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Showcasing a National Experience :
Development of DRM Standards
Kim, Won-Hak
Korea Software Copyright Committee
www.socop.or.kr
Contents
1
Proposal to Dismantle DRM
2
Scope of DRM
3
Legislation on DRM in Korea
4
Cases on TPMs
5
RMI
6
Application of DRM on Music
7
DRM on Other Types of Works
8
Tasks for DRM Standardization
2
Proposal to Dismantle DRM (1)
 Steve Jobs demanded record companies to dismantle DRM
(February 6, 2007)
 The application of Apple’s DRM system is a prerequisite for music sales
- Apple protects music copyrights through DRM called ‘FairPlay’ by
agreeing licenses for the distribution of music from the ‘Big 4’
(Universal, Sony BMG, Warner, and EMI) that dominates 70 % of the world
music market
 Less than 3% of iPods use DRM applied music; the remaining 97% of mp3
files are without DRM
- It is not possible to put limitations on iPod users through DRM
3
Proposal to Dismantle DRM (2)
 Of the 4 Big global record companies, only EMI has chosen to
provide music without DRM.
 According to Information Week, which reported data from Jupiter
Research:
- ‘Research on Entrepreneur of European Record Companies’ shows
that 62% replied that dismantling DRM will promote the distribution
of digital music
- 54% replied that DRM is an excessive restraint
- 56% disagreed with the statement that ‘DRM is necessary for online
music’ and only 11% replied that ‘Dismantling DRM will impact their
business negatively’
4
Proposal to Dismantle DRM (3)
Proposal to Dismantle DRM by ‘Bugs Music’ in Korea
 Dismantled DRM and introduced a service to download all music
within Bugs Music for a monthly fee of $4
- “Bugs Music will temporarily dismantle DRM for the convenience of
customers until the interoperability of MP3 files are guaranteed”
- Although Bugs Music have mentioned that they dismantle DRM for
the convenience of customers, but it was due to low sales of DRM
applied music
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Scope of DRM (1)
Definition and Types
 DRM technology is a system that restrains the illegal copying or
distribution of digital contents by utilizing encryption technology
 Generally the function of DRM technology can be categorized into
protection, management and distribution
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Scope of DRM (2)
7
Scope of DRM (3)
DRM
 WCT Provision definition
- The term "technological protection measures" means the measures to
effectively protect the program copyrights through an input of identification
numbers or authentication numbers, an encryption with respect to
programs, and other key technologies or devices, etc. to protect the rights
 Obligations concerning Technological Measures of WCT Art.11
- Contracting Parties shall provide adequate legal protection and effective
legal remedies against the circumvention of effective technological
measures that are used by authors in connection with the exercise of their
rights under this Treaty or the Berne Convention and that restrict acts, in
respect of their works, which are not authorized by the authors concerned
or permitted by law
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Scope of DRM (4)
RMI
 WCT Provision definition
- “rights management information” means information which identifies the work, the
author of the work, the owner of any right in the work, or information about the terms
and conditions of use of the work, and any numbers or codes that represent such
information, when any of these items of information is attached to a copy of a work or
appears in connection with the communication of a work to the public
 Obligations concerning RMI of WCT Art. 12
- Contracting Parties shall provide adequate and effective legal remedies against any
person knowingly performing any of the following acts knowing, or with respect to civil
remedies having reasonable grounds to know, that it will induce, enable, facilitate or
conceal an infringement of any right covered by this Treaty or the Berne Convention
(ⅰ) to remove or alter any electronic rights management information without authority
(ⅱ) to distribute, import for distribution, broadcast or communicate to the public,
without authority, works or copies of works knowing that electronic rights
management information has been removed or altered without authority
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Legislation on DRM in Korea (1)
Legislation on DRM
 Computer Programs Protection Act : Software
 Copyright Act : Copyrighted works
 Act for Online Digital Content Industry Development : Digital content
 Act for Promotion of the Game Industry : Games
DRM & Industry Promotion




Industrial Development
Technical Development
Training Professionals
Standardization
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Legislation on DRM in Korea (2)
DRM Protection
 Under the current Act, the circumvention of TPMs is prohibited
 Art. 30, Computer Programs Protection Law
 Art. 124, Copyright Act
 Art. 18, Act for Online Digital Content Development
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Legislation on DRM in Korea (3)
Act for Promotion of the Game Industry
 There is no separate provision on TPMs but related policy is under
progress
 Art. 13, Act for Promotion of the Game Industry (Protection of
Intellectual Property Rights)
② The Government can promote the following projects for protecting
the intellectual property right of games
1. Technical protection of games
2. Implementation of showing RMI, which identifies games and the
developer of game
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Cases on TPMs (1)
The term "technological protection measures" means the measures to
Current protect the program copyrights through an input of identification numbers or
provisions authentication numbers, an encryption with respect to programs, and other
key technologies or devices, etc. to protect the rights efficiently
Current Provisions
Judicial Decision
Recognizes copy control type
Korean Supreme Court’s Decision :
technological protection
Access control measures can be
measures only
protected if they have an equal
effect to copy protection
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Cases on TPMs (2)
Supreme court case
Activity that enables illegal game CDs with no access code
to run on the ‘PlayStation2’ is included in the activities that
circumvent TPMs stipulated in CPPA, Art. 30.2
( 2004do2743, Feb 24, 2006 )
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Cases on TPM (3)
Judicial decision in Australia
1. Case on Mod Chip in The Sony PlayStation 2
2. Australian Federal Court decided that the PS2 Mod Chip is not
designed to circumvent the code inserted by Sony to prevent
illegal copying of game CD
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Cases on TPM (4)
Australia vs. Korea
 Different results on same legal issue
 Due to difference of regulation
Changes after FTA
 Australia: Revised related provisions after the AUSFTA
 Korea: Laws not revised since the conclusion of FTA talks
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RMI (1)
Definition
