DRM Enabled Digital Content Distribution:
Working Out The Kinks

Nowhere are these challenges and complexities more apparent than in the commercial distribution of digital content. Napster proved that digital works could be easily copied and redistributed. The ensuing litigation underscored the fact that content owners would not hesitate to protect their valuable copyrights. The reaction from consumer advocates and Web pundits was equally strong, fueled by expectations by some that everything on the Internet should be heavily price discounted, if not completely free of charge. The battles between the content owners and other P2P file sharing services such as Kazaa have continued with no end in sight. This legal skirmishing has put a spotlight on the Digital Rights Management (DRM) technology designed to control digital content.

DRM is a set of standards and technologies that allows digital content to be distributed while also being protected, managed and tracked. DRM helps answer basic questions about the user’s rights to digital content, whether in the entertainment and publishing industries or in the corporate world, and provides technological means to offer and enforce the rights: What is it; are you authorized to give it to me; is it what it claims to be; what rights do I have to it; and what conditions must I meet to be granted those rights?

DRM technology was initially met with great anticipation. The content and IT industries hoped it would provide an instant solution for those seeking to distribute valuable digital content while maintaining ownership and control. This has proven to be overly optimistic, as hurdles such as content owner fear created by Napster have delayed and frustrated market growth. So where has this left the digital content distribution market? Has the excitement over the promise of digital distribution died along with the dot-coms, or does this nascent field hold long term potential? To answer these questions, we’ve taken a look at the current state of the digital content industry, highlighting work that is now underway to make digital distribution of content a reality for consumers and content owners in the near future.

While the public debate continues, DRM technology providers have been quietly addressing the challenges faced in realizing the potential of the digital content market. This work is focused around three main efforts:

Working with content owners to create the most viable business and revenue models

Educating consumers about the convenience of digital delivery and the long-term ill-effects of unrestricted copying and redistribution

Collaborating with other companies in the DRM value chain to establish standards for DRM technology interoperability

Next Page: Business Models and Enlightened Consumers