August 29, 2005
Volume 10, Issue 4
Welcome New Member Centale
Please warmly welcome Centale to the Platform Group. We look forward to providing valuable services to this newest DCIA Member and supporting its contributions to the distributed computing industry.
Centale is an online marketing firm and technology solutions provider that empowers its clients with the next generation of communications products to revolutionize the online experience for end users. Centale owns and has proprietary rights to over 40 innovative products that enable its customers to establish branding and imaging to produce measurable marketing results.
Centale's premier product, the Catalyst EVR, is a next generation direct-to-the-desktop communications platform that enables Centale's clients to communicate with audio, video, rich media formats, flash, web animation, desktop animation, in a 24/7 real-time aspect, allowing end users to receive digital content in an 'alert' fashion, which gives them a near 100% open rate on all Internet communications.
Each Catalyst EVR network creates a database with messages from real-time analysis for targeted marketing campaigns featuring measurable results. Centale's state-of-the-art production studio and streaming media facilities create and deliver rich media content for on-demand distance learning, human resource communications, conferences, pay-per-view programs, rich video programs, and video press releases, all of which can be presented on a branded Catalyst EVR player.
Some of Centale's other proprietary products include a music-on-demand desktop application that allows users instantly to find and play any song or playlist – the first true peer-to-peer (P2P) radio system. It was recognized by Microsoft as a plug-in for Windows Media Player. Centale also has a unique instant messenger that allows users to simultaneously connect to AOL, ICQ, IRC, Jabber, MSN, Napster, Yahoo, and other networks.
All of its technologies are designed to support contextual pop-ups and banner ads to develop ongoing revenue streams. Centale is focused on providing its clients with innovative, cost-effective solutions for reaching targeted demographics with informative rich media content, leveraging media budgets with the best available technologies to produce the highest returns on investments. Centale is the scientific approach to marketing – Centale makes it easy to say yes.
MSFT Hosts RightsLine at IBC
DCIA Member RightsLine's Rights Intelligence System will be showcased at IBC in Amsterdam September 8th-13th.
RightsLine was invited by Microsoft to participate in its Digital Studio where attendees can see a demonstration of RightsLine's solution working with Microsoft's Connected Services Framework. CSF enables broadcast and film companies to harness the power of web services to build connected systems that move information across platforms and applications, streamlining the creation, management, and delivery of content.
The demonstration of RightsLine's application will show how organizations can ensure that rights for content usage can be optimally managed and how they can easily exploit content and owned rights to drive dramatic revenue growth.
To schedule a time to see this demonstration or meet with RightsLine's team at IBC please e-mail Steve Stebbins at sstebbins@rightsline.com or call 714-397-0561.
Oxford Analytica: P2P Growth Inevitable
Oxford Analytica concluded last week in its detailed report about the legal, technological, and business implications of the MGM v. Grokster ruling, that the Supreme Court's decision in this landmark Internet file-sharing case will have limited impact.
The academic research consultancy states that the significance of this case is a pyrrhic legal victory for old media companies, since it will neither eliminate nor diminish the widespread practice of downloading copyrighted material without paying fees to legitimate copyright holders.
Oxford Analytica analyzes the court ruling, winners and losers, practical implications, regulating the Internet, demand for content, and technological evolution in its article.
Among its conclusions is the fact, corroborated by DCIA industry data resource BigChampagne, that despite ongoing digital copyright enforcement efforts and an increasing host of alternative online content delivery platforms, average simultaneous P2P user levels continue to increase month-to-month and will continue to do so under current conditions where licensed content does not yet proliferate.
The group also contends that P2P technical solutions to date generally are still vulnerable to being disabled by hackers or skilled software users.
Report from CEO Marty Lafferty
 The DCIA firmly believes that peer-to-peer (P2P) copyright infringement can not only be dramatically reduced, but that P2P has the potential to serve as a more robust and efficient distribution channel than its predecessors for a greater diversity of content offered in a larger variety of ways.
But to do so will require leading entertainment companies, P2P software distributors, and technology solutions providers to collaborate rather than litigate or retreat from participating in fear of litigation.
Service-and-support firms need to be allowed to demonstrate that they can provide adequate safeguards through such techniques as P2P digital rights management (DRM) and micro-payment solutions, and entertainment content rights holders need to license their works for P2P distribution. Beyond that, P2P can also become an advanced communications medium and collaboration platform.
