February 9, 2010

UK Digital Economy Bill Progresses with Haste

The UK government’s Digital Economy Bill is proceeding at some pace through the legislative process – somewhat contrary to my previous comments and general expectations.  The main driver is the upcoming obligatory general election, with May 6th openly blurted by ministers as the probable day, although no official date has been set.

The Bill (which unusually started in the upper House of Lords) has moved through its committee stage after two readings, whilst it also has to negotiate the lower House of Commons. It has many other stages to negotiate: two in the upper house and 5 in the lower house, with significant line by line, word by word scrutiny and votes on amendments – all very time-consuming.

Progressive response was keenly debated, with more questions raised than answers provided.  Of concern were issues such as: is it the right mechanism to deal with copyright infringement; how do we implement it practically, fairly and firmly; unintended consequences; and possible adverse reactions and responses by citizens and companies.

At this stage no firm decisions have been made, but clearly the government is intent on getting this bill into legislation.  It is using a range of devices to accelerate it through the processes, apparently brushing aside some of the concerns regarding progressive response, but the detail will come back to slow the process down.

These developments are taking place against the backdrop of more than 80 other bills competing for legislative time, and new initiatives being announced on the fly and inserted into existing bills – all demanding the institutions’ time.  Furthermore, more members of Parliament are announcing that they are standing down at the next election, switching off, and increasingly not turning up to vote, making the passage of the bill less certain.

Whilst I had previously indicated that it was unlikely to come into law, and the balance of probabilities continue to indicate that, one can’t deny the governments’ intent to complete the process in time.

The key areas being legislated on include:

  • Extending the role of the UK telecoms regulator OFCOM to include reporting on communications infrastructure and media content
  • Imposing obligations on internet service providers to reduce online copyright infringement, and allowing the Secretary of State to amend copyright legislation to the same end
  • Allowing the Secretary of State to intervene in Internet domain name registration
  • Requiring Channel Four TV to provide public service content on a range of media
  • Providing more flexibility over the licensing of Channel 3 and Channel 5 TV services, and allowing OFCOM to appoint providers of regional and local news
  • Modifying the device licensing regime to facilitate switchover to digital radio
  • Allowing variation of the public service provision in Channel 3 and 5 TV licences
  • Providing OFCOM with additional powers over electromagnetic spectrum access
  • Extending the range of video games that are subject to age-related classification
  • Providing for the regulation of copyright licensing
  • Including non-print formats in the public lending right payment scheme

All in all, this is a weighty and pervasive bill.

Progressive response might fall into the “too difficult” legislative tray whilst the government concentrates on the more substantive items in this wide ranging bill to get it through in time.

Bill Jones is CEO of Global Village Ltd.

February 7, 2010

Microsoft Re-enters E-Book Market (sort of)

I saw a cavalcade of new e-book devices and platforms demonstrated during a session called “Hardware and Platforms and Software, Oh My!” at last week’s AAP Professional and Scholarly Publishing conference in Washington, DC.  (By the way, can someone please tell me where the “Oh My!” cliché originated?)  Among these was the Blio eReader software platform, which was demonstrated by an executive from the major book distributor Baker and Taylor.  It’s a product of K-NFB Technologies, a joint venture of Kurzweil Technologies and the National Federation of the  Blind.

The Blio eReader is a software platform that intends to be interoperable across multiple devices and operating systems including Windows, Mac, Linux, Android, Symbian, Windows Mobile, and iPhone.  Currently only Windows is supported.  Baker & Taylor is supplying the e-books to the Blio’s online store.  Despite the name and the affiliation, this software does not appear to have any application for visually impaired people.

The DRM for the Blio platform is Microsoft’s PlayReady.  Microsoft CEO Steve Ballmer demoed the Blio briefly during his CES keynote last month.  In other words, this is the closest thing there is to a new Microsoft e-book platform.  Microsoft abandoned its previous Microsoft Reader platform several years ago, a fact noted by the product’s former chief Dick Brass in a New York Times op-ed piece from last week that laments Microsoft’s lack of innovation.

