraged by a generous supply of Internet services, products and tools…. There is no free lunch… In the end when someone gets ripped off… someone else is getting screwed. ” Peter Chernin, CEO Fox Group & President & COO of News Corporation at Comdex 2003 “Is DRM the answer to a question we’re not asking? How do we burn this library down for good? ” Cory Doctrow, Electronic Frontier Foundation at ETECH Conf 2003 “There was lots of talk about value propositions… nobody has come up with a value proposition that customers want/ But they never said the people setting the policy don’t trust or respect the customer. And there are moves afoot to mandate and require DRM so the current customer-unpopular value propositions are shoved down our throat. Did anybody mention this? Nope. Nathan Torkington, in talking about an software developers’ industry panel

Quotes … Forgive me for being simple-minded, but I believe that the Number One Quotes … Forgive me for being simple-minded, but I believe that the Number One Preference is not to have DRM at all. There is no 'need to protect the security. . . there are only self-serving, short-sighted, greedy and customer-hostile desires to do so. Semi-anonymous liblicense Listserv … I fear that Digital Rights Management today is Political Rights Management tomorrow… embedding these kinds of technological controls into the very architecture of computing has the capacity to become a form of political control in the not so distant future. John Perry Barlow, “Wrapped in Crypto Bottles”

Numbers • 2, 804, 674 Kazaa downloads per week • 60 M Americans downloaded Numbers • 2, 804, 674 Kazaa downloads per week • 60 M Americans downloaded MP 3 files • 500 M Worldwide downloads • 220 million Kazaa downloads (5/3/03) • # 1 Downloaded song: In da club- 50 Cent (4/28/03) • 15% Decline in CD shipments since 2001 • 56% Increase in sales of MP 3 Players since 2001 • 1. 7 billion sales of blank CDs 2002 • 40% leaked info from inside company (estimated at costing business $6 B per year) • 80% software game piracy originates inside company

Current News Vindictive DRM? • Music Companies explore software: - Trojan horse (redirects to Current News Vindictive DRM? • Music Companies explore software: - Trojan horse (redirects to official site) - Freeze (program locks computer OS) - Trackbacks (identify users & sends email) - Spoofing (sends false music files) - Denial of service attacks - Silence (Erases legitimate files) - Interdiction (Prevents use of network while downloading “unauthorized files)

Apprehensions “…technologies that could be very effective in combating piracy on peer-to-peer networks but Apprehensions “…technologies that could be very effective in combating piracy on peer-to-peer networks but are not widely used because some customers … feel uncomfortable with current ambiguities in computer hacking laws” Randy Saaf, President of Media. Defender

Piracy & Unauthorized Copying Recording Industry Association of America • Sends letters to 2500 Piracy & Unauthorized Copying Recording Industry Association of America • Sends letters to 2500 university presidents • Sends Fortune 1000 corporate guide to licensed use, policy & practices • Sends Instant Messages (IM) to millions of “Chat” users from download software sites. Messages warn people that an illegal software download and points them to legal download sites.

Work Functions - Clusters • Access / Search • Creation / Collaboration • Production Work Functions - Clusters • Access / Search • Creation / Collaboration • Production / Distribution • Secure • Track / Report

Content Management Enterprise Content Management (ECM) The technologies and tools used to create, capture, Content Management Enterprise Content Management (ECM) The technologies and tools used to create, capture, customize, deliver and manage content across the Enterprise Association of Imaging and Information Management (AIIM)

What if? The way we think about Enterprise Content Management (ECM)m will change… The What if? The way we think about Enterprise Content Management (ECM)m will change… The technologies and tools used to create, capture, customize, deliver, manage and persistently protect content across the Enterprise

Collaboration – DRM Potential • Inter & Intra organizations Collaboration – DRM Potential • Inter & Intra organizations

