a telecom operator’s view presentation by domenico di martino telecom italia - group coordination...
TRANSCRIPT
A TELECOM OPERATOR’S VIEW
Presentation by Domenico Di Martino Telecom Italia - Group Coordination for IPR and Contents
DMP workshop on Analogue Legacies in the Digital AgeBarcelona, October 25, 2004
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INDEX
TELECOM OPERATORS ARE ENTERING NEW AREAS OF BUSINESS
TRENDS IN DIGITAL COMMUNICATION
ON-LINE AND OFF-LINE ACCESS TO CONTENT
FROM CENTRALIZED ON-LINE DISTRIBUTION TO SUPERDISTRIBUTION
SIZE OF THE CONTENT CONSUMER MARKET
CHANGING ROLES IN THE ELECTRONIC COMMUNICATIONS SECTOR
WHAT DOES A TLC OPERATOR NEED MOST?
CONVERGENCE AND CONTENTS
IPR: A TLC OPERATOR’S PERSPECTIVE
FILE SHARING: MICROSOFT’S PERSPECTIVE
WHAT SHOULD A DRM SYSTEM DO
DRM: TELECOM ITALIA’S POSITION
PRIVATE-COPYING LEVIES AND DRM
COLLECTING SOCIETIES
DRM TECHNOLOGY AND DOUBLE COMPENSATION
DRM SYSTEMS AND EXCEPTIONS
NO PER-BIT LEVY MUST BE IMPOSED
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TLC OPERATORS ENTER NEW AREAS OF BUSINESS
Source: EITO
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TRENDS IN DIGITAL COMMUNICATION
WIRELESS technologies may become as important as wireline technologies (3G, 4G, …;WiFi, WiMax)
BROADBAND INTERNET is being brought back into the fold of the main telecommunication business (first Wanadoo, now T-Online)
VoIP may be coming to every communication network, from broadband telecommunication (wireline and wireless) to broadcasting. Different business models are emerging (Alice Mia)
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DIGITAL CONVERGENCE between ICTs, Consumer Electronics and media is taking the shape of a personal digital world, where multi-channel interoperability guarantees the end-user centrality (personal/home server – car infomobility)
A key element of the marketplace is the increasing demand for global MOBILITY and NOMADISM as these become norms from the consumer point of view and the real“user choice”
TRENDS IN DIGITAL COMMUNICATION
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ON-LINE AND OFF-LINE ACCESS TO CONTENT
Off-line access to contents:
Disk players (CD, DVD)
Memory storage players (iPod, portable video/music player)
On-line access to contents:
Wireline - broadband PC, Internet Media Centers
Point-to-point wireless - mobile access
Multicast/broadcast - digital TV (sat, DTT, cable, DSL)
Direct-to-Internet devices / services
PDA/Player/Camera/Wi-Fi/GSM combos
Internet-based personal remote media portals (Orb)
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CENTRALIZED ON-LINE DISTRIBUTION TO SUPERDISTRIBUTION
DRM
DRMDRM
DRM
DRM
DRM DRM
DRM
DRM
DRM
DRM
DRM
DRM
DRM
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SIZE OF THE CONTENT CONSUMER MARKET - EUROPE
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Conte
nt Pro
vider
Provi
der of
Pay
men
t
serv
ices
TLC Operator
Provider of Enabling
Technologies
ENDUSER
SERVICES
Connection / access
Management of conditional access
Security / control
Content production
Content aggregation, packaging and distribution
Rights management
Content protection
Management of billing and payment services
Service
Servi
ce
Servi
ce
Service
CHANGING ROLES IN THE ELECTRONIC COMMUNICATIONS SECTOR
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Content P
rovi
der
Provi
der o
f Pay
men
t
serv
ices
Provider of Enabling
Technologies
SERVICES
Connection / access
Management of conditional access
Security / control
Content production
Content aggregation, packaging and distribution
Rights management
Content protection
Management of billing and payment services
TLC Operator
ENDUSER
Service
Service
Service
Service
CHANGING ROLES IN THE ELECTRONIC COMMUNICATIONS SECTOR
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WHAT DOES A TLC OPERATOR NEED MOST?
INTEROPERABILITY
Networks, accesses, terminals must be interoperable
SECURITY
EASY OF USE
CERTAINTY OF LAWS AND REGULATIONS
BUT WHAT A TLC OPERATOR ENTERING A NEW BUSINESS BASED ON QUALITY CONTENT IS…
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ON-LINECONTENT
WHAT DOES A TLC OPERATOR NEED MOST?
music content
video content
games
publishing
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CONVERGENCE AND CONTENTS
If Networks and services are converging, whereto are they converging?