Apart from the fact that the Blio accepts the open standard ePub format (as well as PDF and XPS, Microsoft’s XML-based PDF competitor), this is yet another proprietary e-book platform.  It’s not even the only purportedly device-agnostic one either: Zinio presented something similar at the Mark Logic Publishing Summit in New York last November.  In fact, the feature set of the Blio Reader resembles so-called digital edition platforms like Zinio more than it does e-readers like the Kindle, Nook, or Sony Reader.

I’m sorry; I don’t get it.  What is the point here?  Does Baker & Taylor want to get into digital publishing niches that its arch-rival Ingram doesn’t already dominate?  Does K-NFB want to reach a wider market than the roughly 15 million visually impaired people in the United States (perhaps in order to subsidize NFB’s important work for the visually impaired)?  Does Microsoft want to dip a toe into the e-book water without the expense and exposure of a Zune-like foray?  Or is someone’s market timing just off?

Or, does the world need yet another incompatible e-book reading platform?  The answer to that one is definitely no.

This e-book platform proliferation situation is analogous to the overcaffeinated digital music platform scene of the early 2000s before the market consolidated around Apple’s iTunes/FairPlay and Microsoft’s Windows Media Player/DRM.

Note to e-reader platform vendors: look up RealNetworks’ Helix, Liquid Audio, and Sony’s ATRAC/Open Magic Gate, just to name three.

Note to publishers: if you want to hold onto DRM and grow e-book sales, you need to put a stop to this mess and insist on interoperability.  Otherwise you will fail to do one, the other, or both.

P.S. another new device demonstrated at the AAP PSP conference was the spiffy Skiff Reader, backed by the consumer publishing giant Hearst and LG Electronics.  No word on its DRM; stay tuned.

February 4, 2010

Mobile World Congress: A Preview

What can we expect from next week’s Mobile World Congress show in Barcelona this year in the copyright and technology arena?

I think it will be a physically quieter show for a variety of reasons.  It should also be a slightly lower key show in terms of product announcements etc., due to:

  • The continued emphasis in the industry is on cost cutting and infrastructure sharing to deliver returns; so we can expect announcements on deals, technology and products in that domain.
  • Investment houses are also encouraging operators to look at demergers to release value as “sum of the parts valuations” are greater than the whole. The effect of this is to consume management attention on these issues whilst having less focus on new products and services.
  • Both of these will lead to fewer attendees (cost cutting) and fewer/smaller exhibits offset by more conference time for discussions and debates.
  • Many corporates (large and SME’s) have told me that they either shan’t be attending or that their presence is scaled back.
  • Technology vendors continue to retrench in the face of quieter markets with the attendant culling of less certain projects.
  • The industry has majored on LTE (Long Term Evolution, also known as 4G) as a successor to GSM variants and derivatives, and relegated WiMax and WiFi to niche markets. DRM proposals for the GSM-ish world will quietly be abandoned as new architectures will be required for LTE.
  • The current emphasis on app stores will see increasing attention paid to copyright and technology issues. I expect a flurry of announcements here.
  • Mobile TV will also command more attention.
  • Gaming will also be more visible now that Intel has announced its dual core processors, which enable greater localized processing and content integration in the handset.
  • NFC (Near Field Communication) and e-ticketing will also be showing progress, although innovative ideas are hampered by a somewhat reluctant partner ecosystem within which they have to work.
  • User experience will command greater attention as the industry fights to reduce churn.  Anything that smacks of making life difficult for users will be less successful in gaining traction
  • Monetization will also feature more as increasingly viable solutions proliferate into the market.
  • Social networking as a revenue driver will be featured, as will M2M and location based services.
  • I suspect there will be fewer new mass market consumer product announcements as vendors take other opportunities to differentiate their offerings from the crowded market against a backdrop of reduced market shares, offset by increased niche market products where differentiation can yield better margins.
  • And finally, I expect the increased patent litigations between players to occupy conversation time

I shan’t be attending this year – but of course the probability is that I could be wrong on many if not all of the above!