Microsoft Alters Behavior • NEW … Windows Information Rights Management- Late 2003 Office 2003 Microsoft Alters Behavior • NEW … Windows Information Rights Management- Late 2003 Office 2003 – DRM built into Outlook, Excel, WORD, PPT Xr. ML-based standards • Coming. . . Palladium (2004/5) Embedded in OS (operating system) “Trusted Computing” To succeed, Microsoft needs OED-opt-in & buy-in • Continuing … Windows Media Player & Windows Media Rights Manager Music e. Books Streaming Media/Video

DRM — Markets + Indicators ADOPTION DEPLOYMENT EARLY MARKET CHASM ASSIMILATION DRM — Markets + Indicators ADOPTION DEPLOYMENT EARLY MARKET CHASM ASSIMILATION

DRM — Markets + Indicators 1994 - 2001 Market Business Models Standards Users Relationships DRM — Markets + Indicators 1994 - 2001 Market Business Models Standards Users Relationships EARLY MARKET

DRM — Markets + Indicators 2001 -2002 Market Business Models Standards Users Relationships CHASM DRM — Markets + Indicators 2001 -2002 Market Business Models Standards Users Relationships CHASM

DRM — Markets + Indicators 2002 -2003 Market Business Models Standards Users Relationships DEPLOYMENT DRM — Markets + Indicators 2002 -2003 Market Business Models Standards Users Relationships DEPLOYMENT

DRM — Markets + Indicators IT world changes too fast to predict ASSIMILATION DRM — Markets + Indicators IT world changes too fast to predict ASSIMILATION

DRM — Markets + Indicators 2005 Market Business Models Standards Users Relationships ADOPTION DRM — Markets + Indicators 2005 Market Business Models Standards Users Relationships ADOPTION

Different Uses Publishing Enterprise • Corporate product • E-mail • PDF, online and e-book Different Uses Publishing Enterprise • Corporate product • E-mail • PDF, online and e-book • Documents (PDF, MS and data formats • Wide variety of devices • Typically, a one way channel Office, Specialized) • Technical drawings • Web portals, internal and extranet • Collaborative & business value chains

Cultural Institutions • Heritage Uses Museums, Archives & Libraries Examples: - Library of Congress Cultural Institutions • Heritage Uses Museums, Archives & Libraries Examples: - Library of Congress - OCLC - “Digital Libraries in the Classroom” $9. 5 m grant from the Joint Information System Committee & the US National Science Foundation

Standards • Metadata • Applications • Policies Standards • Metadata • Applications • Policies

DRM Standards DOI Digital Object Identifier ODRL Open Digital Rights Language • ID for DRM Standards DOI Digital Object Identifier ODRL Open Digital Rights Language • ID for online content • Links source to rights clearance systems • e. Book • Created in 2000 • Mobile devices Xr. ML Extensible Rights Markup Language • Xerox. Parc created 1995 • Content. Guard licenses and promotes • Microsoft, SONY • Evolving standard RDD • B 2 B content rights • Ambitious, cross-media

Applications • Content management • Content use (COUNTER Code of Practice) • Categorization software Applications • Content management • Content use (COUNTER Code of Practice) • Categorization software

Numbers • 97% Library standards and Practices: Creating/organizing a digital library Digital rights management Numbers • 97% Library standards and Practices: Creating/organizing a digital library Digital rights management and copyright Metadata Collection development and management • 46% Librarians want training in digital rights OCLC Library Training and Education Market Needs Assessment Study Outsell, Inc. for OCLC Institute

Libraries Need • Assurance of integrity of product and content • Solutions for tracking Libraries Need • Assurance of integrity of product and content • Solutions for tracking & paying - Make it easy to do the right thing - One-stop solution for licensing, accounting and payin across multiple databases - Seamless transitions for users to license (charge-bac options) - Licensing options to serve different-users, functions, technologies, platforms, products • Library-oriented DRM analysis - Potential, companies, products, markets, costs & technology