Fully addressing the P2P copyright infringement problem for the long-run will require a coordinated, multi-faceted approach that includes content and technology sector collaboration, cross-industry self-regulation, and targeted enforcement.
But first, appropriate activities for companies and consumers alike to use P2P in authorized ways for redistribution of copyrighted works still need to be established. Users need clearly to be shown appropriate ways to utilize P2P to access and share popular entertainment content. It should be deemed unacceptable, for example, that not a single major label track is yet available in a licensed format via the leading branded P2P software programs.
To be fully effective, viable solutions should address both the intentional authorized introduction by rights holders and their agents of secured files of copyrighted works – and their continued protection as they are redistributed from user-to-user no matter what software program(s) are being used; as well as the unauthorized introduction of unsecured files of such works by third parties including end-users – and their continued prevention from being redistributed in unauthorized form.
It is essential for any proposed solution's viability that it be agnostic in terms of working with current and foreseeable P2P applications, including open source clients and swarming transfer protocols.
Not to oversimplify this matter, but it seems to us that two fundamental tasks with respect to securely redistributing copyrighted works via P2P can be defined as:
A) To apply P2P DRM to a file (permitting rights-holder[s] to set price, usage terms, etc.), then create multiple variations of the secured licensed version of the file (supporting robust viral redistribution), and finally seed these initial authorized copies into the file-sharing environment in such a way that they will appear at the top of search results on major P2P software programs (using algorithms unique to each protocol) and other search engines; and
B) To support a system that essentially mirrors the decentralized architecture of P2P applications, extended to include torrent technologies which break files into smaller pieces, that blocks redistribution of unauthorized files of registered copyrighted works (without compromising consumer privacy or interfering with redistribution of other files), that reconstitutes usable quality-controlled portions of copyrighted-works files into licensed versions (to optimize the efficiency of a distributed computing environment), and that provides detailed specific measurement data regarding P2P traffic.
To date, DCIA Members have developed and deployed solutions needed for task 'A' for major P2P software programs including BearShare, eDonkey, Grokster, Kazaa, Morpheus, TrustyFiles, etc. as well as some search engines and websites, despite being hampered by a very limited amount of test content. Examples of companies actively engaged in this – and their solutions, include Altnet – TopSearch; INTENT MediaWorks – myPeer; Shared Media Licensing – Weed; Macrovision – Trymedia's ActiveMark; and Unity Tunes – Unified DRIV. P2P DRM, e-commerce, payment services, and related solutions providers now include an impressive roster of highly qualified firms such as Clickshare, Digital Containers, Digital Rivers, Javien, KlikVU, P2P Cash, Predixis, Relatable, RightsLine, Softwrap, SVC Financial, and Telcordia.
Their models work well mechanically and these companies are poised for enormous growth as the P2P channel matures. In terms of sales volume, which is obviously the more important issue, it is too early to draw conclusions, however, and results-to-date are skewed by not yet having licenses for major label or studio content and not yet having 'B' deployed. New solutions providers are now proposing credible approaches to accomplish 'B', which augur especially well for P2P's future. With these in place, delivery of licensed digital media content will evolve into a secure user-friendly model for super-distribution by means of most P2P networks.
More than anything, the private sector needs time and encouragement for 'B' to be adopted and implemented, and for 'A' to be fully developed with the participation of major entertainment rights holders.
Peer Impact & Live365 P2P Radio
Wurld Media announced last week that it has launched Peer Impact (PI) radio in partnership with Live365, the largest network of Internet radio stations. As a result, PI is now able to offer its members free access to thousands of stations powered by Live365, adding yet another interactive feature to its continuously expanding P2P service.
PI members can now listen to Internet radio while earning money as paid redistributors of digital content, due to PI's business model which rewards consumers for sharing their bandwidth. In addition, PI radio enhances a member's ability to discover new music, interact with fellow music enthusiasts and drive additional content sales on the network.
"Peer Impact Radio is just another example of the continued commitment to our members in offering them an ever-expanding variety of content and services," said Gregory Kerber, CEO of Wurld Media. "We are very excited about our partnership with Live365 and look forward to expanding our relationship into future offerings."
