March 21, 2005
Volume 8, Issue 5
Welcome New Member KlikVU
Please warmly welcome KlikVU, Inc. to the Operations Group. We look forward to providing valuable services to this newest DCIA Member and supporting its contributions to commercial development of the distributed computing industry.
KlikVU has been working with Windows Media streaming for five years. KlikVU's infrastructure division, ClearLine Streaming Services, now offers video encoding, hosting, and streaming to customers including TV networks and affiliates as well as individual channels and broadcasters.
For the file-sharing marketplace, KlikVU DRM encrypts video files in a digital container that contains the rules, such as how many views or how many days, and the price. The price can be set to $0.00 for sponsored content with customers asked to provide contact information or answer a questionnaire.
Authorized peer-to-peer (P2P) redistribution is accomplished by consumers placing files in their shared folders using Kazaa, Grokster, TrustyFiles, iPeer, eDonkey, BitTorrent, etc. KlikVU makes the metadata and description searchable, so customers can easily find it for downloading. Each attempt to view pops-up a splash page featuring promotional messages, images, and trailers, then the DRM license check-out form.
Last week, KlikVU and NetMusic Entertainment announced the first in a series of joint technology development and content licensing initiatives.
"In KlikVU, NetMusic has found a partner that represents the same superiority in the technological space that we represent in the content acquisition space," said NetMusic's CEO, Glen Starchman.
Lowell Feuer, CEO of KlikVU added, "We are excited to match KlikVU's industry leading technology with NetMusic's ever-growing catalog of music and film products. The consumer is the real winner in this joining of forces."
Stereophonics Release Album on Kazaa
DCIA Member Altnet has added top label V2 to its roster of world-class indie customers, including Koch Media, Artemis, Epitaph / Anti, Side One Dummy, Palm, Simmons/Latham and Digital Rights Agency. Two weeks ago, Altnet announced a new initiative for sharing ad revenue with independent labels.
With V2's exciting addition comes the announcement that its hit band, Welsh rock trio Stereophonics, plans to release its eagerly awaited fifth album "Language. Sex. Violence. Other?" through Kazaa and other peer-to-peer (P2P) file-sharing software programs.
Stereophonics fans will be able to purchase newly released songs at $0.99 each or the entire album for $9.99. The video of the first single released from the album, "Dakota," which bowed at No. 1 on the UK singles chart, will be available free to Kazaa users.
"We are very excited to be working with Altnet. V2 recognizes that online distribution via P2P is the perfect vehicle to reach fans directly and cost effectively," said Beth Appleton, head of new media at V2. "Promoting Stereophonics through Kazaa is a fantastic opportunity to demonstrate the powers of online distribution."
"Increasingly, artists and independent labels understand the value of using peer-to-peer as a distribution mechanism to reach millions of fans," noted Alan Morris, Executive Vice President of DCIA Member Sharman Networks, distributor of Kazaa Media Desktop (KMD).
"We are pleased to have Altnet serve as the platform for P2P vertical integration between indie label and artist, file-sharing application and distributor," added Lee Jaffe, Altnet President. "This collaboration will translate into a model case-study for the future of digital entertainment."
Parents Keeping Tabs on Kids' e-Habits
Excerpted from Media Life Report
Teenagers are logging on to the internet to do everything from chatting to studying, and parents are limiting what they can access. According to a new study released by Pew Internet & American Life Project, 54 percent of internet-connected families with teenagers, compared with 40 percent four years ago, use a filter or monitoring software to block potentially harmful online content.
The number of children living in homes with filters has grown from 7 million in 2000 to 12 million today. Of those parents who use filters or monitor their kids' access, 62 say they check their child's surfing habits, but only 33 percent of teens thought their online use was being monitored.
Report from CEO Marty Lafferty
 Kudos to Consumer Electronics Association's (CEA) President Gary Shapiro and team for their timely "IP and Creativity Conference" in Washington, DC last week. The event attracted more than 200 representatives from the technology and entertainment sectors, along with top government officials.
The needs to defend consumers' fair-use rights, preserve innovation, and redefine protection of copyrights and patents were the central themes of the conference.
We are grateful to DCIA Member INTENT MediaWorks' Founder & CEO Les Ottolenghi for participating as a panelist and discussing INTENT's growing success with marketplace solutions for the peer-to-peer (P2P) file-sharing distribution channel.
Gary Shapiro set the tone, saying, "The technology industry, the media, and the policymakers, have given the content community a free hand in defining the issues of how technology affects creativity. It is time to recast the discussion and change the language of the debate."
Congressman Rick Boucher (D-VA) noted, "The technology community must martial forces and be prepared for a legislative fight no matter the outcome of MGM v. Grokster to ensure that the rights and freedoms established in the Betamax case are maintained." Congressman Boucher has introduced HR 1201 aimed at codifying the protections established in Betamax and amending the Digital Millennium Copyright Act (DMCA).
