Mistrust-Based Digital Rights Management

INTRODUCTION ....................................................................................... 48 I. WHY DIGITAL RIGHTS MANAGEMENT? .............................................. 51 A. Copy-Control DRM .................................................................. 51 B. Bundled Uses and Per-Use Pricing .......................................... 52 C. Patent-Royalty Collection ........................................................ 53 D. DRM and Shaping Competition ............................................... 54 II. THE PROBLEM OF THE CD: SONY BMG AND ADD-ON DRM ............ 55 A. Staring at the Jewel Box: Neil Diamond’s 12 Songs. ............... 56 B. Inside XCP and MediaMax....................................................... 57 C. Four Problems for Add-On DRM............................................. 60 III. IDENTITY-BASED DRM: SWITCHING FROM PRODUCTS TO SERVICES .......................................................................................... 62 A. Google Video ............................................................................ 63 B. Amazon Upgrade ...................................................................... 65 C. iTunes ....................................................................................... 66 D. Implementing Identity-Based DRM .......................................... 68 CONCLUSION........................................................................................... 70