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The Real Purpose of DRM

Jeremy Allison - Sam writes "Ian Hickson, author and maintainer of the HTML5 specification, comments about the real reasons for DRM. They're not what you might think. Ian nails it in my opinion. He wrote, 'The purpose of DRM is not to prevent copyright violations. The purpose of DRM is to give content providers leverage against creators of playback devices. Content providers have leverage against content distributors, because distributors can't legally distribute copyrighted content without the permission of the content's creators. But if that was the only leverage content producers had, what would happen is that users would obtain their content from those content distributors, and then use third-party content playback systems to read it, letting them do so in whatever manner they wanted. ... Arguing that DRM doesn't work is, it turns out, missing the point. DRM is working really well in the video and book space. Sure, the DRM systems have all been broken, but that doesn't matter to the DRM proponents. Licensed DVD players still enforce the restrictions. Mass market providers can't create unlicensed DVD players, so they remain a black or gray market curiosity."

46 of 213 comments (clear)

  1. Today is officially "No shit Day!" by TechieRefugee · · Score: 5, Insightful

    First, a study showing that piracy has a negligable effect on profits and now this? I officially decree today to be the day of "No shit" Stories!

    1. Re:Today is officially "No shit Day!" by amicusNYCL · · Score: 4, Funny

      I was misled! I was told that DRM would help me to manage my rights. Is this no longer the case?

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
    2. Re:Today is officially "No shit Day!" by msauve · · Score: 5, Insightful

      DRM isn't directly about "no copy," and it isn't directly about controlling device manufacturers.

      It's about getting around "first sale" rights. They don't want you to be able to sell what you bought to someone else (hence "no copy"), and they want you to re-purchase if you want it on a different device (hence the "device control"). They want you to rent, not own, content.

      --
      "National Security is the chief cause of national insecurity." - Celine's First Law
    3. Re:Today is officially "No shit Day!" by girlintraining · · Score: 5, Insightful

      I was misled! I was told that DRM would help me to manage my rights. Is this no longer the case?

      Well, there's a reason they call copyright owners "rights owners", and they call you a "consumer". Because otherwise, you'd own your personal digital devices, and you'd do whatever you want with them, and we can't have that. There's money to be made in taking away your rights and then selling them back to you as a privilege that can be taken away at any time.

      --
      #fuckbeta #iamslashdot #dicemustdie
    4. Re:Today is officially "No shit Day!" by Technician · · Score: 4, Interesting

      DRM prevents first purchase. My MP3 players (all under $20 US) do not support DRM. I use them for Libravox audio books. I am catching up on the classics for free. http://librivox.org/

      Recent titles include;
      The invisable man
      The little princess
      Moby Dick
      Tom Sawyer
      Journet to the center of the earth

      I listen to old radio shows too.

      --
      The truth shall set you free!
    5. Re:Today is officially "No shit Day!" by Arker · · Score: 4, Insightful

      Or, to put it even more simply, DRM is about destroying private property rights and replacing them with a system of privilege.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
    6. Re:Today is officially "No shit Day!" by jellyfoo · · Score: 2

      More specifically for game DRM, the vendors want to ensure you're locked into their platform when you buy games from them, and DRM enforces this. I don't use Origin, Uplay or even Steam anymore, because (for the most part) anything you buy on a platform requires a client to validate your eligibility every time you try to run a game. You're locked into that ecosystem the vendor has provided. If you decide that Valve are being dicks for whatever reason and you don't want to deal with them anymore, you can't just take what you've bought and leave Steam, since most Steam games require authentication from the Steam client in order to launch. You're stuck with them unless you find a suitable crack, which isn't something that should be necessary. EA/Valve/Ubisoft know this, which is why they have no incentive to remove the DRM on their respective clients.

      I know in Steam there are a handful of completely DRM-free games in which you could separate from Steam itself if you wanted to, but they're also an extremely small subset of everything on the platform and aren't advertised anywhere in the game's store page of this being possible. It's ultimately easier to just assume all games on Steam utilize its DRM, and so you're still tied to it.

