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Page 1: Showcasing a National Experience : Development of DRM Standards Development of DRM Standards Showcasing a National Experience : Development of DRM Standards.

Showcasing a National Showcasing a National

Experience :Experience :

Development of DRM Development of DRM

StandardsStandards

Showcasing a National Showcasing a National

Experience :Experience :

Development of DRM Development of DRM

StandardsStandards

Korea Software Copyright CommitteeKorea Software Copyright Committeewww.socop.or.krwww.socop.or.kr

Kim, Won-HakKim, Won-Hak

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Proposal to Dismantle DRMProposal to Dismantle DRM1

ContentContent

ssScope of DRM Scope of DRM 2

Legislation on DRM in Korea Legislation on DRM in Korea 3

Cases on TPMs Cases on TPMs 4

RMIRMI5

Application of DRM on Music Application of DRM on Music 6

DRM on Other Types of WorksDRM on Other Types of Works7

Tasks for DRM StandardizationTasks for DRM Standardization8

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Proposal to Dismantle Proposal to Dismantle DRMDRM (1)(1)

Steve Jobs demanded record companies to dismantle DRM

(February 6, 2007) The application of Apple’s DRM system is a prerequisite for music sales

- Apple protects music copyrights through DRM called ‘FairPlay’ by

agreeing licenses for the distribution of music from the ‘Big 4’

(Universal, Sony BMG, Warner, and EMI) that dominates 70 % of the world

music market

Less than 3% of iPods use DRM applied music; the remaining 97% of mp3

files are without DRM

- It is not possible to put limitations on iPod users through DRM

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Proposal to Dismantle Proposal to Dismantle DRMDRM (2)(2)

Of the 4 Big global record companies, only EMI has chosen to provide music without DRM.

According to Information Week, which reported data from Jupiter Research:

- ‘Research on Entrepreneur of European Record Companies’ shows that 62% replied that dismantling DRM will promote the distribution of digital music

- 54% replied that DRM is an excessive restraint - 56% disagreed with the statement that ‘DRM is necessary for online

music’ and only 11% replied that ‘Dismantling DRM will impact their business negatively’

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Proposal to Dismantle Proposal to Dismantle DRMDRM (3)(3)

Dismantled DRM and introduced a service to download all music

within Bugs Music for a monthly fee of $4

- “Bugs Music will temporarily dismantle DRM for the convenience of

customers until the interoperability of MP3 files are guaranteed”

- Although Bugs Music have mentioned that they dismantle DRM for

the convenience of customers, but it was due to low sales of DRM

applied music

Proposal to Dismantle DRM by ‘Bugs Music’ in KoreaProposal to Dismantle DRM by ‘Bugs Music’ in Korea

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Scope of DRM Scope of DRM (1)(1)

DRM technology is a system that restrains the illegal copying or

distribution of digital contents by utilizing encryption technology

Generally the function of DRM technology can be categorized into

protection, management and distribution

Definition and TypesDefinition and Types

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Scope of DRM Scope of DRM (2)(2)

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Scope of DRM Scope of DRM (3)(3)

WCT Provision definition

- The term "technological protection measures" means the measures to effectively protect the program copyrights through an input of identification numbers or authentication numbers, an encryption with respect to programs, and other key technologies or devices, etc. to protect the rights

Obligations concerning Technological Measures of WCT Art.11

- Contracting Parties shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors in connection with the exercise of their rights under this Treaty or the Berne Convention and that restrict acts, in respect of their works, which are not authorized by the authors concerned or permitted by law

DRMDRM

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Scope of DRM Scope of DRM (4)(4)

WCT Provision definition

- “rights management information” means information which identifies the work, the author of the work, the owner of any right in the work, or information about the terms and conditions of use of the work, and any numbers or codes that represent such information, when any of these items of information is attached to a copy of a work or appears in connection with the communication of a work to the public

Obligations concerning RMI of WCT Art. 12

- Contracting Parties shall provide adequate and effective legal remedies against any person knowingly performing any of the following acts knowing, or with respect to civil remedies having reasonable grounds to know, that it will induce, enable, facilitate or conceal an infringement of any right covered by this Treaty or the Berne Convention

( ) to remove or alter any electronic rights management information without authority ⅰ ( ) to distribute, import for distribution, broadcast or communicate to the public, ⅱ without authority, works or copies of works knowing that electronic rights

management information has been removed or altered without authority

RMIRMI

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Legislation on DRM in Korea Legislation on DRM in Korea (1)(1)