Intel President & CEO Craig Barrett, recipient of CEA's Industry Digital Patriot award said in accepting the honor, "Innovation should be left to the engineers and taken out of the hands of the government."
Senator Norm Coleman (R-MN) reasserted the importance of the private sector finding a balance between copyright protection and continued innovation, "Solutions do not lie in more laws or legislation. Solutions lie in the common ground between all players in the debate. Congress will be eager to hear these solutions, but don't come knocking until you're done talking."
Panel moderators were particularly effective in framing issues and drawing out views of panelists.
In Gary Arlen's session, most panelists agreed that premature regulation of P2P would stifle technological innovation and serve to protect the status quo. Looking forward to next year, the panelists believe the same issue will continue to be on the table – how to manage both copy protection and innovation.
Jonathan Krim's panel drew a consensus that P2P technologies are here to stay and that the content industry needs to define new business models that defend fair-use rights instead of trying to impose laws making them illegal.
David Leibowitz's session focused on how the content industry needs to continue embracing new technologies while respecting the rights and freedoms established under Betamax. Panelists overwhelmingly agreed that the content industry needs to continue to focus on meeting consumer expectations.
Jon Healey's closing panel featured an energetic debate on how to protect content owners while still allowing technology companies to innovate. NetCoalition's Markham Erickson said, "If new and developing technologies are threatened with litigation and lawsuits, that atmosphere will shut down innovation." The MPAA's Dan Glickman, responded, "We have more in common than we have differences. We should work together on areas of common concern."
Cleaning Spam from the P2P Environment
Excerpted from CNET News Report by John Borland
Cornell University researchers are trying to filter spam out of peer-to-peer (P2P). The tool could also filter out the numerous "decoy" files used by Hollywood to discourage downloaders.
Released Monday, "Credence" software lets computers figure out which P2P files can be trusted, and which should be ignored. The researchers say they're trying to take a page from Google's book, boosting the accuracy of search results by relying on recommendations of other trusted users.
P2P developers have long focused on the idea of trust. Because any computer can join and become an instant equal in a network, researchers have looked for ways to prevent attackers who want to disrupt data traffic or spread corrupted information.
The open-source Credence starts with users giving ratings to files. From there, the software "gossips" with other computers to see how other people have rated the same files. When searching for files, the software then gives precedence to results that have been rated highly by this trusted community of people whose ratings have matched.
While aimed at unwanted advertising, the reputation-based filtering system could also serve to filter out decoy files.
DCIA & Declaration of Innovation Independence
The DCIA has signed onto the Declaration of Innovation Independence introduced last week by the CEA, Electronic Frontier Foundation (EFF), American Conservative Union (ACU), Home Recording Rights Coalition (HRRC), and American Library Association (ALA).
This document provides a series of principles to ensure that fair use, home-recording rights, and innovation are protected in legislative, judicial, and regulatory proceedings related to the protection of intellectual property (IP).
The Declaration of Innovation Independence calls on allied groups and policymakers to work towards six main goals:
- Recognize that our founders instituted copyright law to promise creativity, innovation and culture, and this goal can only be met if new technologies are not stifled and fair use rights are upheld.
- Reaffirm the Betamax holding that a product is legal if it is capable of substantial non-infringing uses.
- Resist pleas to create new laws, causes of action, liabilities, and avenues to obstruct new product introductions and technological innovation.
- Reestablish the fundamental rights of consumers to time-shift, place-shift and make full use of lawfully acquired content; and use that content on a platform of their choice.
- Reexamine the length of the copyright term and explore avenues for content to be reliably and readily available for creative works, scholarship, educations, history, documentation and innovation benefiting overall society and generated from creative minds throughout the general public.
- Realize that our nation's creativity arises from a remarkable citizenry whose individuality, passion, belief in the American dream, and desire to improve should not be shackled by laws that restrict creativity.
Click here for a full copy of the Declaration of Innovation Independence.
Indie911 at South By Southwest
DCIA Member Indie911 had a very successful South By Southwest (SXSW) this year working with the Department of Canadian Heritage to support Canadian artists and sponsoring a party and showcase at MoMo's.
Indie911's SXSW lineup included Samantha Stollenwerck, Grace Potter & The Nocturnals, Amanda Ghost, Shiny Toy Guns, Marla Sokoloff and twenty others. Indie911 is currently expanding its catalog of licensable material to be placed in media vehicles including the P2P distribution channel.
SVC Financial "Scoot" Fund Transfers
DCIA Member SVC Financial Services will unveil "Scoot," a unique capability to transfer funds by means of interconnected devices, for example from one wireless telephone to another, at Intele-Card Expo this week in the Miami Beach Convention Center.
"With the introduction of this product, we believe SVC will fundamentally change the business of funds transfer," said Christopher Haigh, SVC President & CEO. "This is a huge step forward, not to mention a huge business, $90 billion plus last year in remittances, generating over $7 billion in fees. Our research shows that there is tremendous demand for a cost effective service that is easy and secure, and that's Scoot!"