    7. Re:Today is officially "No shit Day!" by Runaway1956 · · Score: 4, Informative

      I think you slipped up there. RIAA is NOT a content producer. RIAA is a parasitic organization that has never produced anything other than a sense of satisfaction for it's members, and grief for consumers. Some of RIAA's members produce content, but RIAA produces nothing.

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    8. Re:Today is officially "No shit Day!" by viperidaenz · · Score: 4, Funny

      RIAA produces money for its members and lawyers. They also produce written works in the form of legislation.

    9. Re:Today is officially "No shit Day!" by jellyfoo · · Score: 2

      In response to myself...

      I will say that I also play Deus Ex: Human Revolution via a prated copy instead of Steam? Why? Because in late 2011 (just before I gave up on Steam) I bought the game, hence I feel morally OK with playing the torrented version since I bought it full price anyway. Technically this isn't allowed as it breaches the license agreement despite having paid money for the Steam version, but fuck it.

    10. Re:Today is officially "No shit Day!" by hazem · · Score: 3, Insightful

      Do you care to share what mp3 players you use and what you like best about them?

      Also, if you're in the US, you can get a ton of audiobooks to listen to for free at your local library. If they don't have them at your local branch, they can probably get them via inter-library loan. I've listened to tons of books this way.

      Libravox is nice, and I fully support the idea. But I find many of the readers difficult to listen to over a long book - and I'm sure my own reading would be hard for others to hear as well. There's a reason professional readers like Scott Brick, George Guidall, James Delotel, Lloyd James, and Jim Dale, are popular and hopefully well-paid. They're essentially actors and doing a lot more than just reading words off the page.

    11. Re:Today is officially "No shit Day!" by Arker · · Score: 2

      Private property rights are based on respect for the integrity of your fellow man, they are not a system of privilege (though of course it's granted that some of the same rhetoric is often borrowed and misuses by defenders of privilege.) As long as private property rights are properly understood, to apply only to the rights of quiet enjoyment and disposal of rivalrous goods you create or acquire in honest trade, there is no privilege involved, at least as I understand that word.

      --
      =-=-=-=-=-=-=-=-=-=-=-=-=-=-
      Friends don't let friends enable ecmascript.
  2. Short version by girlintraining · · Score: 4, Insightful

    DRM is an attempt to circumvent one of the primary functions of a computational device: Copying of data. The reason for this is money and power. One group thinks they deserve money or power over another group. This is the simple truth of all DRM, and I can explain it shorter than the article, and even the summary of the article. It is what it is.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:Short version by Anonymous Coward · · Score: 5, Interesting

      The most evil drm I always thought was region coding.
      I can think of many purposes, but none of them really stand up if you study them, like the "official" reason to allow continent proce discrimination. It implies that the block of countries has something in common that will always make them separate from other blocks somehow and that each block has some kind of ruler that controls those countries and only those.
      If the distributors has their way, I'm sure they would have made the region coding specific to every DVD-player (like player keys like bluray, but worse)

    2. Re:Short version by viperidaenz · · Score: 2

      The best way around region coding is to live in a country that doesn't make it illegal to remove such restrictions. (read: Pretty much anywhere except USA)

  3. But but piracy is good for media sales... by Anonymous Coward · · Score: 2, Funny

    http://yro.slashdot.org/story/13/03/19/209213/study-piracy-doesnt-harm-digital-media-sales

    I'm so confused. Goddamnit Slashdot.

