Scott A. Partridge

Copyrights are granted to protect an expression or form of an idea(s), such as a book, song or film (Price Waterhouse 1998). These are issued to the creator of a work and grant rights to authorize reproduction and distribution of reproductions. With the development and increased usage of digital content, it is imperative to develop complementary technologies to stop piracy. The success of entire industries depends on the ability to protect these copyrights, which help to control the dissemination of copyrighted information. Digital technology is being used to solve the copyright challenges the technology itself has created. Along with this, international governments must band together and enforce effective legislation against theft of digital assets.

Digital technologies are expected to provide content owners with better protection than what is now available in the analog world. Copyright protection for digital content can be grouped into two general areas: software strategies and marking technologies. Certain sales and marketing strategies are used to limit the desire to duplicate copyrighted materials, such as releasing limited versions of completed works for review coupled with secure purchasing capabilities for the entire documents. By having frequent information updates, each refresh of information causes the previous version to be worth less. Pricing strategies can also help limit piracy; by keeping the retail value low on certain materials, the value gained by pirates will be less, limiting their desire to steal the materials. Specifically for Digital AudioTape (DAT) digital recorders are now manufactured with serial copy management system (SCMS). Here a chip is installed which recognizes the serial markings and distinguishes whether a tape is protected by copyright. If found to be copyrighted, playback will be inhibited thus stopping copying.

Marking technologies do add complexity to the piracy process, but more directly seek to allow for legal authorization before accessing the materials. These markings can be visible or not and ensure proper identification of the owner. Fingerprinting details the receiver(s) of the information and data hiding imbeds information about the digital object in the content itself. By encrypting content, unlockable only by a combination of keys located in the hardware and issued by the copyright holder, content distribution and use can be monitored. If a product is found, it can be reviewed by the content holder to determine whether it is a legitimate copy. Another marking technology is watermarking. These complex, yet faint images are placed on the content to identify the copyright holder. These watermarks are multi-colored images (holograms), which are difficult to replicate. Microsoft uses this technique for their software CD-ROMs (Nimbus 1998).

The biggest issue looming over the heads of all digital content holders is piracy, which was tabulated to be a $10 billion business loss of revenue to copyright holders (MPAA 1997). With piracy running rampant, content providers are less likely to release products globally, greatly inhibiting the success of some products. Markets around the world, like India, Russia or Brazil, are virtually impossible to penetrate as the black market constitutes well over 60 percent of the revenues.

In Hollywood, home entertainment companies are fighting the battle of pirates by using two types of systems to protect their digital copyrights. Content Scrambling System (CSS) encryption was developed specifically by the DVD Consortium. Encryption keys are embedded in the DVD data and playback is unscrambled if the player interprets the proper keys. If the proper match does not occur, playback is stopped and copying prohibited. An organization run by the DVD Consortium manages the number sets and issues them to DVD replicators and hardware manufacturers for synchronization.

The Motion Picture Association is the lead watchdog in the fight to limit piracy for Hollywood, including releases in all ancillary markets, such as video and television. The organization works closely with the FBI on large global copyright protection issues with fees paid by member companies. The bulk of the fees are put towards efforts to thwart global piracy.

Several companies offer systems to inhibit unauthorized duplication of copyrighted data. Digimarc uses watermarking technologies described above. A British company, HighWater Signum, offers fingerprint system which travels with the data and remains in place even if the file has been opened, edited or copied. This allows for tracking of who receives the file. IBM has developed Cryptolope Management Technology, which holds an encrypted version of a text document or electronic commodity, such as film, music or video. By use of a Cryptolope opener, the user can preview, purchase via electronic commerce unsealing of digital data.

These technologies are being implemented by content holders on all types of digital information. Hollywood studios, music companies and software companies all want to protect copyrights they control to maximize their exploitation. With the growth of electric commerce, digital assets are being sold over the Internet. Security is needed in these new business transactions.

Content holders and their loss of enormous global revenues are leading the charge to develop safe and secure distribution practices without fear of piracy. By retaining these revenues, portions of these funds would be allocated towards research and development of formats, distribution processes and copyright protection schemes.

Today’s pirates are extremely adept and require sophisticated structures to cease their illegal efforts. Digital copyright technology must be used across all markets to limit the exposure of content holders. There are still no definitive solutions to copyright protection of digital content. This has caused many artists and other content holders to not release consumer’s products for fear of losing control of the distribution process. Some providers of content will remain out of the market. This has hindered DVD’s growth as some notable content providers are preparing, but not yet ready, to provide services until there is complete protection.

It is illegal to make unauthorized copies of legitimately copyrighted material. Public policy supports this principle and standards are being worked on in the digital world to protect those copyrights. In December 1996, at Geneva, Switzerland, the WIPO (World Intellectual Property Organization) met to revise the Bern Convention. This convention, originally formulated in 1886, to attempt to protect international property rights (IPR) holders. The focus of the 1996 meetings was to reach agreement on digital properties offered in on-line and Internet commerce and two treaties were developed: Phonograms Treaty covering digital piracy of audio works and Copyright Treaty covering literary and artistic works, including films and computer software. These treaties must now be ratified and enforced by member countries.

Protection during the transmission of digital assets is not only a domestic issue, but one of global proportions. The resolve of this issue creates an incredible opportunity for all companies involved. Computer and software companies, internet providers and developers along with rights holders must come together and develop standards to protect digital assets. The loss of entire formats will occur if these issues are not properly dealt with. These companies have tremendous expertise and financial backing to conquer this problem.

Just as the global development of digital assets allows for a new enlarged market, it greatly complicates the fight against piracy. Now, multiple countries are required to meet and develop and enforce standards which cross national boundaries. Often, countries have their own agenda and do not always see piracy as damaging. Enforcement is limited. These actions will severely limit the growth potential of these markets and need to be overcome to put an end to piracy.

MPAA Report (1997).

Nimbus CD International (1998), discussion, 19 March.

Price Waterhouse (1998) ‘EMC technology Forecast.’

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