The point of convergence is the End User / Service and Content Consumer (SCC): a person, not a physical place.
Delivery media may change but contents must stay the same.
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Contents may vary, but are they equally available on all media, on all platforms? In the future, maybe; today, not yet.
License conditions for the distribution of content are different over different delivery platforms.
This goes against the principle of technological neutrality and against the the economic convenience of selling contents to as many different media.
If such discrimination exist, then content owners and right holders may represent the weakest link in the process of development of on-line content.
CONVERGENCE AND CONTENTS
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“As with all developments in communications, people are not interested in the new networks themselves, but in what the new networks make possible. This means that one concern of competition authorities should be to ensure that media content can be provided over new networks and not just the traditional ones. I am not only thinking about the new 3G mobile networks but also broadband DSL and cable connections to the Internet.”
Mario Monti European Commissioner for Competition Policy: Access to content and the development of competition in the New Media market- the Commission’s approach (8 July 2004)
CONVERGENCE AND CONTENTS: SPORT
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“[For] The growth of new media and of mobile Internet […] it is equally crucial to ensure access to attractive content, such as rights to premium sport events. […] This point is common to broadband internet services as well. […] Some content, such as rights to top international and national football, play a crucial role, and are “must-have” elements to build up an attractive offer. […]
One should look at the attitude and behaviour of those players who control the most attractive content. I refer, here, mainly to content owners, but also to content aggregators and, last but not least, to those content providers (mainly incumbent free to air or pay-TV broadcasters) which acquire rights for delivery of content over technological platforms different to those on which they are active. […]
Our review, which focuses on the availability of rights to major sport events, notably football, has so far shown a generally negative attitude by the relevant players towards making premium content available for delivery over platforms different from the traditional ones.”
Mario Monti: Access to content and the development of competition in the New Media market- the Commission’s approach (8 July 2004)
CONVERGENCE AND CONTENTS: SPORT
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La Commission européenne s'intéresse aux nouveaux médias numériques. Les services de la concurrence de Mario Monti vont enquêter sur les modalités de vente des droits sportifs, mais aussi de la musique et du cinéma sur les nouveaux supports comme les téléphones de troisième génération ou Internet. Bruxelles souhaite en effet comprendre si ce nouveau marché de droits répond bien aux exigences de libre concurrence en vigueur au sein de l'Union.La Commission craint que les droits pour les réseaux UMTS notamment ne soient bloqués ou regroupés avec les droits destinés aux télévisions. Un comportement suspect, que les chaînes ont adopté afin de protéger leurs offres de programmes. Il s'agit pour ces dernières de neutraliser l'arrivée des contenus prémium que sont le football, la musique ou le cinéma, sur les terminaux mobiles ou chez les fournisseur d'accès à Internet. Avec, en fin de compte, comme perspective la possibilité de retarder l'émergence de ces nouveaux médias le plus longtemps possible. Les diffuseurs auraient aussi pour habitude, souligne la commission, de faire des offres d'achat comprenant une clause d'exclusivité sur ces droits dédiés aux nouveaux médias, toujours pour mieux les étouffer. Les services du commissaires Mario Monti précise d'ailleurs que «la Commission a rencontré certaines de ces pratiques dans le domaine du football lorsqu'elle s'est occupée récemment de la vente des droits médiatiques sur la Ligue européenne des champions et de la vente des droits des premières ligues anglaises et allemandes».Des questionnaires ont été envoyés dès le mois de janvier à ce sujet aux fédérations et aux clubs de football. Une nouvelle vague de questions devrait être bientôt adressée aux différentes instances du football en Europe mais aussi aux acteurs du monde de la musique et du cinéma. Bruxelles espère ainsi obtenir un état des lieux de ces nouveaux marchés médiatiques.
Le Figaro – «EUROPE Le sport, la musique et le cinéma négocient leur exclusivité sur le Net et le téléphone UMTS : Bruxelles redoute la guerre des droits », 10 juillet 2004
CONVERGENCE AND CONTENTS: MOVIES
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IPR: A TLC OPERATOR’S PERSPECTIVE
When digitalized content is circulated on-line and off-line, its copyright and associated rights must be adequately protected.
A consumer’s right to make legitimate private copies of audiovisual contents must be protected. It cannot be negated by DRM systems or by Technological Protection Measures.
An Internet Service Provider’s liability for copyright infringement by its on-line customers is regulated by the e-Commerce Directive (mere conduit, caching, hosting and general surveillance obligations).
A Service Provider can only follow “Notice and Takedown” procedures imposed by the authorities.
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All illicit file-sharing carried out on a commercial-scale on peer-to-peer networks must be prosecuted by law.