    1. Re:But but piracy is good for media sales... by Pi1grim · · Score: 2

      Nothing to be confused about piracy is good for sales, DRM is bad for sales. As simple as that.
      Some people have learned it with Walmart music store, many will soon learn it. SimCity fiasco is another example. Users are slowly starting to realize, that DRMd stuff is as good as damaged goods - a gamble in which you are much more likely to lose.
      Also, this anti-circumvention bull does not fly in most countries with the exception of USA. Here in Europe I can do whatever it takes to make my legally obtained device operational in the way I please. Be it soldering, hacking firmware, removing sim-lock or just stripping DRM from anything I purchased.
      I just hope that in a decade or so we will be able to look back at this time and smirk at the "digital dark age" where pirate-hunting lawyers roam the free digital seas and tried to prevent people from collecting, sharing and copying information. RIAA is nothing but a new-age Luddite, trying to throw a shoe into the cogs of progress, hoping to make a quick buck doing it. We all remember how that ended.

  4. The author has it partly right.. by mark-t · · Score: 4, Insightful

    DRM is about distributive control... but they've always had distributive control in one form or another anyways.

    The purpose of DRM is to supplement the diminishing faith that the content makers have traditionally placed in the strength of the copyright claim alone to keep people from copying the work without authorization.

    As copying has gotten easier and easier, the mere social contract between publisher and community, which essentially says that the latter will not copy it without permission, effectively granting the publisher a form of distributive control, has started to break down... people are no longer adhering to their side of that contract, and so it is inevitable that publishers will seek alternative means to protect their interests.

    Before copyright itself, effective distributive control still existed for people who made content because the work involved in making a copy was very time consuming and difficult. At the very least, it involved sufficient manual labor and errors in reproduction that the counterfeits rarely obtained as much notoriety as the originals. This is hardly the circumstance today, where it's pretty much an an everyday occurrence to see movies that wer3e just released up on Pirate Bay within days or sometimes hours of release, for download by anybody who simply doesn't want to pay the cash to see it in the theater.

    1. Re:The author has it partly right.. by russotto · · Score: 4, Informative

      As copying has gotten easier and easier, the mere social contract between publisher and community, which essentially says that the latter will not copy it without permission, effectively granting the publisher a form of distributive control, has started to break down.

      Nice try. But the DMCA came before Napster, and DVD DRM (and Macrovision before it) came before general-purpose computers could play back video well. This isn't a chicken and egg problem, we know which came first. It seems likely that the main original purpose of DVD DRM was to enforce region coding, not to prevent copying.

    2. Re:The author has it partly right.. by Anonymous Coward · · Score: 2, Insightful

      As copying has gotten easier and easier, the mere social contract between publisher and community, which essentially says that the latter will not copy it without permission, effectively granting the publisher a form of distributive control, has started to break down... people are no longer adhering to their side of that contract, and so it is inevitable that publishers will seek alternative means to protect their interests.

      That's funny... in my country, every time you buy storage media (e.g. SSD, HDD, DVD, CD, memory cards) or anything that contains storage media (e.g. tablets, MP3 players), you're actually charged a private copying levy, specifically to compensate "content producers" (actually "publishers", but let's pretend for a second) for the fact that PRIVATE copying is actually legal here (as it is in most of the World).

      So... you see, in my country, it's actually PUBLISHERS who are breaking the social contract, since they are already being compensated and, by implementing DRM, they are (in)effectively preventing the (fully-legal and PAID FOR) private copying.

      They can't just accept the levy and then claim it's not "fair compensation". If they are accepting the fees, then they are explicitly signaling that they acknowledge the fact that people ARE allowed to make private copies of things they bought. Trying to implement DRM to prevent this is not only unethical but moot (suprisingly, not only will it not prevent anyone from getting a DRM-free version of it, it might actually make people not buy your product).

      So... no, I didn't break any contract and you can be damned sure I will seek all means to protect my interests: starting by boycotting the crap that gets sold as "entertainment" in the US, just to prevent my money from ever being used by publishers for litigation, extortion and "international lobbying".

      captcha: funnier

  5. As has been said, by Mister+Liberty · · Score: 5, Insightful

    DRM manages you rights in the same way jail 'manages' your freedom.

    1. Re:As has been said, by viperidaenz · · Score: 2

      With DRM, regardless of what the feedback is, you're screwed. The question is just by how much.

