Can filesharers be triggered by economic incentives? Results of an experiment

Illegal filesharing on the internet leads to considerable financial losses for artists and copyright owners as well as producers and sellers of music. Thus far, measures to contain this phenomenon have been rather restrictive. However, there are still a considerable number of illegal systems, and users are able to decide quite freely between legal and illegal downloads because the latter are still difficult to sanction. Recent economic approaches account for the improved bargaining position of users. They are based on the idea of revenue-splitting between professional sellers and peers. In order to test such an innovative business model, the study reported in this article carried out an experiment with 100 undergraduate students, forming five small peer-to-peer networks.The networks were confronted with different economic conditions.The results indicate that even experienced filesharers hold favourable attitudes towards revenue-splitting.They seem to be willing to adjust their behaviour to different economic conditions

Scenarios and system dynamics of mobile peer-to-peer content distribution

Vertaisverkkoteknologian menestys kiinteissä verkoissa on johtanut vertaisverkkototeutuksiin myös mobiileissa verkoissa. Mobiilin vertaisverkkoteknologian tulevaisuuden suhteen on tosin vielä paljon epävarmuutta, koska operaattorit ja muut sidosryhmän jäsenet, jotka kärsivät laittoman tiedostonvaihdon seurauksista kiinteän verkon puolella, pelkäävät saman tapahtuvan myös mobiileissa verkoissa. Täten he saattavat yrittää estää mobiilin vertaisverkkoteknologian kehittymistä. On myös epävarmaa onko mobiilille vertaisverkkoteknologialle tarvetta loppukäyttäjän näkökulmasta, eritoten kun mobiililaitteiden suorituskyvyt ovat huomattavasti alhaisempia kuin kiinteiden. Tämä diplomityö keskittyy mobiilin vertaisverkon sisällönjakeluun. Sisällönjakelu on jaettu tiedostonvaihtoon, sisällön suoratoistoon ja kaupallisiin sisältöjärjestelmiin. Työ antaa näkemystä mobiilin vertaisverkon sisällönjakelun olennaisimpiin skenaarioihin, sidosryhmän jäseniin ja heidän kannustimiin. Mobiilin vertaisverkon sisällönjakelun epävarmuutta rajataan käyttämällä skenaarioanalyysiä ja mallinnetaan systeemidynamiikalla. Olennaisimmat skenaariot rakennetaan Schoemakerin metodilla ja niiden mallinnusta yritetään systeemidynamiikan keinoin. Tuloksena saadaan neljä eri skenaariota, jotka on kehitetty brainstorming -tilaisuuksissa ja kirjallisuuskatsauksessa löydettyjen avaintrendien ja -epävarmuustekijöiden perusteella. Skenaarioiden kvantitatiivisen mallinnuksen sijaan mallinnetaan skenaarioihin perustuvan mobiilin vertaisverkon sisällönjakelujärjestelmän dynaamista käyttäytymistä. Vaikka joitakin mobiilia vertaisverkkoteknologiaa hyödyntäviä sovelluksia on jo kehitetty ja käytössä, sekä aihetta tutkittu laajasti, vieläkin on epävarmaa mikä teknologian vaikutus tulee olemaan. Tämä diplomityö esittää mahdollisia vaikutuksia teknologialle ja antaa lähtökohdan tulevalle mobiilien vertaisverkon sisällönjakelujärjestelmien kvantitatiiviselle mallinnukselle. Systeemidynamiikka on toteuttamiskelpoinen vaihtoehto tavallisemmille mallinnustekniikoille, kuten taulukkolaskentamallinnukselle, jonka etuna on järjestelmän takaisinkytkentäsilmukkojen mallintaminen. Kun mobiili vertaisverkkoteknologia kehittyy, enemmän dataa tulee saataville ja vaihtoehtoisten systeemidynamiikkamallien rakentaminen on suositeltavaa.The success of peer-to-peer technology in the fixed networks has led to peer-to-peer implementations in the mobile networks as well. There is, however, a lot of uncertainty regarding the future of mobile peer-to-peer technology as the operators and other stakeholders that were affected negatively by illegal peer-to-peer file sharing in the fixed networks are afraid that it might happen in the mobile domain as well. Thus they might try to prevent mobile peer-to-peer technology from emerging. There is also the question whether there really is a need for peer-to-peer technology in the mobile domain from the end users' perspective, especially as the mobile device capabilities are considerably lower compared to the fixed ones. This thesis concentrates on mobile peer-to-peer content distribution. Content distribution is divided to file exchange, content streaming and commercial content systems. The thesis provides insight to the most relevant scenarios, stakeholders and their incentives related to mobile peer-to-peer content distribution. The uncertainty regarding mobile peer-to-peer content distribution will be bounded using scenario analysis and modeled using system dynamics. The most relevant scenarios regarding mobile peer-to-peer content distribution are constructed using Schoemaker's method and modeling of these scenarios is attempted with system dynamics. As a result four different scenarios are developed based on the key trends and uncertainties discovered during the literature review and brainstorming sessions. Instead of modeling the scenarios quantitatively, the dynamic behavior of a mobile peer-to-peer content distribution system based on the scenarios is modeled with system dynamics. Although there are some mobile peer-to-peer content distribution applications already developed and used, and the topic is considerably researched, it is still uncertain what the outcome of the technology will be. This thesis presents possible outcomes for the technology and provides a starting point for further quantitative modeling of mobile peer-to-peer content distribution systems. System dynamics provides a viable alternative to more common modeling techniques such as spreadsheet modeling, with a distinctive benefit of modeling the feedback loops in a system when used proficiently. As the mobile peer-to-peer technology evolves, more data becomes available and the construction of alternative system dynamics models is encouraged

