| The media is abuzz with reports of illegal music and | | | | being distributed by using file sharing networks. Since |
| movie downloading, peer-to-peer file sharing and the | | | | many of the latest file sharing technologies are "open |
| related ongoing legal and legislative battles being played | | | | source" applications, such as Bittorrent, that are owned |
| out in our courts and in Congress. Most of these | | | | by no one and available to anyone, the tactic of |
| discussions perpetuate a myth that existing, or | | | | litigating against companies that operate P2P networks |
| soon-to-be-developed, digital rights management | | | | is becoming pointless. Technical measures for |
| (DRM) technologies are the key to solving the | | | | thwarting file-sharing have been attempted, but |
| entertainment industry's piracy woes. As support for | | | | countermeasures are created almost as fast. The |
| this notion, many cite Apple's successful iTunes music | | | | inescapable fact is that, short of a complete |
| download service. The conventional wisdom is that | | | | government-enforced lock-down of the Internet, |
| since Apple uses DRM and Apple is successful, then | | | | entertainment businesses will increasingly have to face |
| technical copy protection mechanisms must have | | | | the challenge of competing with free.In the real world, a |
| been instrumental in Apple's success. The truth is that | | | | significant number of microwave oven clocks blink |
| Apple's DRM technology, called FairPlay, was indeed | | | | 12:00 for years on end because consumers are either |
| instrumental in Apple's success, but not because it | | | | unable to learn how to set the time, or they are just |
| prevents digital piracy.For preventing piracy, FairPlay is | | | | unwilling to bother. Yet some in the entertainment |
| not only totally ineffective, it was implemented that | | | | industry continue to flirt with a fantasy that consumers |
| way on purpose. Once you purchase a song via | | | | will not only tolerate, but also pay for, DRM-based |
| iTunes, you are allowed to burn it to a CD. Once you | | | | solutions that are terrible for preventing piracy, but that |
| burn it, the song is completely beyond the control of | | | | are pretty good at inconveniencing the very |
| iTunes. You can rip the song off the CD by using | | | | consumers upon whom commercial success depends. |
| perfectly legal software, such as the Windows media | | | | This notion that DRM can protect rights holders and |
| player; post the music on a file share; re-encode it in | | | | help them to compete with free is perpetuated by the |
| MP3 format; or make a million copies of the CD and | | | | purveyors of multiple incompatible DRM solutions. |
| give them away in Times Square. FairPlay does | | | | These vendors find an eager audience with some |
| nothing to prevent people from doing those things. So, | | | | executives who are so desperate to insulate their |
| since the notion that FairPlay prevents piracy crumbles | | | | business models from change that they are willing to |
| in the face of logical analysis, why did Apple bother to | | | | believe that the DRM snake oil will protect existing |
| create it?There are two very logical justifications for | | | | revenue streams.Apple's iTunes has demonstrated |
| FairPlay. One has nothing to do with the effectiveness | | | | that you can indeed compete with free. But as this |
| of DRM and everything to do with marketing. That is, | | | | document has shown, the effectiveness of Apple's |
| having a DRM illusion made it much easier for Apple to | | | | DRM in thwarting illegal copying played no part in that |
| convince record labels to distribute their music through | | | | success. It is important to note, however, that Apple |
| iTunes. Another reason for FairPlay's existence has | | | | could not be successful with iTunes solely by creating |
| nothing to do with protecting rights holders from piracy | | | | technical and legal barriers, or by promoting its DRM to |
| and everything to do with protecting Apple from | | | | rights holders as an elixir to piracy. The other half of |
| competition. The iTunes service and Apple's iPod | | | | the iTunes formula for success is completely |
| player were designed to work together and the | | | | dependent on peoples' behavior: if consumers did not |
| proprietary FairPlay technology helps to exclude | | | | recognize value in iTunes, they would simply not use it. |
| interlopers. Any iTunes or iPod clone-maker would | | | | Moreover, virtually every song legitimatly purchased |
| have to reverse engineer FairPlay, making the task of | | | | through iTunes can be acquired fairly easily for free |
| creating clones all the more difficult and giving Apple | | | | via illegal means. Apple's iTunes service, in combination |
| both technical and legal counterattack options. For | | | | with the iPod player, offers consumers a complete and |
| example, when RealNetworks introduced Harmony, a | | | | integrated solution that is easy to use, flexible (e.g. you |
| technology that makes the RealPlayer Music Store | | | | can burn songs to CD) and stylish. Apple is attractive |
| compatible with iPods, Apple responded with a threat | | | | to consumers, not because Fairplay DRM is restrictive, |
| that future Apple software updates would likely break | | | | but in large part because it is not.Pundits and vendors |
| the compatibility and even went so far as to question | | | | are doing a profound disservice to the entertainment |
| the legality or Real's action under the Digital Millennium | | | | industry by perpetuating the DRM myth and holding up |
| Copyright Act (DMCA), which makes circumventing | | | | iTunes as an example. With iTunes, Apple has not |
| copy protection illegal. This case clearly demonstrates | | | | demonstrated the value of DRM to either consumers |
| that Apple intends to use FairPlay to protect its own | | | | or rights holders. Apple has shown, however, that you |
| commercial interests, which have nothing to do with | | | | can successfully compete with free, and get |
| preventing piracy.Although hackers have compromised | | | | consumers to open their wallets, if you can offer them |
| FairPlay, digital content pirates do not have to; they can | | | | convenience and value. The entertainment industry |
| simply take advantage of a gaping, built-in hole. But | | | | should take heed from the real iTunes example: give |
| even if we ignore all past experience with copy | | | | consumers a great offering at a reasonable price, and |
| protection and assume that FairPlay could be made | | | | you just might eliminate the incentive to acquire works |
| foolproof, it would still provide little or no protection to | | | | illegally and make digital piracy obsolete.Jim Flynn is the |
| rights holders from piracy. Copies of digital content are | | | | CEO of EZTakes, Inc., a service that provides movie |
| exact copies. They do not degrade no matter how | | | | downloads. EZTakes is the first offering of its kind that |
| many times you duplicate them. Consequently, even | | | | enables consumers to download movies to DVDs that |
| just one in-the-clear copy of a digital work can be | | | | will play on almost any DVD player. Jim can be |
| perfectly duplicated millions and millions of times while | | | | reached at (413) 529-0870. |