    2. Re:As has been said, by sapphire+wyvern · · Score: 4, Insightful

      Yes, you're quite right. DRM doesn't manage the user's rights. It "manages" the publisher's "rights", by infringing on those of the users.

    3. Re:As has been said, by Rakarra · · Score: 3, Insightful

      Carlin was a funny man with a good deal of insight, but he's said a lot of shit over the years and I would not say his ultra-cynical view of the world matches reality, nor is it useful to think that way.

  6. Cheap hardware mitigates by spire3661 · · Score: 5, Interesting

    I have media players from China that will play most popular video formats and completely ignores any DRM scheme including Cinavia. I paid $40 for it w/ free shipping and no tax. It has no network port, doesnt rely on servies or logins or fees. You put movie files in, movies play out. Copyright as it stands now will not be able to weather ubiquitous computing.

    --
    Good-bye
    1. Re:Cheap hardware mitigates by Technician · · Score: 2

      Try a free software version for your PC.

      Skipping the previews and just playing the movie is a huge plus.
      http://www.geexbox.org/download/

      --
      The truth shall set you free!
  7. Re:PDF by BrokenHalo · · Score: 3, Insightful

    But on the book side, it seems many E-readers can easily read PDF and other formats which makes for easy licensing.

    Yeah, and it was the wide range of supported formats that persuaded me to opt for a Sony reader. But as it turns out, I would still do the same even if that were not a factor. IMO the epub format is far superior to any of the others (fortunately .mobi and .lit formats can be converted by Calibre), since these files are so easily tweaked for better readability. I really dislike having to put up with PDF files on the device, since they are invariably prepared with silly page layouts that just don't work very well on the device's display.

    The other good news about epub files is that it is so easy to strip DRM out of them. My rationale is that if I have paid for an ebook, I should be able to treat it exactly as I might a paper copy, i.e. lend it to family or friends.

  8. Region codes by PPH · · Score: 3, Interesting

    Not something we here in the USA give much thought to. But in the rest of the world, region-free DVD players are more than a curiosity.

    --
    Have gnu, will travel.
    1. Re:Region codes by Kittenman · · Score: 3

      Not something we here in the USA give much thought to. But in the rest of the world, region-free DVD players are more than a curiosity.

      Tut now. Some movies aren't available in region-1 format. Spread your wings a bit, try something with subtitles.

      --
      "The greatest lesson in life is to know that even fools are right sometimes" - Winston Churchill
  9. DVD players? by leromarinvit · · Score: 3, Insightful

    I'm confused. Why would anyone care what a DVD player does or doesn't do, when there's a free, high quality, ad-free version of pretty much anything on the Pirate Bay (and countless other distribution channels) that will play on any device, in any way I want, whenever I want?

    They can (somewhat, temporarily) control their own distribution channels. But once it's out in the open, any and all control over these closed channels is moot.

    --
    Proud member of the Ferengi Socialist Party.
    1. Re:DVD players? by JaredOfEuropa · · Score: 5, Insightful

      This. The Pirate Bay (and Usenet, and private Torrent trackers) offer something that media companies don't... If they had been paying any attention, they'd have taken a clue from AllOfMP3: content for a decent price, in the format I want, at a compression rate of my choice. And mine to play and replay when I want, on a device of my choice, with no ads.

      I don't pirate movies because I can do so free of charge. I got to a point in life where my time is actually rather valuable, so I am willing to pay for convenience. And I am certainly willing and able to pay for content because it's the right thing to do. Yet I pirate movies because the pirates offer a vastly better product and movie distributors stubbornly refuse to follow suit. Well, fuck 'em.

      And fuck the book publishers too. I still get told all too often that I am not allowed to buy certain ebooks because I don't live in the USA... even though the same companies are happy to ship me a paper copy. Guess what, the customer you refused to do business with found what he wants on the Pirate Bay

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    2. Re:DVD players? by jellyfoo · · Score: 3, Insightful

      Agreed.

