Category: Legal

Items involving the law or legal action

Jo

In his keynote presentation at the Net-atHome conference in Nice, France, João Da Silva gave an overview of where Europe is with digital media within the home, what the trends are and where Europe would like to be in the digital landscape.

Da Silva is Director of (deep breath) Communications Networks, Security and Software applications, at the European Commission. His opening slide stressed the European Commission’s desire to create equilibrium between three parties, the consumer; technical suppliers; and content owners. They want to create a balance where the rights of the content owner and the consumer are protected, to try and level the current imbalance, as “there has been a tendency to protect the rights of rights holder over the consumer.”

Moving on to bandwidth, he declared that since July 2002 broadband in Europe has grown over 248%. Despite this he feels there is a danger of a digital divide over Europe – not between no access and some access, but a split of where there is broadband of decent speeds and where there is insufficient for the next generation of entertainment.

He highlighted the huge variation in pricing of broadband services over Europe, giving the example of the contrast between Belgium and France; the first giving a 3Mbps connection and the latter 150Kbps – for the same charge. While some felt this example wasn’t quite as simple as the headline sounds, as it ignored the population density of the two countries, it does point to disparity. He illustrated this further, with examples of companies moving their offices to get bandwidth. The message was clear, member states, get your broadband up to scratch or you’ll start falling behind.

The inevitable comparison with Asian markets was covered. Japan now offers 100Mbps over Fibre To The Home (FTTH) for €22/month (~$29, ~£15) and Korea offers 50Mbps over VDSL.

When discussing the explosion in content, Da Silva pointed to blogs as a major source of new entertainment – content created by the consumer, for the consumer. He quoted the growth of blogs running at rates of 20% per month and generating traffic of 8Gbit of traffic daily. The EC are generally excited about the growth in user-generated content, seeing it as a real option to, what is currently seen as entertainment.

Concluding his presentation, he reminded the audience that the European Commission’s Information Society Technologies (IST) programme has a four year research budget with a net worth of €4Bn (~$5.34Bn, ~£2.76Bn), equating to €1Bn year. He encouraged all with innovative ideas to apply.

European Information Society Technologies (IST) Net-atHome conference

Entertainment Now: UK 3’s Deal with APTN

3, the first 3G network in the UK, are further enhancing their content offering by announcing a deal with Associated Press Television News (APTN). APTN will provide the video show, “Entertainment Now” that will be released twice a week and cover ‘celebrity entertainment’. In their words, it will be “quirky and irreverent, poking fun at the rich and famous, and of course, the infamous.”

3 customers have two ways to pay for the content. At 50p per clip or they can watch as much video as they like by paying £5 per month for the “video value” add-on.

We spoke to Deanna Gullery, APTN’s New Product Marketing Manager about the deal. They currently sell a 24 minute version of Entertainment NOW (is it just us or is the capitalisation unnecessary?) that goes to air with a number of broadcasters in various countries on a weekly basis.

The 3 version will be a cut down version, primarily featuring celebrity interviews, calling on AP’s strong access to the stars. It will be edited in-house down to between 2 and 4 minutes, voiced over and releases on Tuesday and Thursday.

We think the 3 deal is an interesting example of a content creation company making the most of their assets – “Sweating your assets” as we believe the 80’s phrase for was. AP are all over the world (80 bureaux in 67 countries) shooting this type of material for ‘traditional’ media outlets anyway. Why not make the most of it and edit it together in to custom pieces? We’re strong believers in this type of approach.

We don’t think this is the kind of content that will drive people to join the 3 services, it’s more about maximising Average Revenue Per User (ARPU, in trade terms). Their current ARPU taking the first 7 months of this year is £43.22 per customer, per month.

Three
Associated Press Television News

Philips Sells Total Holding In Vivendi Universal

Royal Philips Electronics has sold its total holding of 32,265,561 shares in Paris-based conglomerate Vivendi Universal. The transaction, which closed yesterday, will provide Philips with proceeds of approximately 720 million euros, and will result in a non-taxable gain of approximately 300 million euros in the fourth quarter. Prior to this transaction, Philips’ holding represented approximately 3 per cent of Vivendi Universal’s outstanding shares. Philips’s share prise rose 1.1 per cent after the announcement, while Vivendi shares fell 0.7 per cent.

