Creative Archive Gathers English MP support

The Culture, Media and Sport Committee of the UK House of Commons today released the first volume of its report, “A public BBC.” The committee, made up of eleven cross party Members of Parliament (MP), has taken evidence both written and through expert witness panels going back as far as May 2004.

The 87-page tome contains a lot of interesting and insightful comments from the MPs which are going to take a while to digest. One of the manageable chunks is on the Creative Archive and being long term supporters of it, it drew our eye.

The support from the MPs appears strong, but there’s few items that cause us confusion bordering on concern like the executive summary

7. We strongly welcome the BBC’s proposals for a Creative Archive, and agree that access to this should be free for non-commercial applications. We look to the Corporation to develop, in cooperation with intellectual property owners, innovative solutions that appropriately balance the interests of rights holders with those of the wider public. Digital rights management is a key issue in the modern media environment, and we recommend the DCMS establish a forum for assessing its implications.

We’re slightly confused as to why Digital Rights Management (DRM) is being mentioned in the same paragraph as the Creative Archive. Are these separate items that have just been mentioned in the same paragraph or is their suggestion that the Creative Archive material has DRM applied to it? One of the central ideals of the Creative Archive is the ability for the UK public to load the downloaded content into their video editing packages and create new content. How is this to be achieved if DRM is applied to the content?

Much of this may become clearer when the BBC starts a trial of the Creative Archive in January 2005 as re-announced on 24.Nov.04 by Mark Thompson, Director-General, BBC.

We’re going to be doing some more digging tomorrow to try and get some clarity on this.

Details of material about the Creative Archive

62. In Building public value, the BBC commits to launching a Creative Archive, providing “free access to BBC content for learning, for creativity, for pleasure.” The BBC’s ambition is that, starting with factual material, online access for non-commercial applications will eventually extend across all areas of its output.

63. The Electronic Frontier Foundation espouses the benefits that will accompany the establishment of the BBC’s Creative Archive, and supports its becoming a core element of BBC services. Ultimately, this could comprise the whole of the BBC’s extant archive of radio and television programming, placed online under a licence that permits non-commercial distribution and re-use of this material by “remixers”. This open licensing system is similar to that deployed by the Creative Commons initiative, a system of “some rights reserved” copyright. And it is possible that, by enabling non-commercial exploitation, there is created “a gigantic and clever series of advertisements for the commercial rights” associated with the works.

64. The Creative Archive brings to the fore what Professor John Naughton termed the “maniacal obsession” with intellectual property. In his view, the copyright industries “see digital technology as an unprecedented opportunity to extend control over how copyrighted material can be used to a degree that was inconceivable in an analogue world.”

65. In written evidence, the Music Business Forum expressed concerns that such initiatives should not be allowed to “ride rough shod over the copyrights and performers’ rights of those who contribute to BBC programmes”. There had to be provision for rights holders to be paid for the additional use of their work through access to archives. This should be the case whether in the form of repeat broadcasting fees, extensions of the collective bargaining agreements in place for the payments of revenue for secondary uses, or through the negotiation of clearance for the right to exercise new rights on individually negotiated commercial terms. The BBC ought to consider the case for the implementation of encryption and digital rights management applications in order to counter growing piracy – whether via internet or personal video recorder downloads. The MBF is concerned that while this is available free and unpoliced, commercial download services will be unable to compete and artists, writers and the other creators will have no means of getting paid. “The BBC, as a publicly-funded organisation, has a responsibility to be seen at every opportunity to be upholding the systems of rights that operate in the UK, not least to act as an example to others. The licence fee does not of itself authorise licence fee holders to the free use of BBC output in whatever way they wish.”

66. We strongly welcome the BBC’s proposals for a Creative Archive, and agree that access to this should be free for non-commercial applications. We look to the Corporation to develop, in cooperation with intellectual property owners, innovative solutions that appropriately balance the interests of rights holders with those of the wider public. Digital rights management is a key issue in the modern media environment, and we recommend the DCMS establish a forum for assessing its implications.

Culture, Media and Sport Committee report, “A public BBC”

European Networked and Electronic Media (NEM) initiative launches

How Europeans receive their digital entertainment in the future could change, following an event in Nice last week. At the launch of the bold and ambitious Networked and Electronic Media (NEM) initiative, the European Commission (EC) announced their intention to form an integrated, interoperable platform. Its broad scope stretches from the way media is created, through each of the stages of its distribution, to its playback.

The EC want its citizens to be able to locate the content they desire and have it delivered seamlessly, when on the move, at home or at work, no matter who supplies the devices, network, content, or content protection scheme.

With interconnectivity as its goal, it is fortunate that over 120 experts were there to share the vision and hear pledges of active support from companies such as Nokia, Intel, Philips, Alcatel, France Telecom, Thomson and Telefonica.

It might initially appear to be surprising that companies in direct competition are keen to work together, but again and again speakers stated they could not see incompatible, stand-alone solutions working. A long-term strategy for the evolution and convergence of technologies and services would be required.

The EC is being pragmatic in its approach. They have identified that many standards bodies have, and continue to, define standards in the areas that NEM encompasses, but recognise that some of these standards overlap. The NEM approach is to take a serious look at what’s available and what’s in the pipeline, pick out the best, integrate them together and identify where the gaps are. Where it finds holes, it will develop standards to fill them.