      All I want is for the studios to provide something comparable with what I can get on torrent sites:

      * A standalone file that doesn't require authentication with some server somewhere.
      * A file encoded in an open (enough) container & format like MP4/MKV, such that it can be decoded by anything and on any operating system/platform. I don't want to have to rely on a propritary Windows-only program to play my purchased files.
      * HD quality files (720p or 1080p - even better, having a choice at purchase/download time)

      That's it. I'm not asking for much really; if randoms on the net can do this, so can the corporations. Yes the torrents are free, but if all things are equal then I'll gladly pay a reasonable price for content if these requirements are met. I WANT to be 100% legit, if only because I feel it's a reasonable case to want to pay someone for their work. But I'm certainly not going to pay money for an inferior product.

      But no - instead we have streams instead of hard files so that the video can be controlled (as if it'll stop piracy), and browser plugins for viewing that are Windows only (which is OK since I still use Windows, but I like as much openness as possible to diversify things and futureproof my options in case Linux distros improve enough to become a viable option for a home desktop). Oh, and regional shit which prevents me from accessing content the US releases because I happen to live in Australia - as if my money isn't of any value. Torrents don't have this limit.

      They just don't want to give people the optimal solution, even if we're ready to reward them for fucking listening to us.

  10. Re:Only a small piece of the puzzle by Darkness404 · · Score: 2

    Except you have a device to create infinite amounts of candy for free using only a single piece of candy and then being told that you can't, not because of any real limitations, but because someone told you that you can't.

    The sooner we get rid of artificial scarcity the better.

    --
    Taxation is legalized theft, no more, no less.
  11. Complete and utter nonsense by Anonymous Coward · · Score: 3, Informative

    People who make IP are pissed when other people can easily copy and distribute their work for free. It is a VERY common Human emotion from creators.

    DRM is nothing but a modern version of 'copy protection'. Or perhaps the idiot Hickson wants to argue that copy-protection sought by people like the Beatles, or used on VHS tapes, happened because the 'content providers' wanted 'leverage' over the people making the playback hardware.

    DRM is a super-set of basic copy-protection ideas, that has vastly enhanced functionality ONLY because modern levels of tech make such functionality possible. Everything that DRM causes is a 'down-stream' consequence of tech possibilities, NOT the reason DRM exists in the first place.

    All current legislative pressure (the actions of your government) insists that DRM must NOT relate to issues of hardware monopolies- the exact opposite of what idiot Hickson is saying. Hickson is like the idiots who try to argue that EULAs over-rule your 'first sale doctrine' rights.

    Governments will only allow DRM to ultimately serve two purposes. 1) to stop illegal copying and distribution. 2) to allow media to be provided as a 'service' (where the data is no longer accessible when the service conditions end). Companies that use DRM do NOT get to trump the law of the land.

    An idiot might ask "why then are so many DRM schemes associated with particular hardware". The answer is, of course, down to the emerging state of the technology. Universal DRM systems require technology to reach a level (cost and capability) where they become commercially feasible. In the interim (as with all new technologies) a lot of proprietary intermediate solutions get implemented.

    The example of 'licensed' DVD players is laughable and humiliating. There is no such thing as an 'unlicensed' DVD player in the sense the idiot Hickson means. Unlicensed in this case means companies that illegally refuse to pay to use the patents of Sony and Phillips- patents that have nothing to do with DRM, but patents that describe the fundamental workings of DVD players. Refuse to pay for the patents, and you can make a cheaper DVD player. None of these so-called unlicensed players (stand-alones) allow for illegal copying of protected Disks. Idiot Hickson is obviously confusing the idea of 'region free' players- a feature found in the majority of LICENSED players via a service menu function.

    Of course, in the short term, many companies will attempt to illegally exploit their DRM system in order to restrict the rights of their customers. But let me ask you a question. Did Apple do this? Cheap crooked behaviour is for small fry criminal companies. You want to be the biggest player? You are going to have to respect consumer rights.