Digital Rights Management and Consumer Acceptability: A Multi-Disciplinary Discussion of Consumer Concerns and Expectations

The INDICARE project – the Informed Dialogue about Consumer Acceptability of DRM Solutions in Europe – has been set up to raise awareness about consumer and user issues of Digital Rights Management (DRM) solutions. One of the main goals of the INDICARE project is to contribute to the consensus-building among multiple players with heterogeneous interests in the digital environment. To promote this process and to contribute to the creation of a common level of understanding is the aim of the present report. It provides an overview of consumer concerns and expectations regarding DRMs, and discusses the findings from a social, legal, technical and business perspective. A general overview of the existing EC initiatives shows that questions of consumer acceptability of DRM have only recently begun to draw wider attention. A review of the relevant statements, studies and reports confirms that awareness of consumer concerns is still at a low level. Five major categories of concerns have been distinguished so far: (1) fair conditions of use and access to digital content, (2) privacy, (3) interoperability, (4) transparency and (5) various aspects of consumer friendliness. From the legal point of view, many of the identified issues go beyond the scope of copyright law, i.e. the field of law where DRM was traditionally discussed. Often they are a matter of general or sector-specific consumer protection law. Furthermore, it is still unclear to what extent technology and an appropriate design of technical solutions can provide an answer to some of the concerns of consumers. One goal of the technical chapter was exactly to highlight some of these technical possibilities. Finally, it is shown that consumer acceptability of DRM is important for the economic success of different business models based on DRM. Fair and responsive DRM design can be a profitable strategy, however DRM-free alternatives do exist too.Digital Rights Management; consumers; Intellectual property; business models

The Balancing Act of Copyright: The Copyright Laws of Australia and the United States in the Digital Era

The digital era has posed a unique challenge to copyright law. The emergence of the information technology revolution and the internet has increased the ability and the willingness of copyright users to copy and distribute protected material. In response to this phenomenon copyright owners have pushed for stronger laws to protect their content from infringement. Their success has prompted a strong counter reaction from copyright users and consumer groups. This paper seeks to examine how changes to Australian and US copyright law have resulted in an imbalance between owners and users and whether the traditional safeguards of fair dealing and fair use have had any utility in the digital era. As common law nations, the copyright laws of both jurisdictions are derived from the Statute of Anne 1710 of the United Kingdom which sought to balance the interests of users and owners so as to maximise the social and economic benefits from the creation and use of intellectual materials. Both the United States and Australia have long been committed to balancing the interests of stakeholders in copyright. This balance looks to be increasingly imperilled in the digital era This paper was prepared in November 2003 as part of the course requirements for International Intellectual Property with Professor Madhavi Sunder. Subsequent to the completion of the paper Australia and the United States concluded the Australia-United States Free Trade Agreement (AUSFTA) which required some changes to the Australian Copyright Act 1968. Where relevant those changes have been noted

The Balancing Act of Copyright: The Copyright Laws of Australia and the United States in the Digital Era

The digital era has posed a unique challenge to copyright law. The emergence of the information technology revolution and the internet has increased the ability and the willingness of copyright users to copy and distribute protected material. In response to this phenomenon copyright owners have pushed for stronger laws to protect their content from infringement. Their success has prompted a strong counter reaction from copyright users and consumer groups. This paper seeks to examine how changes to Australian and US copyright law have resulted in an imbalance between owners and users and whether the traditional safeguards of fair dealing and fair use have had any utility in the digital era. As common law nations, the copyright laws of both jurisdictions are derived from the Statute of Anne 1710 of the United Kingdom which sought to balance the interests of users and owners so as to maximise the social and economic benefits from the creation and use of intellectual materials. Both the United States and Australia have long been committed to balancing the interests of stakeholders in copyright. This balance looks to be increasingly imperilled in the digital era This paper was prepared in November 2003 as part of the course requirements for International Intellectual Property with Professor Madhavi Sunder. Subsequent to the completion of the paper Australia and the United States concluded the Australia-United States Free Trade Agreement (AUSFTA) which required some changes to the Australian Copyright Act 1968. Where relevant those changes have been noted