Bill Jones is CEO of Global Village Ltd.

February 3, 2010

Jaron Lanier Is Not a Gadget

Back in June of last year, I wrote: “When will we get to read a well-organized, well-researched work about the erosion of value of content that is written by someone with credibility who is not a recondite copyright scholar, a media industry shill, or an Internet Luddite?   I’m still waiting.”

Well, the wait is over.

Jaron Lanier’s You Are Not a Gadget: A Manifesto is just that book, and it’s terrific.  Everyone reading this should buy it, right now.

Before I talk about the book itself, let’s get one thing out of the way: some call Lanier a “Luddite” because he “doesn’t get it.”  Now, this is a guy who invented Virtual Reality back in the 1980s, has technology research positions at UC Berkeley and Microsoft, has an IEEE Career Achievement Award (given just last year), and is currently at the cutting edge of research on the interface between computer science and medicine.  Oh, and he shared an apartment with Richard Stallman just as Stallman was mapping out the movement now known as open source.

Jaron Lanier is many things (I left out musician, among others), but he’s not a Luddite.   In fact, he has thought more deeply about issues of content, creativity, and humanism in the Internet age than just about any other writer on the subject.  And his ideas are right on target.

In this book, Lanier asserts that the Internet is moving creativity and content to a “hive mind” or “noosphere” that eschews individual authorship and, far from encouraging a new age of creativity, flattens creative endeavors – from the perspectives of both economics and the creativity itself.  He says that the growth of Internet and Web 2.0 technologies will result in riches for “lords of the cloud” like Google but no one else – apart from a lucky few who are exceptions that prove the rule rather than harbingers of New Rules.

The first part of You Are Not a Gadget is admittedly a little rough going at times for those who, like me, have no background in philosophy.  But it’s necessary for Lanier to set up an intellectual basis for the arguments he makes subsequently, so that they have credibility and do not come off merely as opinionated rantings (such as previous books on this subject like Mark Helprin’s Digital Barbarism and Clifford Stoll’s Silicon Snake Oil).

The next section of the book looks at the content industry – particularly music – from the perspective of someone who is a technologist as well as a performing and recording musician.  As I read this, I did something that I haven’t done in years: I found a yellow highlighter and started highlighting quotable sentences and paragraphs.  Soon I stopped, because there were just too many.

Here are just a couple:

Ironically, advertising is now singled out as the only form of expression meriting genuine commercial protection in the new world to come. Any other form of expression is to be remashed, anonymized, and decontextualized to the point of meaninglessness.  Ads, however, are to be made ever more contextual, and the content of the ad is absolutely sacrosanct.

My riff on a similar theme from 2007 is buried within here.  And another:

The people who are perhaps the most screwed by open culture are the middle classes of intellectual and cultural creation.  The freelance studio session musician … the stringer selling reports to newspapers from a war zone.  Each pays painful dues and devotes years to honing a craft… They get nothing from the new system.

He then goes on to debunk some of the supposedly promising ideas for Music 2.0 business models.  These include:

  • Kevin Kelly’s “True Fans” model: he’d love to see this happen but the evidence thus far is distinctly underwhelming.
  • The Radiohead free-download experiment: a “giant musical act from the old days of the record business, grabbing a few headlines by posting music for free downloading”, a model that does not apply to new, unknown artists — as I also said two years ago when the experiment took place.
  • The specialized curator/aggregator: “…only a trickle of money is made.  The aggregated musicians make essentially nothing.”

Notice that he’s not talking about record labels, major or otherwise; he’s talking about actual content creators.  People who take the opposite of Lanier’s position all too often make the mistake of conflating the two.

Lanier explains that he would love to see new business models arise that will enable musicians and other content creators to make livings, but he’s not seeing evidence of that happening. Furthermore, he readily blames himself for having been part of the problem in the first place, as he did in the 2007 New York Times op-ed piece that first earned him notoriety among the free culture crowd.