    A neat example of this is with Sky TV in the UK, the world's most advanced broadcast service. Rupert Murdoch, the owner of Sky (and Fox in the USA) may be rotten to the core, but he is no fool. He has hardware built to spec for home reception, but has embraced the Internet and all mobile devices. He intends that all of his televisual content can be received on ANY mobile device owned by his customers, including offline storage of shows with DRM. Hardware issues play a part here, but not in any way Hickson describes. Media companies require 'protected video playback paths' in the video hardware subsystems so that the decoded video stream may not be intercepted and copied. You may imagine this as the concept of 'write-only' memory for the video-buffers.

    DRM has NOTHING to do with seeking control of those that build the playback hardware. PS now I know why HTML 5 is proving to be such a bad joke. Isn't it time open-source grew up, and started to worry about the intellectual abilities of those that control key projects.

  12. What about "unauthorized producers"? by Rob+the+Bold · · Score: 4, Insightful

    In addition to unauthorized distribution of copyright works, I assume that DRM is also intended to prevent "unauthorized producers" of content from being able to distribute their works. Now that distribution no longer absolutely requires going through "official" channels, some means of preventing "pirate," that is to say, non-major-studio-authorized, content is needed.

    --
    I am not a crackpot.
  13. It still comes down to the same thing by Skapare · · Score: 2, Insightful

    ... one industry wants to create a distribution monopoly by controlling everything, and eliminating competition.

    --
    now we need to go OSS in diesel cars
  14. No... by Darkness404 · · Score: 3, Interesting

    No, DRM hasn't "worked" for video and books. Its been made less annoying, but it still hasn't "worked" and it won't "work" in the future. Two reasons why this has happened:

    1) eBooks have apps for just about anything. You can read your Kindle on your Kindle, on your iPhone, on your Android, on your PC, on your Mac, etc. And there is a bonus to using these services because theoretically it should keep track of where you are in your book. But when Amazon eventually stops supporting X, customers are screwed.

    2) Video is limited by sheer size, downloading a library of 100 songs takes up, what, less than half a gigabyte? Downloading a library of 100 movies in full HD can easily take up several hundred gigabytes. Video is also limited by what devices really "work" for it, you're unlikely to want to watch Netflix on your new iWatch on its 3 inch display. They've also done streaming which makes the DRM more bearable.

    But the problems that are inherent in DRM is that it punishes people who want to buy things legitimately, but can't. Just look at region-locking which is often paired with DRM, you're essentially telling someone that if you want what we're selling, you need to acquire it through illegitimate means. I'm sure there's lots of non-Americans who'd pay for Hulu, I'd easily pay the BBC to have access to iPlayer, but instead I pay for VPN/Proxy to access it illegitimately.

    --
    Taxation is legalized theft, no more, no less.
  15. DRM is about controlling the distribution channel by rocket+rancher · · Score: 2

    ...and Hickson nailed it in one. The motion picture industry and the recording industry learned the hard way what happens when you lose control of the distribution channel. The RIAA and the MPAA are just ways of doing damage control until the those industries can get back into control of the distribution channel. As Hickson noted, the publishing industry learned from the recording and entertainment industry's mistakes -- it is embracing digital delivery via the net without surrendering control of the distribution channel by insisting on DRM in their content and requiring only DRM'd devices at the consumer end of the channel. The publishing industry is well on the way to making dead-tree fiction and non-fiction -- well, fictional, if you'll forgive the word play. That's what DRM is all about -- helping content providers maintain control of the distribution channel from end to end.

  16. Re:Only a small piece of the puzzle by Fluffeh · · Score: 5, Interesting

    That's because the Australian regulations add to the development costs of games.

    To legally sell in Australia they have to go trough a ton of legal bullshit your elected officials inflict in the name of 'The Children'.