The initial combination of the companies was believed to lead to the strengthening of all parties involved, including Philips and its shareholders, by creating a global powerhouse in entertainment and services in the new economy. Philips was a set-top box provider for Vivendi, with whom it supplied to Vivendi’s Canal+ division. Philips has not commented further on why it has sold all of its holdings

Vivendi Universal which began as a French civil engineering enterprise, grew to absorb the Universal entertainment conglomerate in the US and then sold or spun off most of its media acquisitions after investors lost patience over rising debts. Restructuring since 2002 has reduced Vivendi to a much smaller, but significant French film, television and telecommunications operator. The company was expected to drop the ‘Universal’ part of its corporate name in 2003 after a deal that transferred its US film, theme park and cable television interests to a joint venture with NBC-owner General Electric.

In 2001, Vivendi Universal and Sony launched ‘Duet’, an alternative to Napster. The service sported monitoring of what’s downloaded and listened to, better sound quality, a subscription service, and pay-per-listen options. ‘We hope to license 50 per cent of the world’s music’, said a company representative. To kick-start the venture, Vivendi Universal purchased MP3.com for about $350 million, a move that followed Napster’s deal with media conglomerate Bertelsmann. Both deals marked a critical moment of détente and an admission that the labels needed the help of their one-time enemies, as they got serious about online distribution. Unfortunately, that dream failed too.

Philips
Vivendi Universal

MPAA Judge Finds ‘bulldozer’ approach ‘improper’

Last week, members of the Motion Picture Association of America (MPAA) filed 11 lawsuits against hundreds of people they accused of using file-sharing networks to share infringing copies of movies. However, the Federal Judge ruled the ‘bulldozer’ approach improper, ordering that the case should be put on hold for all but one of the defendants.

The move by the MPAA to group defendants into arbitrarily-joined actions was probably thought of as a ‘neat’ and easy way to get the message across to other US citizens participating in file sharing. ‘Bulk’ suing could also save a heck of a lot of paper shuffling and administration work.

The MPAA sued groups of “Does” (John Doe) identified by numerical IP address and requested the discovery of names from the users’ Internet Service Providers (ISPs). However, Judge William Alsup ruled that because claims against the 12 defendants were unrelated, suing them together into one big case was improper. “Such joinder may be an attempt to circumvent the filing fees by grouping defendants into arbitrarily-joined actions but it could nonetheless appear improper under Rule 20,” the order states.

The Electronic Frontier Foundation (EFF) has filed friend-of-the-court briefs, objecting to similar misjoinder in many of the cases filed by the Recording Industry Association of America (RIAA) against alleged infringers.

“This decision helps to give due process rights to the Internet users accused of infringement,” said EFF Staff Attorney Wendy Seltzer. “Lumping them together makes it more difficult for everyone to defend against these claims.” EFF is also concerned about the movie studios’ failure to produce evidence of infringement against even Doe #1 in this case.

In a separate case, Warner Brothers Entertainment has secured a $309,600 judgement against an actor for allegedly making promotional ‘screener’ copies of ‘The Last Samurai’ and ‘Mystic River’ available for bootleg DVD copying and unauthorised Internet trading.

Carmine Caridi, a former recurring actor on ‘NYPD Blue,’ is accused of copyright infringement and is facing a default judgement of $150,000 per film and $9,600 in attorney fees. Caridi and co-defendant Russell Sprague were caught because the screeners were individually watermarked for each recipient.

According to Warner Brothers, Carmine Caridi, as a member of the Academy of Motion Picture Arts & Sciences, signed an agreement before he received the 2003 awards season screeners promising not to circulate them. It is believed that he immediately sent the VHS screeners to another address where they were copied onto DVD and converted to digital files that were posted on the Internet.

Thomson: ContentGuard and Verisign deals

Paris-based Thomson have been busy. They’ve done two deals that will have an impact.They have become a strategic investor in ContentGuard, a closely-held developer of Digital Rights Management (DRM) intellectual property. With this investment, Thomson enters into a partnership with current investors Microsoft and Time Warner Inc.

Digital Rights Management describes a wide range of technologies that have been developed to allow movies, music and other digital content to be accessed by consumers over the Internet while protecting that content from unauthorised copying and counterfeiting – a technology championed by Microsoft and its Windows Media Player software.

Thomson has agreed to purchase an aggregate 33 per cent voting stake in ContentGuard from Microsoft, Time Warner and Xerox, subject to customary closing conditions and regulatory approvals. The announcement follows Time Warner’s April 2004 purchase of most of Xerox’s stake in ContentGuard.

The three companies (Microsoft, Time Warner and Thomson) are using the announcement to promote the development of inter-operable DRM systems, accelerate the deployment of consumer devices that support Digital Rights Management, and encourage content owners to launch new distribution channels.