But Lanier doesn’t just lament the state of culture online; he also provides cogent explanations for how it got to be this way.  He shows how certain aspects of Internet and Web 2.0 technologies encourage a lack of creativity (so-called mashup culture, he says, is mostly a canard), civility (“troll” behavior), industry, and other desirable human qualities.

To illustrate how the technology actually causes this to happen, he refers to the example of MIDI (Musical Instrument Digital Interface), the digital music protocol that was designed back in the 1980s to capture sounds from digital keyboards.   MIDI’s musically expressive capabilities are very limited, especially when applied to non-keyboard instruments, but the technology’s pervasiveness has had a deleterious effect on the music that people use it to produce.

He also discusses the design of the Unix operating system and its repressive effect on software design since its origins in the early 1970s, and an alternative to Wikipedia called ThinkQuest that produced more authoritative content but died on the vine of scalability.

At the end of the book, Lanier goes back further, to the ways in which humans learn to interact with the world around them through childhood – a subject in developmental biology called neoteny.  He compares human neoteny to that of other species with relatively advanced intelligences and capabilities, such as cephalopods (squid, octopus).  This brings him back to virtual reality, a subject for which he apparently still has a soft spot after all these years.

And what of Lanier’s position on digital rights technologies?  He shows some understanding of how they work.  He calls DRM “troubled” and “cumbersome.”  But at the same time, he says:

…it is often claimed by open culture types that if you can’t make a perfect copy-protection technology, then copy prohibitions are pointless.  And from a technological point of view, it is true that you can’t make a perfect copy-protection scheme.  If flawless behavior restraints are the only potential influences on behavior in a case such as this, we might as well not ask anyone to ever pay for music or journalism again…  Locks are only amulets of inconvenience that remind us of a social contract we ultimately benefit from.

This is the best description I have seen of the relationship that DRM is intended to promote between the “Architecture” (technology) and “Norms” (behavior) factors of life in the digital age that Lawrence Lessig laid out in his landmark book Code and Other Laws of Cyberspace.  To me this explanation is preferable to the “keep honest people honest” line used by people like the MPAA’s Fritz Attaway.  Lanier understands the value DRM ought to have, even if he is not comfortable with the technology itself.

Furthermore, one of his ideas for reviving the music industry, a physical object called a “Songle,” would have to contain some form of DRM in order to work.  And he calls for augmenting Creative Commons with a scheme that resembles DReaM-MMI, a 2008 DRM research project from Sun Microsystems that attempted to get Creative Commons and DRM to coexist peacefully.  DReaM-MMI — the MMI stands for “Mother May I” — is a protocol for negotiating content usage rights that requires users to reveal details about their intended usage in exchange for more rights.

Lanier subtitles You Are Not a Gadget “A Manifesto,” possibly to position it against its intellectual opposite, the famous multi-authored Cluetrain Manifesto of 1999.  At that time, Lanier was also a big believer in climbing aboard the cluetrain.  But now he’s older and wiser, and he’s changed his tune.  He realizes that although the Internet holds a lot of promise for creative content, much of that promise is being squandered by limitations in technology and misconceptions of vision.

You Are Not a Gadget is the right person saying things that really need to be said, and saying them in a way that is as impassioned as it is carefully reasoned.  It ought to be required reading for everyone involved in digital content.

Get it today.

January 31, 2010

C&T 2010: New Date, Keynote Speaker

We have changed the date of the Copyright and Technology 2010 conference from June 10 to June 17 in order to accommodate some of the key speakers we wanted to have on the program.

I’m pleased to announce that Michael Fricklas, EVP and General Counsel of Viacom, will give a keynote speech in the morning after my opening talk.  Speakers in the afternoon sessions will include Mitch Singer, CTO of Sony Pictures Entertainment and President of the Digital Entertainment Content Ecosystem; and Jim Kennedy, VP of Strategy of the Associated Press.

Because of the changed conference date, we’re extending the deadline for speaking proposals; you have until February 19 to send them.  We are looking for moderators for most panels as well as speakers.  We also have information available about sponsorships.

