leonardo chiariglione @ ebook lab italia 2011 - micro payments for an ebook marketplace

Micro payments for an ebook marketplace

Leonardo Chiariglione – CEDEO.net Ebook Lab Italia, Rimini, 2011/03/03

Why an ebook is different from a book?

�  An ebook is made of bits and not atoms

�  Making an ebook is �  Easy because you can shrink – if you want – the

elements of a value chain to one �  Difficult if you want to harvest the opportunities

offered by the digital form

�  Pricing an ebook is �  Easy because it is a new product �  Difficult because there are no rules

2011/03/03 2 Micro payments for an ebook marketplace

It is not the first time a media type goes digital

�  Audio �  Vinyl – Cassette – CD – MP3

�  Radio �  AM – FM – DAB et al. – Internet Radio

�  Video �  Cassette – DVD – BluRay – DivX – Online services

�  TV �  Many analogue formats – Various CAS – Online

services

3 Micro payments for an ebook marketplace 2011/03/03

What about ebooks? �  Books used to have a single analogue format ;-)

�  Ebooks come in many distribution formats on top of widely adopted clear text formats

�  “Ownership” of a distribution format – i.e. the consumption device – is deemed to be important

�  Is this the best way to cater to the development of an infant industry?

�  If the history of media on the internet is any guide…


The Italian connection… �  The no-profit group “Digital Media in

Italia” (dmin.it) proposes to maximise the profitable flow of digital media �  Per give Italy to acquire a primary role in the exploitation

of the globale “digital media” phenomenon �  Acting on the offer/access to

�  Content �  Broadband networks �  Pay/cash services

�  Harmonising the requirements of �  Authors: freedom to offer their works �  Intermediaries: freedom to choose a role �  Consumers: freedom to access content of their choice


Driversof dmin.it proposal �  Standards are great enablers of business

opportunities �  If the role of value chain players is duly remunerated

�  Italy is too small a country to allow a competition of technologies �  Are we really interested in a competition of big

external players on our skin?

�  Dmin.it �  Defines a set of basic mandatory technologies �  Leaving operators the freedom to use other

technologies


Key technology #1 – format �  Dmin.it chooses the MPEG-21 format, an ISO/IEC

standard for interoperable management and protection of digital assets

�  Key features of the MP21 format �  Content packaging format �  Content identification �  Content management and protection

�  Rights expression language �  Contract expression language

�  And many more…


The word from WIPO/1 �  In order to effect a change in attitude, I believe that

we need to re-formulate the question that most people see or hear about copyright and the Internet. People do not respond to being called pirates. Indeed, some, as we have seen, even make a pride of it.

�  The history of the confrontation of our classical copyright world with the digital environment has been more a sorry tale of Luddite resistance than an example of intelligent engagement.


The word from WIPO/2 �  Future generations are clearly going to regard many

of the works, rights and business agents that we talk about as cute artefacts of cultural history, much as the vinyl record has become in a very short space of time.

Francis Gurry, Director General of WIPO - World Intellectual Property Organization


Key technology #2 – access

�  I won’t talk about it this time L


Key technology #3 – pay/cash

�  To do business with digital media we need �  A low entry level and distributed technology

�  To enable anybody to perform payment and cashing operations

�  Especially when micro amounts are involved

�  We need to implement the following steps 1.  Define a set of protocols 2.  Standardise the protocols 3.  Implement systems based on standard protocols

4.  Deploy systems based on standard protocols


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Step 1: define a set of protocols

Value Chain User 1 (e.g. Seller)

Value Chain User 2 (e.g. Buyer)

Virtual Account Service Provider 1

Virtual Account Service Provider 2

Bank account

Credit card

Prepaid card

Payment with units

Negotiation of content with payment data

Negotiation of ntwk resources with payment data

Acct11

Acct12

Acct1n

Acct21

Acct22

Acct2m Shared Services

Bank account

Utility bill

Electronic purse

Micro payments for an ebook marketplace 2011/03/03

Seller Buyer

Create Licence SP

Seller’s Payment and Cashing SP

Buyer’s Payment and Cashing SP

Repute User SP

Step 2: standardise protocols/1

13 13


Owner (e.g. Seller)

Participant (e.g. Buyer)

Create Licence SP

Payment and Cashing Interface

Seller’s Payment & Cashing SP

Buyer’s Payment & Cashing SP

Nego=a=on Interface

Negotiate Licence SP

Step 2: standardise protocols/2

Web, IP and Mobile TV (http://wim.tv/)

Step 3: implement systems based on standard protocols


The wim.tv ecosystem

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Content

Content providers

Metadata

Expected $

Advertisers

Agents

engine & repository

Web TV 1

End users

Web TV 2

Syndicators

ecosystem


Step 4: Deploy systems based on standard

protocols �  The Payment Services Directive (PSD, 2007/64/EC)

�  Regulates payment services, providers and users in Europe

�  Provides for the necessary legal framework within which all payment service providers operate

�  Aims at increasing pan-European competition and participation in the payments industry

�  Electronic Money Institutions (EMI) and Payment Institutions (PI) can provide payment services

�  A PI can take the role of VASP


An ebook marketplace Books or chapters

Final product

End users

Basic Elements


To know more

http://www.dmin.it /

http://mpeg.chiariglione.org

http://wim.tv/ 19 Micro payments for an ebook marketplace 2011/03/03

leonardo chiariglione @ ebook lab italia 2011 - micro payments for an ebook marketplace

Technology

micro payments

digital media

payment

payment

seller

time

role

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