The move is also interesting because Thomson is a long-standing technology and services provider to content owners and network operators, thus bringing a unique perspective that should complement the interests of ContentGuard and its co-investors. Thomson also has a lot of experience in IP licensing, which should further help to support ContentGuard’s licensing activities and accelerate and broaden the acceptance of DRM and ContentGuard’s intellectual property.

“The development of Web services and new content distribution systems requires a complete ecosystem of participants. Thomson’s investment alongside Time Warner and Microsoft shows that media, software, devices and services companies are committed to developing the infrastructure for Web services to flourish”, said Bill Gates, chairman and chief software architect, Microsoft. “This partnership will help propel the licensing of DRM intellectual property. With the participation of Thomson, a recognised leader in IP licensing, we add a European headquartered partner that will make this important technology more accessible in other parts of the ecosystem, particularly services and devices.”

“Today’s announcement marks yet another important step in our work on DRM, and expands our collaboration with key partners on this strategic initiative,” said Ron Grant, senior vice president at Time Warner. “We look forward to working with Thomson, Microsoft and others on offering consumers exciting new digital media products and services while simultaneously protecting content.”

In another move, Thomson and VeriSign have joined forces to create an authentication and authorisation service for movies, music and games delivered over digital networks. The new service, which will likely debut next summer, will be used to process secure transactions and for other back-office functions. It is geared at the subscriber digital entertainment market over broadband networks, which is a fast growing industry.

VeriSign’s Internet transaction authentication and network infrastructure technologies will be used, while Thomson will capitalise on its experience in content security, management and distribution. Both companies also plan to develop proprietary technologies to authenticate and authorise digital content and to build an interface for home networking devices such as video recorders, mobile devices and computers. These features could help protect movies and other content from piracy.

Thomson
ContentGuard
VeriSign

FCC Approves First Software-Defined Radio (SDR)

The US Federal Communications Commission (FCC) has announced its approval of the first software-defined radio (SDR) device allowed in the United States. The new equipment will allow users to share limited airspace, increase flexibility, and reduce interference concerns. In a move that may prove to be a radio technology revolution, the industry is now beset with pioneering work to find more creative and efficient use of airwaves in order to offer benefits to consumers.

Software-defined radio, sometimes shortened to software radio (SR), refers to wireless communication in which the transmitter modulation is generated or defined by a computer, and the receiver uses a computer to recover the signal intelligence. To select the desired modulation type, the proper programs must be run by microcomputers that control the transmitter and receiver.

However, the most significant asset of SDR is versatility. For instance, wireless systems employ protocols that vary from one service to another – even in the same type of service – whereas a single SDR set with an all-inclusive software repertoire can be used in any mode, anywhere in the world. Software defined radios can change the frequency range, modulation type or output power of a radio device without making changes to hardware components. This programmable capacity permits radios to be highly adaptable to changing needs, protocols and environments.

The ultimate goal of SDR is to provide a single radio transceiver capable of playing the roles of the cordless telephone, mobile phone, wireless fax, wireless e-mail system, pager, wireless videoconferencing unit, wireless Web browser, Global Positioning System (GPS) unit, and other functions, operable from any location.

The FCC’s approval gives the go-ahead to Vanu, a software development company, for a cellular base station transmitter. Vanu’s Radio GSM Base Station, which is based on a HP ProLiant server running Linux coupled with ADC Telecommunications’ Digivance radio subsystem, can support multiple cellular technologies and frequencies at the same time and can be modified in the future without any hardware changes. The technology has the potential to lower costs and provide new flexibility in wireless networks, thereby changing the entire cost structure over time. The first users will be military and public safety officials.

FCC

MPAA to pursue film file-sharers

The Motion Picture Association of America (MPAA) announced it would follow in the footsteps of the recording industry and legally pursue people who swap pirated copies of films over the Internet.

Dan Glickman, head of the MPAA, said legal action would be taken against “hundreds of people” seeking damages of up to $30,000 (~€23,000, ~£16,000) per shared film.

“This was not an easy decision, but it must be done now before illegal online file-sharing of movies spins out of control,” said Glickman. “Illegal movie trafficking represents the greatest threat to the economic basis of movie-making in its 110-year history.”

The crackdown will target individuals who deal in illegally copied cinema products on file-swapping networks, as well as the pirates themselves.