Libraries Need User experience: Make content easy to use Keep users within your site Libraries Need User experience: Make content easy to use Keep users within your site Icon on your site Seamless … Licensed No payment (Corporate – Need personal or purchasing codes) All formats: Digital, re-license, copy, distribute Technology Standards All platforms & scalable Embedded /wrapped code Balance pain // gain Security levels One install vs. multiple expenses & serial installations

Libraries Need • Compliance (Federal and State) • Accountability • Educational role (e. Learning, Libraries Need • Compliance (Federal and State) • Accountability • Educational role (e. Learning, distance education) • Instructional requirements for audio, video, graphics • Mix of original and licensed content • Student-derived works

Public & Institutional Policy Public & Institutional Policy

Open Access • Copyright Commons • Research Commons • Digital Heritage Open Access • Copyright Commons • Research Commons • Digital Heritage

Institutional Policies • Copyright – University of Washington • Library as University Publisher-Reuters • Institutional Policies • Copyright – University of Washington • Library as University Publisher-Reuters • Technology Transfer – IP Offices

Digital Rights Policies Include: • Mission • Institutional policies for academic speech, student behavior, Digital Rights Policies Include: • Mission • Institutional policies for academic speech, student behavior, honor codes • User profile, expectations & behavior • Content - Do you own the content? Licenses? • Educational and research prerogatives and priorities • Technology neutral or specific (as fits) • People

Balancing Control & Access • DRM is affects access, copyright and privacy • Balancing Balancing Control & Access • DRM is affects access, copyright and privacy • Balancing creator’s rights, content vendor copyright, and user needs • Regulation vs. Market-Control Models • Nobody wants a “Sony Bono” government imposed DRM solution

Public Policy • Digital rights are a public policy issue • Public’s attitude towards Public Policy • Digital rights are a public policy issue • Public’s attitude towards DRM - What do they know? - What do they want? • Legislative, regulatory & copyright issues around DRM - Encryption - Mechanical - Privacy - “Reasonable access by reasonable people”

Policy Issues - Privacy • Institutional -What to do about identifying users? - Who Policy Issues - Privacy • Institutional -What to do about identifying users? - Who has access? Internal & External - Research can see competitive threat: Connecting - identity & use & research strategy -Device interoperability requires common network identity • Personal - Reasonable people want reasonable access - Are privacy & reasonable personal use compatible? - Does privacy compete with “fair use? ” - New groups on the scene representing “consumers”

Resources Digital Rights Management- Business and Technology (William Rosenblatt et. al. New York: John Resources Digital Rights Management- Business and Technology (William Rosenblatt et. al. New York: John Wiley, 2001 ISBN 0 -7645 -4889 -1) DRM Watch http: //www. giantstepsmts. com/DRM%20 Watch/tech. htm What Consumers Want in Digital Rights Management (DRM). (Hill Slowinski. American Association of Publishers and American Library Association, 2003) http: //www. publishers. org/press/pdf/DRMWhite. Paper. pdf Or http: //doi. contentdirections. com/mr/aap. jsp? doi=10. 1003/whitepaper 1 Access Granted: DRM for Brave New World. (Gail Dykstra. Information Highways, April 2003) http: //www. econtentinstitute. org/infohighway/0303/toc. asp

Resources It’s All Free (Lev Grossman. Time, May 5, 2003, pp. 60 -69) Software Resources It’s All Free (Lev Grossman. Time, May 5, 2003, pp. 60 -69) Software Bullet Is Sought To Kill Musical Piracy (Andrew Ross Sorkin. New York Times, May 4, 2003, pp. 1, 36)

Dykstra Research gail. dykstra@dykstraresearch. com 10550 NE 29 th Street, Suite E Bellevue, WA Dykstra Research gail. [email protected] com 10550 NE 29 th Street, Suite E Bellevue, WA 98004 Bus/cell: 425. 241. 4632 Content Licensing & Digital Rights Management