I agree with what Michael says.

However I'm not sure the rights holders insist on DRM. They insist on
protection of their income which flows from copyright, which is not
the same thing. DRM is today's solution to provide that protection,
but it is broken, costly, complicated, annoys end users, abuses their
rights to view content, invades their privacy, and leads to platform
dependence. (Pick any or all of these issues as unethical.) It may be
possible to deploy a non-wretched DRM solution, which provides
sufficient rights holders protection while minimizing the problems.
But I wouldn't bet on it. Moreover, even a functioning DRM system will
be useless if enough people are interested in the content, since it is
so readily available in the clear and powerful transcoding tools and
distribution methods are available to anyone. DRM is doomed over time.

So the best thing to do with DRM is trash it. But that begs the
question as to how to protect the rights holders income. It's a very
tough question which reaches to the heart of copyright, which after
all is an artificial construct, a state-decreed monopoly designed to
protect and reward creators, with legal recourse in case of
infraction. Several possibilities exist:

* How about outright payment for perpetual rights? Way too expensive,
especially worldwide. And how would payments be calculated in advance
for popular content vs. unpopular? Rights holders believe that popular
material should be compensated accordingly, as an incentive to create.
Of course, that approach favors lower-common-denominator content and
encourages advertisers to most support what is most popular. Some have
suggested that specialized "content creators" have had their day, that
we are entering the era of "UGC" user-generated content, and that an
adjustment is necessary for professional content creators. That may be
true, but informing rights holders that their era has ended will meet
with resistance (cf. US screenwriters strike).

* How about advertising? It's the television and radio model, with
rare exceptions (including the BBC and PBS in the USA). Are users
ready to be advertised to just to view content online? I'm not at all
sure, even if advertising could be sufficiently narrowed to a person's
interests, an approach with privacy implications in any case.

* How about tracking file use, and basing payment on that use? That
may be technically possible with watermarking (sort of DRM lite), but
monitoring downloads and sniffing packets may not be the best way. And
who pays if UK-produced content becomes wildly popular in the US but
is a bust in the UK?

* How about proportionally taxing bandwidth? Well, like the schemes in
France to tax blank CD-R and DVD-R media, it penalizes users who don't
download & copy illicitly. Besides, how do you tax the entire world?
That said, I think this may not be as farfetched as it seems. After
all, telcos (not just in the UK ;) are upset their margins will drop
with the growing popularity of internet video; they are pushing for
multi-tiered access, "premium" or guaranteed bandwidth. I think that
would be a mistake. However, it *is* common around the world for
people and companies to pay for their bandwidth and for companies to
finance infrastructure; although controversial, I think that could
work. But only on the basis of an international convention concerning
internet use of copyrighted works. There are precedents: international
legal conventions exist for the copyright and patent systems.

* Other ideas?

Sean.
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