The MPAA claims the US film industry loses more than $3bn (~€2.3Bn, ~£1.6bn) every year in potential global revenue because of piracy. But Glickman said the figure did not take into account the losses from thousands of illegal online downloads that were swapped every day.

The MPAA draws particular attention to the popular file-sharing application, BitTorrent. Written by Bram Cohen, which is designed to offer the files as fragments for faster, easier transfer from peer-to-peer (P2P). One destination website for Bit Torrent fans, Suprnova.org, offers users free downloads of thousands of movies, TV shows, music, software and games files. The site is run on donations and some website advertising.

A parallel initiative sees the MPAA hoping that new software will encourage parents to identify their children as “file-sharing felons”. The software, designed to identify and removal of potentially infringing material and P2P applications on the PC, is part of the MPAA’s war on file sharing and will be released for free by the MPAA at a later date.

Online music file sharing is measured in billions of files downloaded, but the MPAA says that under 150,000 movie titles are traded each day in the US on file sharing services.

MPAA
www.suprnova.org

AtomFilms And CustomFlix: DVD compilation service

When I first used CDuctive in 1998, I was hugely excited. Using a Web browser, you could preview and select music tracks from different artists, pick the order of the tracks, pay for it and have it posted to you. The disks would arrive a short while later with a professionally printed cover, listing the selected tracks. I was so impressed with the idea, I thought the service was worth investing in.

These days the idea doesn’t seem that revolutionary. Indeed it appears a little old-fashioned, having been outdated by music downloads.

Today, AtomFilms and CustomFlix are announcing that they’ve got together to offer the video equivalent – DVD compilations of short films. Using CustomFlix’s Build-Your-Own DVD™ service (isn’t it amazing what you can trade mark these days), purchasers are able to choose up to 10 pieces, initially from a selection of 125 of AtomFilms’ shorts. There are a couple of limits – there cannot be more than a total of 90 minutes of footage onto one DVD and each video clip can be up to a maximum of 30 minutes long. In the same way that CDuctive worked, the disc’s content and packaging reflects the selected films. The disc then arrives in the post.

It’s a good idea, a DVD duplication service combined with a content company, opening the market to those who don’t have sufficient bandwidth to view films online. Posting DVD’s is a very efficient method of bandwidth delivery. 4.7Gb of data transfer costs a lot more than the price of an envelope and a stamp.

They label it a “major step forward in the distribution of on-demand”, which is stretching the concept of on-demand a little – with that logic anything you buy or rent is now on-demand.

After a quick look, it is encouraging to see that it looks like the service is deliverable outside the US. An advantage, I assume, of the contracts signed by AtomFilms for the original material being delivered via the Internet – by definition they are likely to have global distribution rights.

What is not clear is why there are only 125 films initially offered. Is it that Atom doesn’t have rights to physically distribute the other material or perhaps the material isn’t held, or even available in DVD quality?

It’s hardly worth mentioning because it’s too obvious, but clearly when broad-broadband is universal, online distribution will significantly reduce the demand for services like this. We’re not there yet, and clearly many parts of the world are far from close to that, so this service does have the ability to last a while.

There are advantages of buying it on DVD, over the future online delivery methods. The purchaser will own the DVDs content, free to play it on the device of their choosing and it will be DVD resolution, not a version compressed for download. If you go looking for CDuctive, I’m sad to see that it looks like it faded away – but that was six years ago.

CustomFlix
Atomfilms

European Music Rights: Hearing Today – Latest

It’s been clear that retailing Digital Music in Europe has been a lot more complex to organise than in the US. Witness the slower rollout of European music services – EU challenges EU-wide music royalty structure).

The collecting societies will be fighting their corner today at the hearing in Brussels. All involved hope this should go towards clarify the situation.

Failure to fix clear, fair rules for online music licensing has “been the main obstacle in Europe” blocking faster development of online music services, said Lucy Cronin, executive director of the European Digital Media Association. Quoted from the IHT as they covered the build up

Latest News 13:00 update

The run of the events so far. First thing this morning the commission presented its objection and the collecting societies presented their disagreements. This was followed by Q&A session lead by the Commission when one of the issues re-examined was cross board monitoring.

When we asked for an instant reaction to the situation, Lucy Cronin told Digital-Lifestyles “By lunchtime it doesn’t appear that the Commission are being swayed by the collecting societies arguments.”

This afternoon the Interested Parties will have an opportunity to present.

Following this hearing, the wheels of the Commission continue to turn. A report will be circulated for internal consultation. It is expected that it will be a couple of months until the EU ruling will be publicly announced.

European Digital Media Association