    Really? So how about all the non-game software, how about Adobe, Microsoft and many others?
    From the article:

    “If you go to Apple’s iTunes and buy Macklemore’s song Same Love, which is number two in the Australian charts, it’s 69 cents in the US and over $2 in Australia,” he said.

    “[And] we found it cost $5795 more to buy Microsoft’s Visual Studio software in Australia compared with the US. These are downloaded products with no Australian labour involved and no local distribution costs – it’s simply a matter of where the computer server thinks you’re coming from.”

    --
    Moved to http://soylentnews.org/. You are invited to join us too!
  17. Re:Only a small piece of the puzzle by wierd_w · · Score: 5, Insightful

    Right of first sale bitch.

    Region locking flat out puts nails in it, and tries everything possible to kill it with fire.

    Without region locking, the right of first sale would permit entreprenurial individuals to buy up cheap(er) product in one target market, then resell the units at a higher (to them, but lower for the downstream customer) price elsewhere, and undercut the phyrric bloodletting bullshit of the publishers and distributors.

    That is completely legal. See the supreme court ruling concerning foriegn textbooks.

    Modern playback equipment boasts scaler chips in their design already to support the many different HD television formats, so claiming "regional formatting" is bullshit. Doubly so considering that the data is digital, and the medium itself is a universal standard.

    I agree that people should pay for their candy. I disagree that they should be barred from buying candy in one place, and selling it in another, taking advantage of price differences. The supreme court recently ruled in my favor on this.

    Region locking exists exclusively to compartmentalize the world economy, and relies on de-facto collusion for price fixing. Laws to enforce the region locking restrictions directly add legitimacy to that collusion. It only works when everyone plays the collusion game, which is why they are lobbying so very fucking hard to kill first sale. First sale lets the cat out of the bag, and deflates the collusion enforced price by opening up alternative markets and pricing.

    Basically, I should be allowed to pay some guy in botswana to buy a dvd for 5$ for me, and ship it overnight air for 15$, for a net of 20$, if I want to. The fact that this would undercut the "handed down from god" price of 50$ in my region for the same product simply doesn't mean dick, other than that the big distributor has a control fettish, and is being abusive. There should be no technological obstrctions to my doing this. The disc is a legitimately printed and authorized copy. The guy in botswana is permitted under the first sale doctrine to transfer his user licesence to me. No illegal copis are made, and no illegal activity is being performed. Especially if free trade agreements remove all import duties and tarrifs as considerations.

    That it makes you feel "oh so bad" as a rights holder that I don't share your estimation of what constitutes a fair market price for your product does not factor into the equasion, and you do NOT have a legitimate basis to enforce your price by locking out foriegn markets from domestic purchasers.

    Competition. Deal with it.

  18. Re:Only a small piece of the puzzle by webmistressrachel · · Score: 3, Insightful

    He had the candy analogy forced on him - imagine if somebody had mentioned this fictional machine that copies books, records, and pictures losslessly 100 years ago - you'd have said something similar about paper being consumable.

    He merely turned the useless baby / candy analogy on it's head, and put it literal terms (unlimited flawless copies). It is you who missed the point, not your parent post.

    --
    This tagline was transcoded to result in at least one smirk. If you experience failure to smirk, please consult your Gen
  19. Re:Only a small piece of the puzzle by shentino · · Score: 4, Interesting

    It's not even that.

    DRM allows content providers to enforce restrictions that go above and beyond vanilla copyright law.

  20. Re:PDF by ganjadude · · Score: 2

    everyone is a "criminal" based on the law, if all laws were enfored fully 100% of the time. I can think of a few ways everyone breaks the law daily

    --
    have you seen my sig? there are many others like it but none that are the same
  21. The opposite position... by peter.hudson8308 · · Score: 2

    I would argue, at least in the world of books (and eBooks), that DRM has been more useful economically to owners of the content readers (e.g. Amazon) than to the content publishers. The fact that Kindle has DRM on its eBooks means that the average end user is unable to easily transfer their eBook purchases from a Kindle to another eBook ecosystem (e.g. Kobo, Nook, Android, or Apple). DRM on eBooks effectively allows an eBook device vendor to lock consumers into their eco-system and provides about as much protection as a paper-mache helmet. Publishers know this, and in my experience are not the ones insisting on DRM for their eBooks these days...

