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IP: DRM at `DOS level'
From: David Farber <dave () farber net>
Date: Tue, 31 Jul 2001 09:02:38 -0400
[Note: This item comes from reader Janos Gereben. DLH] At 17:52 -0700 7/25/01, Janos Gereben wrote:From: "Janos Gereben" <janos451 () earthlink net> Subject: DRM at `DOS level' Date: Wed, 25 Jul 2001 17:52:30 -0700 MIME-Version: 1.0 InterTrust DRM takes small steps to mass market Dawn Hayes - www.the451.com London - Digital rights management (DRM) software is a bit like operating system software, and right now it's at the DOS stage. When InterTrust Technologies announced its next-generation product at Jupiter MMXI's Plug.In event for the music industry in New York this week, it became clear just how unwieldy and expensive the company's previous-generation product was. In the same way that DOS never became a mass-market product, DRM won't make the big time until it's easier to use. The new product, called Rights System, allows content owners to sell rights-protected video, audio and text to users of any device. InterTrust's current product, Commerce System, makes this possible only for PCs. But few believe it's as simple as that. On a mobile phone, for example, once content is pumped out into the clear, no DRM company can stop people intercepting it. "The DRM companies, with the exception of Adobe, are very patent-oriented and engineering-driven," said Kirstie Chadwick, CEO of DigitalOwl, an applications company that built its own DRM infrastructure on the grounds that commercial products on the market were too difficult to implement. DigitalOwl's core business is developing DRM applications for publishers. Chadwick also said InterTrust's current generation supports only the PDF format. InterTrust's commercial development manager in Europe, Andrew Robins, claims Rights System and Commerce System support XML, HTML and JPEG as well as PDF. But DRM is a game of smoke and mirrors. Competitors say Rights System is just a repackaged version of the current system, making it easier to use. In fact, that's no mean feat. Consumers unfortunate enough to run into Commerce System - or almost any other DRM software for that matter - having elected to pay for a first piece of content, must spend at least 30 minutes downloading the DRM application to clear the transaction on the server. That's because on Commerce System there's 6MB of it, mainly to enable payments to be processed by a third-party clearing house such as Magex, Mercurix or Bertelsmann's Digital World Services subsidiary. With the new software, content owners can link DRM to their own internal billing systems, which has eliminated a vast chunk of code. Consumers only need to wait about a minute to download the billing software. In most cases, InterTrust says, the software is already installed on Adobe's Acrobat 5 Reader. It will also shortly be embedded in chips in mobile phones from Nokia. The issue of costs is another thorny issue: Rights System costs £100,000-500,000 ($142,000-711,000) to implement. Analysts say Commerce System costs up to a whopping £6m to implement and takes several months of blood, sweat and tears to install; InterTrust said it takes "not much more than four weeks" to install Rights System. That's still too long, but ASPs can get companies up and running quicker. Adobe, Blockbuster, Enron, Nokia and 16 portable device manufacturers have already adopted Rights System, which will become available in September, according to InterTrust. "It's a large-scale system and we expect the music publishers to go for it first," said Robins. Another improvement on Commerce System is that Rights System is modular. Companies in the business of selling video on demand on an outright purchase basis, for example, can ignore the InterTrust's subscription server product. And where Commerce System depends on customers tethering their devices to a PC to transfer content from one device to another, Rights System does not. One of the biggest unknowns for content owners is whether consumers are prepared to pay for content online. What is clear is that they will be even less inclined to do so if that means they must deal with complex software downloads. The companies that dominate the DRM space - ContentGuard, Microsoft, Adobe, SealedMedia and InterTrust - will need to deal with this issue in short measure. Beyond that, there is little to no interoperability between different vendors' systems. There's a long way to go yet in the DRM space.
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