While the global access to content is not a unique idea, what is significant is that such a large and powerful organisation has stated its desire for it to be fully open and interoperable – not restricting the consumers choice at any stage in the process.

This is bound to please, if not surprise, many individuals and user organisations who feel that the wishes of the holder of rights to content are normally considered over and above those of the consumer. Following the keynote earlier in the week of EC Director João Da Silva, they now know they have a supporter within the higher echelons of the European Commission.

Many feel that the most difficult and challenging area for the EC will be to identify a solution for interoperating Digital Rights Management (DRM) schemes. Currently DRM solutions are incompatible – locking certain types of purchased content, making them unplayable on all platforms.

With the potential of having a percentage of every media transaction that takes place globally, the prize for being the supplier of the world’s dominant DRM scheme is huge. This leads the companies who feel they have a chance in controlling it to not be very open to sharing.

Although entertainment is an obvious first step, it will encompass the remote provisions of healthcare, energy efficiency and control of the Smart Home. The over-arching initiative amalgamates the work of many currently running research projects that the EC has been funding for a number of years.

The NEM is a ten-year project, which in the everything-immediately age we live in, might seem like a lifetime away, but it’s important to remember that the digital delivery of media stretches a long way into the future. Decisions made and solutions selected now will have far reaching consequences.

This piece was featured on the BBC Web site.

BT And Blueprint Jointly Develop Innovative Music Distribution Service

In yet another move in the legitimate digital music market, BT and Blueprint have jointly developed a new service based on Blueprint’s Open Royalty Gateway (ORG) and Song Centre software that allows copyright holders to take more control of their material.

The new service for hosting, managing and distributing music and related content online, promises to accelerate the growth of the market by addressing key problems hampering the development of online music businesses, such as time to market, copyright protection, capital expenditure in IT and networking technologies, control of rights and the margin structure of the present models.

BT brings to the table IT, networking and data storage knowledge, while Blueprint offers experience in media management software and music industry relationships. Blueprint will provide the software framework and industry interface, with BT utilising its digital content hosting platform and international network to deliver a global reach.

The solution enables rights holders – artists, writers, publishers and record companies – to host their songs, videos, ringtones and other digital media files while having a direct commercial relationships with retailers. Content can be delivered directly to any number of media-enabled devices, including PCs, digital audio players and mobile phones. Of course, online-only distribution also dramatically reduces the time it takes to get digital files to market, but the system has to be successful in managing rights and digital licences, reporting royalties and sales to rights holders, and offering a wide variety of digital media to consumers using variable pricing structures.

An interesting feature of ORG is that it allows rights holders to actively manage their content, including setting business rules for pricing and location, electronic contract creation, sales tracking and royalty reporting. In addition to handling ‘major label’ music content, ORG allows independent labels and artists, many of whom control their own rights, to encode, package and upload their content to the service and then manage contracts. Blueprint will also work with retailers, letting them mix and match content to create their own offers and campaigns through a service called Song Centre.

On the other hand, the service could, however, let artists or smaller labels bypass the majors and sell their music directly to retailers or consumers. Referral and reward programmes, using viral recommendation, also means that consumers can earn back the cost of the music they purchase, by rewarding them with a commission each time one of their friends buys recommended content.
The service has already been used by EMI for Robbie Williams’ recent No.1 hit single ‘Radio’ with Australia and New Zealand’s leading music retailers, Sanity and Sounds. Audio, video, visual and mobile content was bundled together for sale, and linked into a competition utilising Blueprint’s referral and reward technology to drive additional opportunities to win prizes. The service is now powering the global Robbie Williams ‘Greatest Hits’ digital download store.

Blueprint
BT

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

Apple Avoids French Courts Opening FairPlay DRM

VirginMega, a joint venture between Virgin France and local media company Lagardère, has failed in its legal attempt to get Apple to license it DRM technology.

VirginMega claims that Apple’s refusal to license its FairPlay technology – the Digital Rights Management (DRM) system that allows songs from the iTunes store to be played only on iPods – is hampering the expansion of its digital music download market. The retailers complaint was ruled to be short on convincing evidence, according to the French Competition Council.

The problem, as VirginMega sees it, is that as its own online music service uses Microsoft’s audio files format (WMA) and is protected by Microsoft’s DRM technology, it isn’t supported by Apple’s iPod digital audio player. Since Apple won’t build WMA compatibility into the iPod, and as the iPod is the number one digital audio player worldwide, VirginMega is obviously miffed. Virgin wants Apple to licence FairPlay so it can incorporate the technology into the tracks it sells, thus making them iPod-compatible. The lack of compatibility between rival music services and players will certainly put VirginMega at a ‘disadvantage’, so it’ll have to look elsewhere to improve its sales to WMA-compatible devices.

Clearly Apple isn’t keen to share. Some feel that Apple may have shot itself in the foot here, as wider content support for FairPlay could help to drive the sale of iPods. By establishing AAC and the FairPlay DRM as a standards, more iPods would be sold and other standards, like WMA, would possibly be left by the wayside. Conversely if other music sites started using FairPlay, Apple would lose the relationship with the music purchaser.