Business Models and IPR
Transcript of Business Models and IPR
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J. A. Barria
OCCAMM WorkshopBrussels, 25 May 2000
Business Models and IPR
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Content
• The need for a Business Model (BM)• Definition of a BM• The emerging value chain• Model based on core competencies• Content Right Intermediary (CRI) BM• EC funded projects and their BMs
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The Need for a Business Model (1)
• Changes in the market place
– Rapid technological obsolescence,– Rapid changing industry setting and value drivers,– Open product offerings,– Emergence of new market spaces,– Shift from resource-based competition to
information-based competition.
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The Need for a Business Model (2)
• Traditional business structures cannot keeppace with the greater uncertainty andcomplexity of a dynamic market place.
• A more discovery-driven approach isrequired, capable of identifying, proactivelyreacting to, and seizing new opportunities asthey emerge.
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The Need for a Business Model (3)
• Survivors are players able to adapt, learn bydoing, and open to adjustment as they goalong and hence:– Bringing the “environment” into Production,– Sustaining its services and operation over time,
and– Considering different possible trading
relationships.
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Examples of Trading relationship:Transaction Models
– Information Flows– Payment Flows
• Pay per view,• Pay on delivery,• Pay on approval (e.g. after sampling),• Pay with cupons,• Swap/Trade,• Auction or Resale.
– Rights Flows• Steal (piracy).
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Definition of a Business Model[Timmers98, Focus Theme, EC, 1998]
• An architecture for the product, service andinformation flow, including a description ofthe various business actors and their roles;and
• A description of the potential benefits forthe various business actors, and
• A description of the source of revenue.
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Web Business Model Examples
• Brokerage model (market Makers);• Merchant Model (Wholesalers);• Procurement Model;• Advertising Model:• Manufacturer Model;• Subscription Model;• Affiliate Model;• Free trial/sample Model;• Real estate Model (Web space...);• Community Model;• Direct Marketing Model;• Utility Model (meter usage)...
• Library Model;• Open source Model;• Information barter (Informediary)
Model;• Access provision Model (ISPs… )
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Terminalvending
InfrastructureprovisionService
provisionContent and
servicepackaging
ContentCreation
User
Contentsupply
Tailoring and branding
Platform and connectivity
DeliveryTransmission
Access control
Function
Activity
The Emerging Value Chain (1)(Telecom/Media/Info convergence)
Source: Squires Sanders Dempsey LLP and Analysis Ltd.
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The Emerging Value Chain (2)
• Shift in the value chain due to changes onpatterns of consumption.
• value migrating from:– Simple delivery,
• to– The production and packaging of content, or– On-line transactions and offering of services.
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Core strength
Partial competence
Potential contractual link to another player
Extending relationship or contractual links
ContentCreation Packing Service
ProvisionInfrastructure
ProvisionTerminalVending
Telecom Operators
Source: The Green paper on the convergence, EC, 3. Dec. 1997
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Core strength
Partial competence
Potential contractual link to another player
Extending relationship or contractual links
ContentCreation Packing Service
ProvisionInfrastructure
ProvisionTerminalVending
Broadcasters
Source: The Green paper on the convergence, EC, 3. Dec. 1997
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Core strength
Partial competence
Potential contractual link to another player
Extending relationship or contractual links
ContentCreation Packing Service
ProvisionInfrastructure
ProvisionTerminalVending
Internet Service Providers
Source: The Green paper on the convergence, EC, 3. Dec. 1997
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Online Services/Websites(e.g. AOL, T-Online, Yahoo, MSN, Excite)
Internet-on-TV(e.g. WebTV Classic,
dedicated internet Set-Top-Boxes)
PushConcepts/Webcasting(e.g. Pointcast, Marimba Castanet,
Browser built-in Channels)
Advanced/Enhanced-TV(e.g. WebTV Plus, NCI,
Worldgate, Wink)
PC-based Online-TV(e.g. Intel Intercast,
Real Networks/Streaming video)
TV Programmes/Services, (digital) Pay-TV
(e.g. NBC, CNN, Cable TV, HBC)
New/ additional functions
New platform
Source: Thielman and Dowling, U. of Regensburg, Germany, 1999
Direction for further Innovation(Web-TV convergence)
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Model based on Core competencies[Selhofer and Wurfl EC DG XIII/E, 1997]
• Composed of two layers:
– Content• Creation, Packaging and market Making,
– Infrastructure services• Transport, Service Delivery, Interfaces and systems.