But file sharing (peer-to-peer) must not be equated with piracy.
Peer-to-peer technology is at the core of new network services and of the business model for transaction at the margins of network (superdistribution). It must not be made difficult or impossible to deploy and use.
Intellectual Property Rights, once their protection is assured, must not be used as an anti-competitive tool to negate access to content for the new media platforms. All other things being equal, the principle of technological neutrality must be preserved.
IPR: A TLC OPERATOR’S PERSPECTIVE
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FILE SHARING: MICROSOFT’S PERSPECTIVE
“File and Printer Sharing for Microsoft Networks
The File and Printer Sharing for Microsoft Networks component allows other computers on a network to access resources on your computer by using a Microsoft network.The component is installed and enabled by default. It is enabled per connection using TCP/IP and is necessary to share local folders.The File and Printer Sharing for Microsoft Networks component is the equivalent of the Server service in Windows NT 4.0.”
HELP AND SUPPORT CENTER – WINDOW XP PROFESSIONAL
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WHAT SHOULD A DRM SYSTEM DO
To facilitate the legal access of end users to protected content DRM systems enable the distribution and sale of digitalized audiovisual content, both on-line and off-line.
From the conceptual point of view, DRM systems do two different things:
a)DRM systems enact the contractual conditions at which customers buy audiovisual content from content owners.b)They can also enact the local law provisions for the protection of copyright and associated rights.
Logically distinct from these functions, Technological Protection Measures are often incorporated in DRM systems to physically enforce such contractual and law conditions.
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The Telecom Italia Group sees DRM systems as facilitators of the legal access of to protected content and thus essential enablers of the distribution and sale of digitalized audiovisual content, both on-line and off-line.
Digital management of rights should be carried out through Digital Rights Management systems that are easy to use, that are interoperable, that are based as much as possible on open standards and that convey transparent and easily understandable information on managed rights.
DRM: TELECOM ITALIA’S POSITION
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PRIVATE-COPYING LEVIES AND DRM
Considerable attention in Europe has focused on the relationship between private-copying levies and implementation of DRM technologies.
The historical justification for these levies is to compensate rights holders for the private copying of their works that is not specifically authorized and for which no direct remuneration mechanism is available.
In this light, the copyright laws of many Member States of the European Union provide for levies on recording devices and/or media onto which copies are fixated.
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COLLECTING SOCIETIES
Collective management of rights in Europe is still carried out through geographical monopolies.
Also, there exists also a substantial lack of competition between national dominant collecting societies.
This was justified in an off-line environment but on-line technologies make this market restriction no longer useful.
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DRM TECHNOLOGY AND DOUBLE COMPENSATION
The Copyright Directive [Article 5(2)(b), Copyright Directive] specifically notes that with respect to non-commercial private copying, Member States shall provide for exceptions to copyright, that is: the right to authorize or prohibit copies, “on condition that the right holders receive fair compensation which takes account of the application or non-application of technological measures.”
It is recognized, therefore, that the application of DRMs will affect whether rights holders obtain “fair compensation.”
To the extent that private-copying levies are imposed on devices and media, it has been pointed out by consumers and by the technology industry that allowing rights holders to obtain additional compensation through use of a DRM technology might result in double compensation that exceeds what is “fair.”
So, with the general adoption of DRM systems, the question seems to be an either-or issue: DRM OR LEVIES?. This is not yet the case, but close attention should be paid to this issue.
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DRM SYSTEMS AND EXCEPTIONS
There is an uneasy fit between the technological/commercial capabilities of DRMs and the legal and policy outcomes (as reflected in lawful exceptions and limitations).
Whether DRMs and the associated legal protections will adequately accommodate legitimate exceptions and limitations including in national copyright laws will become clearer as those systems are implemented and the market reacts to laws and contracts.
However, should DRM solutions fail to fully accommodate private copying, the Copyright Directive allows Member States to intervene directly to ensure that the practices allowed under copyright exceptions are not prevented by technological measures.
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NO PER-BIT LEVY MUST BE IMPOSED
Until the day DRM systems will enable direct remuneration of right holders for private copying, there must continue to exist levies that compensate for the inability of rights holders to collect their dues for private copies. In the meanwhile, double compensation must be avoided.
Levy compensation must continue to apply only to the act of fixation of copies, not to the distribution channels in themselves. This principle must also apply to new modes of transmission, including ADSL or mobile networks channels.
No per-bit levy should be imposed on the data traffic of new media communication operators.
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BACKGROUND
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Broadband penetration in Europe - Households
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Digital TV penetration in Europe - Households
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WESTERN EUROPE