January 27, 2010

Apple Joins E-Book Reader Competition

Apple’s new iPad tablet device will include a proprietary e-book reader application called iBook, available for free from the App Store.  iBook will use Adobe’s standard ePub format.  But that does not mean that iBook e-books will be readable on other ePub-compliant devices such as the Sony Reader and Barnes & Noble Nook.  Each of these devices uses its own DRM, which is not part of the ePub standard.

The “openness” of Apple’s e-book format is, thus, no more “open” than its music format was before iTunes went DRM-free: it was based on a standard codec — MPEG-4 AAC, the same as RealNetworks has used — but the files were protected by FairPlay DRM.  In all likelihood, Apple will be using a variant of FairPlay to encrypt e-books from publishers that require DRM, just as it uses a variant of FairPlay for video content on iTunes.

In other words, Apple has opted to go head-to-head with Amazon, B&N, Sony, and others in the e-book reader sweepstakes — with a device that costs two to three times the prices of the others.

Apple had other choices for its iPad publishing strategy.  It could have used Adobe’s Digital Editions/Content Server DRM, which is used by Sony, B&N, and most other platforms besides Amazon’s Kindle and Mobipocket — thereby providing some degree of interoperability with other readers and helping to compete with Amazon.  But Apple doesn’t like getting too close to Adobe — witness the (continued) lack of Flash support on the iPad, just like on iPhones.

Apple could also have adopted an entire e-reader ecosystem that works on multiple devices in addition to its own, by acquiring one of the existing players such as Zinio or Texterity.  But that would be even more out of character.

Or, Apple could have not bothered with an e-reader strategy and simply said, “We have a great SDK, and we look forward to working with publishers to develop breakthrough apps for their content.”  That would have been a reasonable choice, if an underwhelming one amid all the hype.

No one doubts that Apple will be a serious contender in e-books with the iPad, especially assuming that it adapts its iBook app for iPhones and Macs (and PCs?).

So what has happened here? From this perspective, the e-book DRM mess just got messier today.

January 26, 2010

ByteShield DRM Gets Reclaim Your Game Seal of Approval

Reclaim Your Game (RYG), a self-proclaimed DRM watchdog organization for the gaming community, released results of its testing of ByteShield and Sony SecuROM DRMs last week.  The San Francisco-based ByteShield achieved RYG’s highest rating of “End-User Friendly”  in each of eight categories, thereby meriting RYG’s Gold Seal of Approval.  SecuROM DRM, on the other hand, garnered an “End-User Friendly” rating in only one category, a “Tolerable” in another, and “Unacceptable” or “Unfriendly” in the remaining six.

RYG established itself in May 2008 in response to uproars over SecuROM in games such as Spore and Mass Effect.  It has evolved a rigorous testing methodology that rates gaming DRMs by looking for these signs of consumer-unfriendliness:

  • The DRM installs hidden files.
  • It installs without the user’s knowledge and consent.
  • It performs online hardware activations.
  • It blacklists (restricts use of) hardware and software on the user’s PC.
  • The DRM remains in the Windows Registry after uninstalling the game.
  • It “phones home” (reports data to a server without a user’s consent and/or modifies PC firewall settings).
  • It leaves DRM files behind after uninstall.
  • The vendor’s website information, customer service and tech support are unacceptable.

To earn RYG’s Gold Seal of Approval, a DRM must score over a threshold in each of the categories ranging from 80 to 100 percent.

Other major gaming DRMs including Ubisoft’s StarForce and Trymedia ActiveMark (RealNetworks) have yet to be tested.

It is truly refreshing to see an organization like this conduct what appears to be rigorous testing of the consumer-friendliness of DRMs rather than just declaring DRM to be unacceptable in any form.  RYG deserves much credit: it attracted lots of attention in its initial days with a site called “SecuROM Must Be Destroyed,” then parlayed the traffic into something of practical value for the industry instead of yet another source of cheap ranting.