DallasBlue Future of Digital Music Forum
The second annual DallasBlue Future of Digital Music Forum (FDMF) will be held this Thursday March 24th at Swan Court in Richardson, TX from 5:30 to 9:30 PM featuring nationally-known speakers ranging from a P2P company founder and CEO to a four-time Grammy award-winning artist. Sponsors include DCIA Member RazorPop, B2B DFW, Lone Star Community, and MIT Enterprise Forum.
This year's theme is "What's Beyond iTunes" and topics include the current state of the digital music industry, upcoming Supreme Court case, and future of marketing, distribution, and technology.
Artists Colby Logan and the MizzBehavin' Band will perform live at FDMF. Logan plays a fresh blend of folk, country, and rock, and the MizzBehavin' Band bills itself as "Rockin' Blues with Soul." Speakers include Daedalus Consultants' Trey Bowles, Home Sweet Home Records' Chris Christian, RazorPop's Marc Freedman, Diffusion Group's Michael Greeson, PassAlong Networks' Robin Pou.
Click here for more information and to register online or call 214-770-3800.
Coming Events of Interest
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Winter Music Conference – In its 20th anniversary year, WMC is regarded as the singular networking event in the dance music industry, attracting professionals from over 60 countries. WMC will be held March 22nd-26th at the Wyndham Miami Beach Resort in Miami, FL. With its high concentration of top international artists, DJs, and industry professionals, WMC permeates the international press. Every aspect of the industry is represented including the top technological innovators, artists, DJs, producers, radio and video programmers, retailers, distributors, and audio manufacturers.
DCIA CEO Marty Lafferty will speak at WMC on copyrights in the digital age. "Your Fair Share: Digital Copyrights" panel topics include P2P, copy protection technology, licensing preferences, fair usage, and international copyright issues.
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Supreme Court Oral Arguments – The US Supreme Court will hear arguments March 29th on whether companies that provide peer-to-peer (P2P) software violate copyright laws if their users commit copyright infringement. The Court's date for oral arguments in the case, MGM v. Grokster, coincides with an expected decision in a similar high-profile case in Australia, which involves Kazaa.
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Digital Hollywood Spring – An extraordinary group of over 300 speakers will be featured during the 16th Annual Digital Hollywood Spring at Loews Santa Monica Beach Hotel in Los Angeles, CA March 30th-April 1st. Digital Hollywood is the leading gathering of entertainment, media and technology executives.
Tracks and panels with special relevance to the DCIA include subjects ranging from DRM & Piracy: Digital Rights Management in Film, Music and Technology; to P2P Super Distribution: Evolution of the Content Distribution Revolution.
Speakers (with DCIA Member links) include BayTSP's Mark Ishikawa; CEA's Michael Petricone; CH Potomac's David Leibowitz; Digimarc's Reed Stager; Digital Containers' Chip Venters; EMI's Ted Cohen; Envisioneering Group's Rick Doherty; FOX's Ron Wheeler; INTENT MediaWorks' Les Ottolenghi; Jun Group's Mitchell Reichgut; MasurLaw's Steve Masur; Microsoft's Derek Broes and Andy Moss; P2P Cash's Tom Meredith; Overpeer's Marc Morgenstern; SPE's Mitch Singer; ThinkAndLink's Gerd Leonhard; and UMG's David Ring.
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Justice Talking – On April 5th NPR's debate format show taped in front of a live audience at the National Constitution Center in Philadelphia, PA will be discussing digital copyright, the MGM V. Grokster case, P2P, music sampling and more.
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Copyright and Internet Intermediaries – The management of intellectual property in the online environment poses significant opportunities as well as challenges, and raises high stakes as the value of online transactions, both authorized and unauthorized, increases.
Internet intermediaries, which may include Internet service providers (ISPs), file-sharing software distributors, auction sites, and portals that enable these transactions, are at the center of global debate involving complex policy, legal and business issues.
The World Intellectual Property Organization (WIPO) is sponsoring a seminar to help obtain a better understanding of these issues on April 18th at its headquarters in Geneva, Switzerland.
The seminar is designed to provide a forum for discussion among international experts and business leaders, academics, government delegates and policy makers.
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CONNECTIONS Digital Home Conference – This executive marketing conference, to be held May 11th-13th at the Hyatt Regency near the San Francisco Airport in Burlingame, CA combines Parks Associates' market and consumer expertise with insights from key industry strategists to provide a comprehensive analysis of current and future "Digital Living" technologies.
DCIA Members Digital Containers' CEO Chip Venters and Trymedia Systems' SVP Gabe Zichermann will be featured speakers.
Parks Associates' research shows that roughly one-third of all US households now have broadband access and nearly 20 million have a home network. The combination of these solutions is changing the paradigm for access to mainstream music, movies, television programs, and games. Currently one-third of all Internet households listen to online radio stations each month, and a comparable number download music files. Likewise, 10% of all Internet households access on-demand video content each month.
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