  22. Re:Only a small piece of the puzzle by wierd_w · · Score: 4, Insightful

    *rofl*

    Here, let me help your addled mind.

    1) the cost of production is fungible. There is no real need to subsidize any market in a true free market. You are confusing the employment of a command economy with price fixing and subsidies with a free market economy. This is because when you factor out a ratio of unit production cost as a part of the price component, and retain it in all sales, you will always recoup the unit production costs. Eg, I can look at the supply and demand curves, and see the projected sales price, and use historic data to compute a sales estimate. I can then factor my cost of production into the price as a ratio. Eg, if it costs me 10,000 dollars to make the product, and I expect to sell 200 thousand units, the ratio comes out to .05%. I can therefor realistically recoup some of my development costs from the botswanan economy, if I bake in my costs, computed for their market's demand and currency power.

    That is to say, I still get my money if I sell 500 million units at 5$, or 50 million at 50$. There is no legitimate reason to price gouge one market, and subsidise another, other than that one CAN do so, and get away with it.

    Here's the kicker, AC.

    If everyone rushes to buy the resold botswani dvds instead of the 50$ local offers, money will rush into botswana as a result of the trade. This devalues the american dollar in botswana, and changes the equation. The influx means more money changing hands in botswana, and thus, more disposable wealth in the economy. The local price for the DVD stops being 5$. The incentive to buy from botswana dries up, as the system reaches equilibrium. Eventually, it is cheaper to buy the DVD locally, now for 30$, instead of paying the newly inflated price in botswana, plus shipping, plus markup. The drain stops.

    Even while the drain is occuring, while sales at 50$ have dropped precipitously, demand for the 5$ price unit has skyrocketed. Again, if I have been smart and not greedy, I have baked my production cost ratio directly into that unit price, and the huge surge in demand produces my profit. I sell many times the unit number at the lower price, but still hit the same financials.

    Your argument that the reduced price in botswana is the result of necessary subsidization makes absolutely no sense whatsoever. Here is why:

    If we accept the absurd notion that the distributor cannot sell for less than the 50$ point, irrespective of local economies, then selling at 5$ is selling at a loss. Not only that, we are offering and advertising that product at a loss, warehousing the product at a loss, creating regionally locked units that can *ONLY* be sold at a loss, since they can't be used elsewhere.... see where this is going? What you assert as being true will only serve to radically increase production cost, with no sensible benefit. Allowing the rampant piracy you complain about would actually cost significantly less than making physica product available at such a substantial real outlay.

    The truth is that due to the overall reductions in market costs of the botswani economy, it costs significantly less to send the freight, significantly less to warehouse, significantly less to advertise, etc. The result is that the costs associated are proportionally reduced in conjunction with the price. It is simply easier to do business in botswana. The ratio remains the same. All that changed is the unit price compared to a different market, with higher penetration costs.

    Allowing the customers in the more costly to penetrate market to buy like crazy from the easily penetrated and lower price market, and relying on the free advertisment that will flow as a result of entreprenures marketing their discount DVD shopping services, you can simply invest in a little infrastructure in the cheaper economy and make a fucking killing.

    (Gasp! That's what fucking china is doing! They are making it simply cheaper to do business in china, then getting everything set to pull the rug when the sucking lev

  23. Re:Only a small piece of the puzzle by daveb · · Score: 2

    Not only do we (NZ) not have such regulation - our law explicitly excludes recognition of the validity of anything designed to prevent something playing in NZ. IE if the DRM stops you playing something here - there's no reason to fear anything if you bypass the DRM to play it (providing the "it" was legitimately obtained) http://www.legislation.govt.nz/act/public/1994/0143/latest/DLM1705866.html