September 19, 2005
Hollywood Unites in the Battle to Wipe Out Movie Pirates
By DAVID M. HALBFINGER
http://www.nytimes.com/2005/09/19/business/19film.html?ei=5090&en=6891d908f4
592160&ex=1284782400&adxnnl=0&partner=rssuserland&emc=rss&adxnnlx=1127117187
-ixWMeB3BWyCRi245JSpAKA&pagewanted=print


LOS ANGELES, Sept. 18 - The six major Hollywood studios, hoping to gain more
control over their technological destiny, have agreed to jointly finance a
multimillion-dollar research laboratory to speed the development of new ways
to foil movie pirates.

The new nonprofit consortium is to be called Motion Picture Laboratories
Inc. - MovieLabs for short - and will begin operation later this year.
According to Hollywood executives involved in its establishment, MovieLabs
will have a budget of more than $30 million for its first two years. The
idea arose out of Hollywood's contention that the consumer electronics and
information technology industries are not investing heavily or quickly
enough in piracy-fighting technology.

The lab is modeled after CableLabs, which since 1988 has spearheaded pivotal
innovations in the cable television industry - hastening the adoption of
fiber optics, cable modems, telephony and digital video. Hollywood's version
will begin with a more modest mandate, said Dan Glickman, chairman of the
Motion Picture Association of America. It will focus principally on piracy
prevention, though it will be given some flexibility to expand its mission
later, he said.

"We're not going to research how to make certain types of movies; that's not
what we're talking about here," said Mr. Glickman. He had been pressed, he
said, by the studio chairmen to set up MovieLabs, an idea that had lain
dormant for several years. "Our highest priority is protecting the integrity
of our product."

Still, with the ways of delivering video to consumers proliferating at a
rapid clip, that means a broad range of study. The initial projects planned
for MovieLabs include studying these problems or devising these solutions:

¶Ways to jam camcorders being used inside movie theaters, or to project
movies with flickering images that are invisible to the eye but will appear
on unauthorized video recordings.

¶Network management technologies to detect and block illegal file transfers
on campus and business networks.

¶Traffic analysis tools to detect illegal content sharing on peer-to-peer
networks.

¶Ways to prevent home and personal digital networks from being tapped into
by unauthorized users, while not preventing consumers from sending a movie
to more than one TV set without having to pay for it each time.

¶Ways to link senders and receivers of movies transmitted over the Internet
to geographic and political territories, to monitor the distribution of
movies and prevent the violation of license agreements.

James N. Gianopulos, co-chairman of 20th Century Fox, which led the studios
in pushing for MovieLabs, said it would ideally fill in what he said were
gaps in research on content protection left by consumer-electronics
companies and Silicon Valley. That, in turn, would encourage Hollywood to
embrace new ways of delivering movies to consumers - making those new
vehicles more marketable.

"It allows us to develop more ways of getting creative content into the
home, to mobile devices, theaters and so forth, without exposing us to more
sources of theft," Mr. Gianopulos said. "The more comfort you have in the
security of the content, the more able you are to expand the consumer's
access to it."

Mr. Glickman echoed that, saying consumer-electronics and information
technology companies may not see "an immediate commercialization, but to us
it's important."

"We have different objectives here," Mr. Glickman said. "That's why the
Pentagon set up Darpa, knowing that the companies wouldn't do it on their
own," he added, referring to the Defense Advanced Research Projects Agency.

The Hollywood studios have teamed up on research and development before,
most recently in the Digital Cinema Initiative, through which the major
studios combined with the Entertainment Technology Center at the University
of Southern California here to write uniform specifications for and test
digital movie distribution technology.

Dick Green, president and chief executive of CableLabs, which was closely
studied by motion picture association executives, said its approach to each
technological problem or need was the same: reach an industrywide consensus
on the direction to take, work with manufacturers to develop an approach,
refine a set of specifications into an industry standard and help
manufacturers develop and test prototypes.

"We help in the lab and in testing, and as part of incubation," Mr. Green
said. "The minute it becomes a competitive product, we exit."

Like CableLabs, the Hollywood consortium will have its own chief executive
who will report to the studio chairmen, not to the motion picture
association, Mr. Glickman said.



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