PI is the first P2P network to have secured licensing agreements with all four major record labels and which allows members to share songs legally via its network. Users simply leave their computers on, and if they are selected as a source of fulfillment for purchases over the network, they receive credit towards future purchases though PI.
US Ruling Already Stifling Innovation
Excerpted from PC Pro Report by Simon Aughton
The recent US Supreme Court ruling against P2P networks is already stifling innovation in file-sharing networks, The Guardian has discovered.
The ruling, which found P2P developer Grokster liable for illegitimate uses of its software, is deterring venture capitalists from injecting funds where they fear future legal action may make their investments worthless.
'Money has shifted into places which will avoid any conflict with the copyright holders,' said Professor Larry Lessig, described as the top American advocate for copyright reform.
The inability to secure funding will mean that many potential start-ups simply will not be able to start-up, even if they are trying to work completely within the law.
Meanwhile Grokster and the other 'corporate' P2P distributors will in all likelihood - like the original Napster before them - be closed down, but file sharing will continue with free, open source applications that leave no-one for the record labels to sue.
'The record companies have created an enemy they can neither beat nor negotiate with,' writes Ben Hammersley. 'An embrace of Napster at the start might have, in retrospect, made for a better strategy.'
Podcasting Advances Digital Media
Excerpted from Inside Digital Media Report by Phil Leigh
Podcasting is the most significant digital media technology to emerge from the lunatic fringe since Shawn Fanning's Napster. (Of course, it is not really the lunatic fringe, but instead merely a group composed of the disenfranchised.)
To the uninitiated the term 'podcasting' artificially tends to limit the profound implications of the concept. It's actually about the automatic delivery of digital media (e.g. audio and video files) to one's computer over the Internet on an 'opt-in' basis.
Here's how it works. Program originators typically, create, edit, and host their content on their own computers and websites. Normally they create new programming on a regular periodic basis, whether daily, weekly, or whatever.
Visitors to the hosting websites are permitted to become subscribers merely by clicking a standard XML feed termed Really Simple Syndication (RSS). Thereafter, the subscriber will find that each new program posted at the hosting website will be automatically delivered to his computer.
In the future we shall think it odd that we once watched popular TV shows only at the times that they were broadcast. Today's nearly ubiquitous weekly television guide will be a quaint anachronism. This is already becoming evident to owners of TiVos.
Future generations will also think it odd that we were once unable to search, and access, the programs that we wanted to watch via an engine like Google. When video files are abundantly available on the Internet, we will be able to search for what we want to watch not only by title, but also through the use of metadata.
Please click here for a free copy of 'Future Developments in Podcasting.'
BSA Finds Cavalier File-Sharing Attitudes
Excerpted from Digital Music News Report
The Business Software Alliance (BSA) has recently discovered a cavalier attitude towards file-sharing on college campuses. According to a recent survey by the trade organization, over two-thirds of students saw nothing unethical about swapping or downloading files on P2P networks. That includes software, movies, and music files, all of which are commonly mixed together in file-sharing environments.
Moreover, over one-half of students had no qualms with file-sharing in office environments. "This survey demonstrates how common illegal file-sharing is on campus and the fact that software piracy ethics are sadly lacking," said BSA vice president for public affairs Diane Smiroldo.
The fact that college students swap files in heavy numbers is no surprise. The original Napster, which was hatched at Northeastern University in Boston, was soon embraced by college students across the country. That propelled the application to stardom, with the rest "history." Now, over five years later, attitudes remain largely unchanged, though campuses have started to install industry-sanctioned music programs to stem the piracy tide.
But campus administrators have been reluctant to aggressively pursue student piracy, though universities remain mostly cooperative with RIAA enforcement efforts. Meanwhile, the BSA study revealed that about one-quarter of university faculty are also unconcerned with workplace piracy.
That points to a problem that goes far beyond college-aged students, with file-sharing also widespread among adults. The BSA survey involved 1,000 college students and 200 faculty members.
The Latest in Ring Tones
Excerpted from LA Times Report by John Horn
"Please go away, let me sleep, for the love of God!" It's not only a classic Chris Farley line from "Tommy Boy," but it's also the latest wave in cellphone ring tones.
