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Analysis of Consumer Issues and Paths for Concrete Approaches Dr. Carsten Orwat Forschungszentrum Karlsruhe in the Helmholtz Association, Institute for Technology Assessment and Systems Analysis, INDICARE Project Co-ordinator EU DRM Workshop, Brussels, 6 April 2005. INDICARE Project.

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Analysis of Consumer Issues and Paths for Concrete Approaches Dr. Carsten Orwat


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Analysis of Consumer Issues and Paths for Concrete Approaches

Dr. Carsten Orwat

Forschungszentrum Karlsruhe in the Helmholtz Association, Institute for Technology Assessment and Systems Analysis,

INDICARE Project Co-ordinator

EU DRM Workshop, Brussels, 6 April 2005

indicare project
INDICARE Project
  • The Informed Dialogue about Consumer Acceptability of Digital Rights Management Solutions in Europe
    • Open dialogue of stakeholders
    • Stimulated by insights from science and practice

http://www.indicare.org

Funded by European Commission under the eContent Programme

background
Background

Common Sense:

  • Consumer acceptability is key for business success
  • Consumer confidence and trust in services is pivotal
  • Several deficits in consumer acceptability can be observed

Underlying sources for this presentation:

  • INDICARE State-of-the-Art Report and comments by experts
  • Articles of online-journal "INDICARE Monitor"
  • INDICARE workshops
consumer issues overview
Consumer Issues - Overview
  • Access and usages
  • Transparency
  • Interoperability
  • Privacy

Not considered in this presentation, but also important:

  • Flexibility in business models
  • Security and hardware issues
  • Issues of consumers with special status:
    • Consumers with disabilities
    • Libraries, scientists, and educational institutions
access and usages problems
Access and Usages - Problems
  • No statutory consumer rights
  • Risks that contract terms override consumer rights
  • Uncertainty about legality of uses
  • Uncertainty about future usability of purchased content
  • Concerns that DRMS may hinder use of content of public domain
access and usages solutions under discussion
Access and Usages - Solutions under discussion
  • Definition of enforceable consumer rights that can not be overridden by contract terms or technical measures
    • E.g. definition of "numbers" of legal private copies, of "friends" for sharing etc. (at best harmonised in EU)
  • Better consumer experience by commercial use of P2P networks ("superdistribution")
    • Sharing of legally acquired files closer to consumer expectations
    • Utilisation of recommendation mechanisms
    • Consumers become resellers
transparency problems
Transparency - Problems
  • Low consumer awareness of DRM applications
  • Consumer representatives demand for more information on how DRMS are employed
  • Transparency problems in end-user license agreements (readable only after purchase)
  • Problem of information complexity and overload at the visible layer
transparency solutions under discussion
Transparency - Solutions under discussion
  • Clear, condensed, standardised contract information before purchase needed
  • Labelling of “Fair Terms”, such as:
    • Respecting fair contract terms
    • Respecting advanced data protection and privacy standards
    • Respecting “true” interoperability
    • Granting long-term usability of purchased content
interoperability problems
Interoperability - Problems
  • Use of files on different platforms and devices expected
  • Lock-in strategies by vendors
  • Misleading "interoperability" label (only selected devices)
  • Danger that seemingly "open" standards can be captured by single parties; risk of licensing control points
  • Concepts of "authorised domain", "personal area networks", "digital home", etc.: (external) technical definition who belongs to social entities
interoperability solutions under discussion
Interoperability - Solutions under discussion
  • Fully open standards with no proprietary extensions demanded
  • Concepts of "authorised domain" et al. need closer consideration, especially regarding privacy and consumer sovereignty issues
privacy problems
Privacy - Problems
  • Potential of DRMS to monitor product usages, intellectual behaviour, and tastes/habits of consumers
    • Especially by unique identifiers and tracking options
    • Often unknown to consumers and without any implied consent
    • Especially online: reporting back, persistent usage control, remote revocation
    • Many DRM types with different implications (also DRM without privacy issues such as DVDs)
privacy solutions under discussion
Privacy - Solutions under discussion
  • Precise definition of legal information collection and management regarding DRM-based services
  • Constant observation by data protection authorities and privacy advocates (before market entry)
  • Granting anonymous access (e.g. by Trusted Third Parties)
  • Privacy rights management (PRM), definition of ownership of personal data and access rights
  • Self-commitment/self-regulation by vendors
  • Pre-purchase information for consumers about company activities
thank you for your attention
Thank you for your attention!

Get involved and discuss at:

http://www.indicare.org

business models
Business Models
  • More choice for consumers in ways to purchase
  • Product differentiation and price discrimination need considerations by competition/anti-trust authorities
    • For instance, regional price discrimination
    • Options for reselling DRM-based products demanded
  • Danger of closed distribution concepts (control of complementary products)
  • High costs of licensing DRM technology adverse for SMEs and individual creators (competitive disadvantage)
  • Implications for competition, price level, products and cultural diversity, as well as choice for consumers
security and hardware issues
Security and Hardware Issues
  • Potential conflicts between DRM software and other software (e.g. protection software)
  • New vulnerabilities: DRM relative open for external attacks, less control of security by consumers
  • Unresolved concerns of "trusted computing"
  • Exclusion of platforms (e.g. Linux)