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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."

21 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.

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      #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.

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    6. 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
    7. 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.

  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)

  3. 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.

  4. 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 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.

  5. 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
  6. 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.

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    I am not a crackpot.
  7. 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...
  8. 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.”

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  9. 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.

  10. 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.

  11. 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