Computer Programs Protection Act : Software

Copyright Act : Copyrighted works

Act for Online Digital Content Industry Development : Digital content

Act for Promotion of the Game Industry : Games

Legislation on DRMLegislation on DRM

Industrial Development Technical Development Training Professionals Standardization

DRM & Industry PromotionDRM & Industry Promotion

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Legislation on DRM in Korea Legislation on DRM in Korea (2)(2)

Under the current Act, the circumvention of TPMs is prohibited

Art. 30, Computer Programs Protection Law

Art. 124, Copyright Act

Art. 18, Act for Online Digital Content Development

DRM ProtectionDRM Protection

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Legislation on DRM in Korea Legislation on DRM in Korea (3)(3)

There is no separate provision on TPMs but related policy is under

progress

Art. 13, Act for Promotion of the Game Industry (Protection of

Intellectual Property Rights)

② The Government can promote the following projects for protecting the intellectual property right of games

1. Technical protection of games2. Implementation of showing RMI, which identifies games and the

developer of game

Act for Promotion of the Game IndustryAct for Promotion of the Game Industry

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CurrentCurrent

provisionsprovisions

Current Provisions Judicial Decision

Korean Supreme Court’s Decision :

Access control measures can be

protected if they have an equal

effect to copy protection

The term "technological protection measures" means the measures to protect the program copyrights through an input of identification numbers or authentication numbers, an encryption with respect to programs, and other key technologies or devices, etc. to protect the rights efficiently

Cases on TPMs Cases on TPMs (1)(1)

Recognizes copy control type

technological protection

measures only

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Cases on TPMs (2)Cases on TPMs (2)

Supreme court caseSupreme court case

Activity that enables illegal game CDs with no access code

to run on the ‘PlayStation2’ is included in the activities that

circumvent TPMs stipulated in CPPA, Art. 30.2

( 2004do2743, Feb 24, 2006 2004do2743, Feb 24, 2006 )

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Cases on TPM (3)Cases on TPM (3)

1. Case on Mod Chip in The Sony PlayStation 2

2. Australian Federal Court decided that the PS2 Mod Chip is not

designed to circumvent the code inserted by Sony to prevent

illegal copying of game CD

Judicial decision in AustraliaJudicial decision in Australia

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Cases on TPM Cases on TPM (4)(4)

Australia vs. KoreaAustralia vs. Korea

Different results on same legal issue

Due to difference of regulation

Changes after FTAChanges after FTA

Australia: Revised related provisions after the AUSFTA

Korea: Laws not revised since the conclusion of FTA talks

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RMIRMI (1)(1)

RMI means the information falling under any of the following items or

the numerals or symbols indicating the said information, and each

information is attached to the original, or its reproductions of the works,

stage performances, phonograms, broadcasting, or database, or is

accompanied with its public performances, broadcasting or transmission

ProvisionProvision

Art. 29, CPPA, Art. 124, Copyright Act, Article 17, Act for Online

Digital Content Industry Development prohibits removal or

alteration of RMI

DefinitionDefinition

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RMI (2)RMI (2)

CaseCase

If the production date and display date are not indicated in the cartoon. it is

excluded from the subject matter of protection regulated in Art. 18.1 of the Act

for Online Digital Content Industry Development. Therefore, reproducing and

transmitting the cartoon does not violate Art. 18.1 (2004do9073, Feb 10,

2006)

Act for Online Digital Content Industry DevelopmentAct for Online Digital Content Industry Development

Art. 18.1 of the Act for Online Digital Content Industry Development regulates

“Unauthorized persons may not infringe the rights of competitors and cause

them to incur losses in terms of business profits by reproducing or

transmitting all or part of the online contents created and displayed through

the efforts of other persons”

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Application of DRM on Music Application of DRM on Music (1)(1)

Current Status of Closed DRMCurrent Status of Closed DRM

Closed DRM has been adopted by 2 of the 3 major Korean music

service providers

- Music provided by each online music site with their own DRM are

not allowed in other devices

Promotion of the digital content industry can be impeded by the abuse of

market-dominant position of using Closed DRM as a barrier for market

access

- DRM interoperability can be impeded by complicated technology, strategic

use of non-compatible DRM, and a diversity of business model

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Application of DRM on Application of DRM on Music (2)Music (2)

iPods CaseiPods Case

In France, Apple denied the request to license ‘FairPlay’, DRM technolody

of iPod

- Respect to the abuse of the market-dominant position of Apple, the Fair

Trade Commission decided the Apple’s DRM as a non necessary element

 According to the ‘Digital Copyrights Law’ legislated in France in 2006:

