Five Giants in Technology Unite to Deter File Sharing

New York Times ^ | 01/05/04 | JOHN MARKOFF

[Iowegian]

SAN FRANCISCO - The technology and entertainment industries have long been at odds over the best way to secure intellectual property rights as digital technology advances.

Now, five of what industry executives say are the world's most powerful computer, cellphone and electronics companies are planning a new system for protecting digital music, video and software from illicit file sharing that they hope will at least narrow that gap.

A global consortium of technology companies is laying the groundwork for a campaign to convince Hollywood and the recording industry that it has finally found an acceptable way not just to limit the copying of music CD's and movie DVD's, but to protect digital content in the fast-growing market for hand-held devices capable of playing music, video clips and computer games while wirelessly connected to the Internet.

As these groups prepare to converge on Las Vegas this week for the annual Consumer Electronics Show - by far the biggest trade show for the makers of digital devices and the shapers of what goes into them - the fight over what has come to be known as "digital rights management'' is expected to move to the back burner, at least briefly.

That way everyone can celebrate the long-awaited recovery for the consumer electronics and entertainment businesses that manifested itself in their best holiday buying season since the late 1990's. But the issue will not go away. The consortium - known as Project Hudson and made up of Intel, Nokia, Samsung, Toshiba and Matshushita - plans to announce its new approach in early February to precede the Grammy music awards and the movie industry's Academy Awards ceremony, executives say. Unlike the system used to protect DVD content, an Internet-based wireless protection plan could permit users of hand-held devices to share movie or music files on a limited basis or permit files to be shared for promotional purposes. Users could also hear a song before deciding whether to buy it.

For the entertainment industry, the Internet has often been viewed primarily as a threat because it makes it possible to transmit copies of just about any original work that can be converted to digital code to just about anyone in the world. But it is increasingly being viewed more positively by some entertainment strategists, who recognize that the Internet's nature as an "always on" medium makes it possible to refine new "digital leashes" to help ensure that copy protection plans are not subverted.

Beyond trying to convince Hollywood and the recording industry that new technology can prevent illegal sharing of digital content without unduly restricting use, the consortium's approach represents an effort to control the standards and garner the rewards from developing a successful system. Project Hudson pits the new group against other copy protection systems being advanced by Sony and Royal Philips Electronics, Apple Computer, RealNetworks and others. But the most important target is probably Microsoft.

"They would say they are anti-Microsoft forces," a recording industry executive close to the companies said. "The alternative is to sign up with Redmond."

Microsoft, based in Redmond, Wash., is promoting its own plan, known as the Windows Media Rights Manager. But it has been held back, in part, by a legal challenge over infringing on software patents belonging to a smaller American company, Intertrust, which was acquired in late 2002 by Sony and Philips.

Fears in Hollywood and the recording industry over Microsoft's potential control had also stalled the software maker's thrust into the world of digital media. But those fears have lessened lately, in part because of the emergence of competing technologies from Apple, RealNetworks, Roxio and others. Digital content providers are increasingly finding ways to use some of Microsoft's technology without giving up control of their content.

[pabianice]

Below is a complete list of everything that has successfully been protected from theft:

1.

Good luck, "industry geniuses."

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[BushCountry]

They will spend a 100 million dollars on their ingenious solutions, only to have it solve by a 10 cent fix.

The great "copy-proof" discs for cds was broken with a black magic marker. Most software keys are broken with a change of a few bytes of data.

[BushisTheMan]

Another one of my predictions for 2004 was that DVD copying would cause a great deal of monetary loss for Hollywood. Boo hoo Hollywood.

[Dallas59]

"For the entertainment industry, the Internet has often been viewed primarily as a threat.."

And we gripe about China, Iran...