Once limited to song samples and hip-hop clips, mobile phone ringers increasingly are featuring memorable movie quotes, including dialogue from titles as varied as "Napoleon Dynamite," "Office Space," "Without a Paddle" and "Meet the Fockers." The movie-related clips aren't always limited to the spoken cinematic word: For "Star Wars" fans, options include Darth Vader's heavy breathing, R2-D2's computerized chirps and Chewbacca's phlegmy roar.
Although the new trend may make customized cellphone ringers even more annoying than ever, they hold the promise of delivering new profits to the studios. Ring tones, as the personal ringers are called, have become a $3-billion worldwide boon for record labels, and Hollywood's studios and labor unions are now trying to figure out if the movie ring tone market is anywhere near that large.
"I think it's a great market," Steven Masur, an attorney whose firm, DCIA Member MasurLaw, specializes in wireless entertainment content, says of film-related ring tones. "People are quoting movie dialogue all the time. It seems like it could make a lot of money."
For the studios and the companies, or aggregators, that package movie dialogue ring tones, the economics are mouth-watering. Cellphone customers pay as much as $3 per ring tone, and the ringers also deliver free advertising to whatever is being sampled, be it a few bars from 50 Cent's "Just a Lil Bit" or Angelina Jolie inquiring, "Still alive, baby?" from "Mr. & Mrs. Smith."
Coming Events of Interest
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CPTWG Meeting – The next Copy Protection Technical Working Group (CPTWG) meeting will be held September 8th at the Sheraton Four Points Hotel in Los Angeles, CA. If you are interested in offering a presentation, please respond as soon as possible. Presentation guidelines can be found on the CPTWG website. If you wish to book a meeting room at CPTWG, please contact Brenda Coykendall at 310-649-7023 or via e-mail at brenda.coykendall@fourpointslax.com.
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Future of Music – September 11th-13th in Washington, DC. Since 2001, the FMC Policy Summit has played host to over 500 stellar panelists and speakers including musicians, business leaders, scholars, policymakers, legal experts, and advocates. Widely praised by advocates and industry alike, FMC's events have gained a reputation as a kind of Geneva where all sides in any number of contentious music industry fights can get together and play nice for a few days.
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Kagan Digital Media Summit – The theme of this year's conference to be held September 12th-13th at the Four Seasons / Mandalay Bay in Las Vegas, NV will be "New Opportunities for Monetizing Content." The DCIA will participate in the panel entitled "MIXING MEDIA'S POTION: Content Security Plus E-Commerce Fulfillment and On-Demand Delivery." DCIA Members receive a 50% discount on registration. Please contact DCIA Member Services leader Karen Kaplowitz for more information at 888-890-4240 or karen@dcia.info.
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Digital Hollywood Fall – "Transforming the Entertainment Industry." September 19th-21st at Loews Santa Monica Beach Hotel in Los Angeles, CA. The preeminent digital media and entertainment conference in the country. This year featuring a series of special University Project workshops. The DCIA will moderate "Track I: Next Generation P2P Music and Film - DRM, Paid for Pass-Along and Other Legal Distributed Computing Models and the Entertainment Industries." DCIA Members are also planning to host entertainment.
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Technology Law Institute – A Digital Media Rights panel will be featured September 20th at the Headquarters of the State Bar of Georgia, in downtown Atlanta, GA. Kilpatrick & Stockton's James Trigg will moderate with speakers Renay San Miguel from CNN, Kevin Lapidus from YellowBrix, and Marty Lafferty from the DCIA.
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OMMA East – In NYC on September 27th-28th, you can be a part of the most thought-provoking, timely and insightful marketing events of the year. Topics include ad networks, desktop and adware programs, local search, publishing consumer generated content, word-of-mouth online, RSS, podcasting, blogging, and integrated search planning. Click here to save 30% off of on-site registration.
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IP3 Awards – Join Public Knowledge in celebrating its 4th Anniversary and 2nd Annual IP3 (Intellectual Property, Information Policy & Internet Protocol) Awards September 29th at the Sewall-Belmont House in Washington, DC. Tickets are $100 per person for individuals/private corporations and $50 per person for academics/non-profits.
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Internet Telephony Conference & EXPO – DCIA Member Skype CEO and founder Niklas Zennström will deliver the keynote address at this major conference at the Los Angeles Convention Center, CA October 24th–27th. His address, which will be delivered live from London via Internet Telephony Videoconference, will take place Tuesday, October 25th at 12:15 PM PT. Click here to register for the show.
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