Digital piracy

Die vorliegende Arbeit behandelt das Thema Digitale Piraterie von Musik und Filmen im Internet aus einer gesamtheitlichen Sicht. Dies umfasst die soziale, technische, rechtliche als auch ökonomische Perspektive, wobei der Fokus auf letztere liegt. Die Gründe für das unrechtmäßige Herunterladen von urheberrechtlich geschützten Inhalten und die Etablierung dieses Verhaltens als ein weltweit verbreitetes Massenphänomen bildet den Schwerpunkt des Kapitels, das die soziale Perspektive dieser Thematik behandelt. Die technische Perspektive liefert nicht nur einen Einblick in DRM Systemen (Systeme zur digitalen Rechteverwaltung) sondern erörtert zudem Systeme, mit deren Hilfe Piraterie überhaupt betrieben wird. Jede Auseinandersetzung mit einer Thematik die über Recht und Unrecht Aussagen trifft benötigt als Rahmen eine Erörterung der hierfür zugrundeliegenden Gesetze. Diese wird im Kapitel "Rechtliche Perspektive" abgehandelt. Im Hauptteil der Arbeit wird zunächst die gegenwärtige Struktur und Vorgehensweise der Musik und Filmindustrie erörtert. Danach wird ein Rahmenkonzept für zukünftige, an die technologischen Fortschritte und Wünsche der modernen Kunden angepasste Geschäftsmodelle geschaffen. Aus diesem Konzept heraus werden insgesamt sieben Geschäftsmodelle präsentiert. Auf die ersten drei Modelle wird hierbei der nähere Fokus gelegt, da sie den gesamten Markt betreffen. Die restlichen vier Modelle sind als Nischenprodukte angedacht, die für einen bestimmten Teil des Marktes interessant sein werden. Abschließend folgen ein Fazit und eine allgemeine Empfehlung an die Musik und Filmindustrie.This master thesis deals with the issue of digital piracy of music and film in the internet from a broad perspective. This includes the social, technical, legal and economic perspective with a focus on the latter. The emphasis of the chapter dealing with social issue lies on the reasons for illegitimate download of copyrighted material and the establishment of this behaviour as a worldwide phenomenon. The technical perspective not only delivers an insight into DRM (digital rights management) systems, but also looks into systems which are used to pirate in the first place. When dealing with a topic about rightful and unlawful behaviour then it is inevitable to look into laws and policies regulating these issues. This will be done in the chapter dealing with the legal perspective. The main focus of this work lies with the economic perspective. This chapter will begin with an analysis of the current structure and practise of the music and the film industry. Later on a framework will be created to derive innovative business models more fitting to the technological developments of recent times and the requirements of modern customers. Out of seven business models presented, the first three will be looked up in detail since they are meant to be adapted to the whole market, whereas the other four models suit only certain segments of the market. Finally the thesis finishes with a conclusion and a general recommendation for the music and film industry

Pirates and Samaritans: A Decade of Measurements on Peer Production and their Implications for Net Neutrality and Copyright

This study traces the evolution of commons-based peer production by a measurementbased analysis of case studies and disusses the impact of peer production on net neutrality and copyright law. The measurements include websites such asSuprnova. org, Youtube.com, and Facebook.com, and the Peer-to-Peer (P2P) systems Kazaa, Bittorrent, and Tribler. The measurements show the two sides of peer production, the pirate side with free availability of Hollywood movies on these P2P systems and the samaritan side exhibited by the quick joining of 400,000+ people in a community to organize protests against events in Burma. The telecommunications and content industry are disrupted by this way of peer production. As a consequence, revenues of both industries are likely to suffer in the coming years. On the other hand, innovative P2P systems could win the battle on merit over classical distribution technologies. As a result, a continuation is expected of both legal actions against P2P and possible blocking actions of P2P traffic, violating net neutrality. It is argued that this hinders innovation and causes a large discrepancy between legal and user perspectives. A reform of copyright laws are clearly needed, otherwise they will be unenforceable around 2010. Key words: P2P, collaboration, commons-based peer production, copyright

Digital Rights Management and Consumer Acceptability: A Multi-Disciplinary Discussion of Consumer Concerns and Expectations

The INDICARE project – the Informed Dialogue about Consumer Acceptability of DRM Solutions in Europe – has been set up to raise awareness about consumer and user issues of Digital Rights Management (DRM) solutions. One of the main goals of the INDICARE project is to contribute to the consensus-building among multiple players with heterogeneous interests in the digital environment. To promote this process and to contribute to the creation of a common level of understanding is the aim of the present report. It provides an overview of consumer concerns and expectations regarding DRMs, and discusses the findings from a social, legal, technical and business perspective. A general overview of the existing EC initiatives shows that questions of consumer acceptability of DRM have only recently begun to draw wider attention. A review of the relevant statements, studies and reports confirms that awareness of consumer concerns is still at a low level. Five major categories of concerns have been distinguished so far: (1) fair conditions of use and access to digital content, (2) privacy, (3) interoperability, (4) transparency and (5) various aspects of consumer friendliness. From the legal point of view, many of the identified issues go beyond the scope of copyright law, i.e. the field of law where DRM was traditionally discussed. Often they are a matter of general or sector-specific consumer protection law. Furthermore, it is still unclear to what extent technology and an appropriate design of technical solutions can provide an answer to some of the concerns of consumers. One goal of the technical chapter was exactly to highlight some of these technical possibilities. Finally, it is shown that consumer acceptability of DRM is important for the economic success of different business models based on DRM. Fair and responsive DRM design can be a profitable strategy, however DRM-free alternatives do exist too