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MarketMaking
ContentPackaging
ContentCreation
User
InfrastructureServices
Content
Terminalvending
InfrastructureProvision
ServiceProvision
Source: Adapted from [Selhofer and Wurfl] EC DG XIII/E, 1997
Core competencies Model
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The Content Right Intermediary BM
• The evolution of new technologies:– Enhances the medium for online trading,– Permit transaction of important and confidential
information, and– Allow for lower reproduction costs of digital
content, but ...– Exposes information to a variety of security
threats.
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ICRS EC project Key Issues[Imprimatur project]
• Attempt to encompass the domain of IPR asa list of key issues:
– Identifiers and establishing rights,– Monitoring and managing use,– Creator rights and responsibilities,– Economic issues.
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Monitoring and managing use
• Requirements of the secure transaction ofdigital content:– Audit,– Non-repudiation,– Authentication (about restricted access),– Integrity,– Confidentiality, and– Anonymity (about consumer rights).
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The Content Right Intermediary (CRI)
• Facilitates technologies for securetransactions of digital content e.g.:– Data encryption,– Watermarking,– Finger printing,– Certification, and– Digital signature.
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MarketMaking
ContentPackaging
ContentCreation
User
InfrastructureServices
Content
Terminalvending
InfrastructureProvision
ServiceProvision
Content Rights Intermediary
The CRI and the value chain
Source: Adapted from [Felder et al EC DG XIII/E, 1996]
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Creator Producer
RightHolder
$ $
IPR Data
Unique Number
Unique NumberIssuer
IPRDatabase
Creation Description
Facilitates: Unique Identification of Data
Source: Rightscom
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MediaDistributor PurchaserProducer
$
CertificateAuthority
Media distribution ID ?
Purchaser ID ?Media Distributor ID ?
Facilitates: Content Security
Source: Rightscom
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EC funded projects and their BMs• The Imprimatur model
– Conceptual Framework for ElectronicRights/Copyright management systems(ERMS/ECMS).
• The Filigrane Model– Secured management of mobile code
(distribution and usage).
• The ATMAN trading Model– Trading of Audio Visual material based on
electronic means.
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CreationProvider
Creator
MediaDistributor
Purchaser
UniqueNumberIssuer
Certific.Authority
Request forUnique
Number andGeneration
CertificateIssuance andManagement
Transfer ofContents(Work)
Transfer ofvalue
RightsHolder
IPRDatabase
MonitoringServiceProvider
Assignmentof Rights
IPR Info Request forLicense and
Authorization
TransactionLog
IPR Info
Rights Holderreference and
paymentdetails
Imprimatur
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MobileCode
Producer
MobileCode
Provider
MobileCodeUser
FeeCollecting
Agency
ValueCollection
ValueRedistribution
ValueRedistribution
Rights/FinancialSynchronization
E-Notary
NotarizesEvents
ProvidesTrusted Audit
RightsClearingHouse
ProducerRights
Definition
DistributionLicense
Agreement
Usage LicenseAgreement
CACardIssuer
UniqueNumberIssuerIssues
Smart Cards
Issues UniqueIdentifiers
Issues &Manages
Certificates
QualityLabel
Service
Value
Rights
Mobile Code
Filigrane
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ATMANCompany
ContentProvider
ATMANSystem
ContentBuyers
(Distributors)
GeneralPublic
Use thesystem to identifycontents to buy
$
AV Contentdelivery
Use thesystem to advertise
the sale ofcontents
Managethe systemSubscribe to
ATMANSubscribe to
ATMAN
Grant rights to handle contents in the ATMAN system
$ $
Right-owners(Authors) $
AV Content +utilization rights
$
$Grant rights for
RightCollectingSocieties
$
$Grant rights for
distributionproduction
Mandate to administrate rightsRight-owners
(Authors)
ATMAN
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Summary
• The need for a Business Model (BM)• Definition of a BM• The emerging value chain• Model based on core competencies• Content Right Intermediary (CRI) BM• Some EC studies on BMs