- Providers of DRM systems should provide the necessary technical

documentation to any party needing it to ensure that interoperability. In

practice, this would mean that makers of software or hardware players

could request information from providers of DRM-protected music or video

in order for that music or video to be playable on their system

- The publication of the source code or technical documentation of systems

implementing DRMs is not prohibiting by the protection granted to DRMs

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Application of DRM on Music Application of DRM on Music (3)(3)

Application of DRM in the Korean Music MarketApplication of DRM in the Korean Music Market

Before 2005, the mobile phone service market was the main market for the digital music industry

- The online market was then promoted by the emergence of online music services and charged P2P systems

- The two companies which led the application of DRM used closed DRM to let music be played on particular devices

- Claimed that the DRM standard was premature and that service providers must be paid with incentives to elevate the payment based market

Therefore, they used closed DRM as a barrier to market access so as to maintain their ‘temporary leading position in the market’ and to minimize market competition

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Application of DRM on Music Application of DRM on Music (4)(4)

Application of DRM in Korean Music Market Application of DRM in Korean Music Market (cont’d)(cont’d)

Some online music service providers requested the interoperability

of DRM

- Due to the closed DRM policies of mobiletelecommunication

companies, users cannot play files they legally purchase from

online music service providers like Bugs or MaxMP3 on their

mobile phones.

- They argue that such activity is non-fair trade behavior prohibited

by the Unfair Trade Law

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Application of DRM on Music Application of DRM on Music (5)(5)

Application of DRM in Korean Music Market (cont’d)Application of DRM in Korean Music Market (cont’d)

‘EXIM’, a DRM inter-operational technology standard, developed by ETRI

The S company first developed an inter-operational solution by utilizing EXIM

- DIMF [digital music forum], an association of online music providers, selected Inka Entworks as a developer of DRM inter-operational solutions for follow up

The K company began development of related technology to fit the requirements of the plan suggested by the Ministry of Information and Communication

Mobile telecommunication companies who did not use their own DRMs had no problem with DRM inter-operational issues.

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Application of DRM on Application of DRM on Music (6)Music (6)

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DRM on Other Types of DRM on Other Types of WorksWorks

Due to the recent rapid growth of the mobile technology market, digital broadcasting market, and DVD market, DRM technology development is progressing focused on the related platforms

For a DRM standard, various kinds of standardization organizations such as SDMI, OeBF, DVD Forum, IDRM, DOI, and MPEG-21 arose around year 2000

Among standardization organizations, OMA (Open Mobile Alliance) and

MPEG-21 are the most active: - OMA was established in June of 2002 to set up mobile standards. OMA

announced Mobile DRM v2 in 2004 and continues the standardization processes

- MPEG-21 aims at producing various kinds of comprehensive multimedia framework specifications for various kinds of digital content services and currently it is the most active organization

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Task for DRM Standardization (1)Task for DRM Standardization (1)

Technical difficulties for various kinds of digital contents

- As the varied, individual DRM content are currently serviced, there are difficulties in technology and policy in transforming them into another kind of new DRM content - Vulnerability due to the disclosure of security technology and restrictions in applying various kinds of security mechanisms could follow because of the characteristics of DRM

Currently there is no dominant DRM standard and DRM is closely related with business  The basic framework of government support for DRM standardization exists by industry

The plan for standardizing various digital contents must progress with a long- term view

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Task for DRM Standardization (2)Task for DRM Standardization (2)

OECD and other technical and institutional advisors of each country admit

the role of market and demand the careful act of government

- Promote the formation of standard by competitions in the market

- Limiting government role of sanction against the abuse of market-dominent

service providers that acquired de facto standards

- In order to attract investments in initial stage of market, closed DRM should

be partially allowed

 DRM standards must be decided in the market and government should

support this standardization process

- Applying the Unfair Trade Law to those abusing their market-dominant

positions by using closed DRMs

- Allowing analysis of competing companies’ DRM for interoperability and

R&D

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Thank You !Thank You [email protected]