The Federal Trade Commission, which held hearings on consumer labelling of DRM features last February (which RYG attended), would do well to look at what RYG is doing.  A consumer protection agency, not what appears to be an all-volunteer organization, should be doing this type of work.  The only other serious attempt I have seen to do this was the Center for Democracy and Technology’s 2006 white paper, Evaluating DRM: Building a Marketplace for the Convergent World.  But even that was a set of guidelines for reviewers and not a source of reviews itself.

ByteShield has apparently been working with the folks at RYG to design its DRM to maximize its RYG test results.  If so, that’s a good thing.  It means that RYG is becoming a representative of consumers’ interests in the market in a real, palpable way, not just through rhetoric.

January 22, 2010

Digging in the TechDirt

The German news publishing industry is asking for an antitrust investigation into Google’s search advertising practices, which mirrors concerns about what news publishers all over the world have raised for years over what they call “free riding.”

This story wouldn’t have gotten that much attention on this side of the Atlantic Ocean — other than the New York Times story referenced above — but for a post about it by Mike Masnick on Techdirt this past Tuesday.  (No, I won’t help Techdirt’s search engine rankings by including a link.)  In the post, Masnick accuses German news publishers of being “Apparently Very Confused [a]bout How [t]he Internet Works.”

If there’s anyone here who’s confused about how the Internet works, it’s Mike Masnick.  Techdirt is not alone among the dressed-up blogs that attract lots of traffic with their stories about the tech industry that often betray smugness and ignorance, but this one — as they might say on the other side of the pond — takes the biscuit.  It scales new heights of wrongheadedness and irresponsibility among widely-read publications.

Masnick should use his favorite search engine and look up “free riding” or “contextual advertising” to find out what he’s missing.  He should also look up “Google book settlement” to find that what the German news industry is doing is far from original — although the antitrust approach is somewhat novel.  Finally, he should understand the difference between Google News and plain old Google search results (a difference that the Times article admittedly glosses over).

Masnick adds insult to injury by suggesting that the blinkered, hopelessly out-of-it German news publishers have no right to launch a legal action against Google because they have failed to monetize the Internet thus far.  Uh, says who?  Oh, right… says Mike Masnick.

(And by the way, this isn’t the first time.  Mike Masnick has a history of writings about copyright-related issues that betray less knowledge of the subject matter than he believes himself to possess.  This is why I don’t normally read Techdirt.)

Normally I’d post a comment to the Techdirt story itself.  But after the 50 or so comments posted over the past two days, my comment would be utterly lost after all the other comments about Hitler, World War II, Iraq, and other issues highly relevant to the long-running, unsettled disputes between search engines and publishers over contextual advertising and the right to display copyrighted works in search results.

January 21, 2010

Correction to Story on CoreMedia

I have posted a correction to the story on CoreMedia’s DRM server offering from earlier this week.  This post serves to ensure that email and RSS subscribers see the correction.  Again, I apologize to CoreMedia and to readers for the errors (which resulted from – in essence – a key piece of information about CoreMedia’s new offering having gotten caught in my spam filter).

January 21, 2010

Copyright and Technology Conference: June 10, 2010

We have set June 10 as the date for the Copyright and Technology 2010 conference, which will take place in NYC, co-produced by Gotham Media Ventures.

We have a conference brief available for potential sponsors; just email me to receive a copy, which describes the agenda, expected audience, marketing, and so on.  Several sponsorship levels are available ranging from Media Sponsorship to Conference Sponsor; the latter will be able to work with us to define a panel during the morning plenary session.

The conference agenda is as described previously; we are accepting speaking and moderating proposals, the deadline for which is Friday, February 12 (we need long advance notice of speakers to satisfy Continuing Legal Education requirements).  Please email proposals to me with the following information:

  • Panel(s) you are proposing
  • Name and contact information
  • Brief bio
  • One or two paragraphs on your background, view, or perspective on the panel topic(s)
  • Contact information for any PR agent or other speaker’s representative, if any