 RMI means the information falling under any of the following items or
the numerals or symbols indicating the said information, and each
information is attached to the original, or its reproductions of the works,
stage performances, phonograms, broadcasting, or database, or is
accompanied with its public performances, broadcasting or transmission
Provision
 Art. 29, CPPA, Art. 124, Copyright Act, Article 17, Act for Online
Digital Content Industry Development prohibits removal or
alteration of RMI
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RMI (2)
Act for Online Digital Content Industry Development
Art. 18.1 of the Act for Online Digital Content Industry Development regulates
“Unauthorized persons may not infringe the rights of competitors and cause
them to incur losses in terms of business profits by reproducing or
transmitting all or part of the online contents created and displayed through
the efforts of other persons”
Case
If the production date and display date are not indicated in the cartoon. it is
excluded from the subject matter of protection regulated in Art. 18.1 of the Act
for Online Digital Content Industry Development. Therefore, reproducing and
transmitting the cartoon does not violate Art. 18.1 (2004do9073, Feb 10, 2006)
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Application of DRM on Music (1)
Current Status of Closed DRM
 Closed DRM has been adopted by 2 of the 3 major Korean music
service providers
- Music provided by each online music site with their own DRM are
not allowed in other devices
 Promotion of the digital content industry can be impeded by the abuse of
market-dominant position of using Closed DRM as a barrier for market
access
- DRM interoperability can be impeded by complicated technology, strategic
use of non-compatible DRM, and a diversity of business model
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Application of DRM on Music (2)
iPods Case
 In France, Apple denied the request to license ‘FairPlay’, DRM technolody
of iPod
- Respect to the abuse of the market-dominant position of Apple, the Fair
Trade Commission decided the Apple’s DRM as a non necessary element
 According to the ‘Digital Copyrights Law’ legislated in France in 2006:
- Providers of DRM systems should provide the necessary technical
documentation to any party needing it to ensure that interoperability. In
practice, this would mean that makers of software or hardware players
could request information from providers of DRM-protected music or video
in order for that music or video to be playable on their system
- The publication of the source code or technical documentation of systems
implementing DRMs is not prohibiting by the protection granted to DRMs
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Application of DRM on Music (3)
Application of DRM in the Korean Music Market
 Before 2005, the mobile phone service market was the main
market for the digital music industry
- The online market was then promoted by the emergence of online
music services and charged P2P systems
- The two companies which led the application of DRM used closed
DRM to let music be played on particular devices
- Claimed that the DRM standard was premature and that service
providers must be paid with incentives to elevate the payment
based market
 Therefore, they used closed DRM as a barrier to market access so
as to maintain their ‘temporary leading position in the market’ and
to minimize market competition
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Application of DRM on Music (4)
Application of DRM in Korean Music Market (cont’d)
 Some online music service providers requested the interoperability
of DRM
- Due to the closed DRM policies of mobiletelecommunication
companies, users cannot play files they legally purchase from
online music service providers like Bugs or MaxMP3 on their
mobile phones.
- They argue that such activity is non-fair trade behavior prohibited
by the Unfair Trade Law
22
Application of DRM on Music (5)
Application of DRM in Korean Music Market (cont’d)
 ‘EXIM’, a DRM inter-operational technology standard, developed by ETRI
 The S company first developed an inter-operational solution by utilizing
EXIM
- DIMF [digital music forum], an association of online music providers,
selected Inka Entworks as a developer of DRM inter-operational solutions for
follow up
 The K company began development of related technology to fit the
requirements of the plan suggested by the Ministry of Information and
Communication
 Mobile telecommunication companies who did not use their own DRMs had
no problem with DRM inter-operational issues.
23
Application of DRM on Music (6)
24
DRM on Other Types of Works
 Due to the recent rapid growth of the mobile technology market, digital
broadcasting market, and DVD market, DRM technology development is
progressing focused on the related platforms
 For a DRM standard, various kinds of standardization organizations such
as SDMI, OeBF, DVD Forum, IDRM, DOI, and MPEG-21 arose around
year 2000
 Among standardization organizations, OMA (Open Mobile Alliance) and
MPEG-21 are the most active:
- OMA was established in June of 2002 to set up mobile standards. OMA
announced Mobile DRM v2 in 2004 and continues the standardization
processes
- MPEG-21 aims at producing various kinds of comprehensive multimedia
framework specifications for various kinds of digital content services and
currently it is the most active organization
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Task for DRM Standardization (1)
 Technical difficulties for various kinds of digital contents
- As the varied, individual DRM content are currently serviced, there are
difficulties in technology and policy in transforming them into another kind of
new DRM content
- Vulnerability due to the disclosure of security technology and restrictions in
applying various kinds of security mechanisms could follow because of the
characteristics of DRM
 Currently there is no dominant DRM standard and DRM is closely related with
business
 The basic framework of government support for DRM standardization exists
by industry
 The plan for standardizing various digital contents must progress with a longterm view
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Task for DRM Standardization (2)
 OECD and other technical and institutional advisors of each country admit
the role of market and demand the careful act of government
- Promote the formation of standard by competitions in the market
- Limiting government role of sanction against the abuse of market-dominent
service providers that acquired de facto standards
- In order to attract investments in initial stage of market, closed DRM should
be partially allowed
 DRM standards must be decided in the market and government should
support this standardization process
- Applying the Unfair Trade Law to those abusing their market-dominant
positions by using closed DRMs
- Allowing analysis of competing companies’ DRM for interoperability and
R&D
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Thank You !
galgalaw@socop.or.kr
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