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Digital Rights Management Continues To Divide Content Development And Tech Industries
More than three years have passed since Napster highlighted the challenges facing digital content management in the Internet Age. Since then, according to In-Stat/MDR (http://www.instat.com), the exponential growth of people accessing the Web has further contributed to an increase in the illegal access and distribution of proprietary content. The high-tech market research firm reports that the widespread availability of digital audio and video files, coupled with the popularity of file-sharing software from companies like Kazaa, has resulted in an inter-industry schism in the search for a viable Digital Rights Management (DRM) solution. The continuing quest for a workable DRM solution has pitted the content development industry, primarily consisting of companies in the recording industry and the movie industry, against the information technology (IT) industry. While the content development industry's goal is to stop all "unauthorized" online access and distribution of their proprietary content, they also maintain that they are committed to online distribution, but only in conjunction with a secure DRM solution. Content developers underline that DRM is a very serious issue, and point out that: - Between 1999 and 2001, worldwide record industry revenues dropped by almost $5 billion. The industry places the blame for this decrease squarely on the spread of illegal file-sharing services and digital audio "piracy." - Two of this summer's most-anticipated movies, "Spider- Man" and "Star Wars: Episode II -- Attack of the Clones," showed up online even before their scheduled opening dates in theaters. Meanwhile, the IT industry is also concerned about DRM, but it is, at the same time, very interested in the potential of new, online distribution technologies. Many technology executives have noted that if there ever was a "killer app" for broadband services, it was Napster. In addition, IT industry executives point out that: - They acknowledge that content "piracy" is occurring and needs to be stopped. At the same time, they also support current "fair use" laws that permit consumers to copy and share a limited amount of content with others. - The content development industry always seems to attack new technologies and distribution channels. From playing recorded music on the radio to playing movies on a VCR, the content development industry regularly tries to stop new technologies that ultimately end up being an important and profitable part of their business model. While significant differences about the adoption of new technologies will continue to divide the two industries, In-Stat/MDR expects their broader positions about DRM to drift slightly closer together over the next several years. However, fundamental differences between the industries regarding the "fair use" of proprietary content and the specifics of how to institute and enforce DRM architectures guarantee that the next few years will be full of lawsuits and legislative maneuvering.
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