aegisdrm white paper i - preventing piracy in music and video

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    DRM White Paper 1

    Copyright 2004-2005 AegisDRM Ltd. All Rights Reserved.

    AegisDRM Ltd l ogos, and trademarks or registered trademarks of AegisDRM Ltd or its subsidiaries in the EU, United States and other countries.

    Copyright 2004 AegisDRM Ltd. All Rights Reserved.

    Other names and brands may be claimed as the property of others. Information regarding third party products is provided solely for educational purposes.AegisDRM Ltd is not responsible for the performance or support of third party products and does not make any representations or warranties whatsoever regardingquality, reliability, functionality, or compatibility of these devices or products.

    Preventing Piracy in Music and Video 20 August 2005

    In this paper we discuss. Preventing Piracy in Music and Video using Digital Rights Management.This is a practical, jargon-free guide which provides both an overview andenough technical information to allow effective and informed decisionmaking.

    WhyWhat the issues and losses are. Are there alternatives? How much of anissue are these losses?

    When

    At what stage should you be thinking of DRM if you are implementing anon-line music or video service?

    WhatWhat should you take into consideration when choosing a system?

    How How do you implement a system? We give a detailed, jargon-free, end toend description of the whole process.

    Dr Mark Baker.August 05.

    DRM White Paper I

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    DRM White Paper 2

    Executive Summary

    Overview

    If you are concerned about preventing piracy of your music and video content, a new

    class of technology products allow simple, non-invasive protection of content from

    sharing and piracy.

    Music publishers simply cannot remain competitive working in an environmentin which the ethos is Buy once copy and share forever.

    Digital music and Video represent fields of tremendous opportunity the ability tosignificantly reduce capital investment required to launch new products, to reduce

    distribution costs, reduce the cost of piloting and testing new markets, remove the

    need for physical stock or inventory and monetize back catalogue.

    The risks are significant from casual copying and piracy are significant, fully

    quantified and exist immediately the digital content is distributed in any form on CD,

    DVD or any other channel.

    Offering downloads without DRM

    Digital Rights Management is the only effective way of minimizing these risks while

    maximizing monetization and control. To avoid these problems in 2005 Time Warner

    Inc. chose to protect over 40,000 tracks released through the TuneTribe music store

    using AegisDRMs Multimedia Protector.

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    Business Challenge

    The challenge is to exploit that opportunity to build market share and overall market

    size while overcoming the issues of music and video piracy and peer-to-peer sharing.Those take up the challenge at the right time, supported by the correct technologies

    stand to gain while those who dont adapt are already suffering and will lose share

    and profits - or go under.

    Why Protect? What are the threats?

    The threats fall into two broad categories, those from casual downloading, from

    networks such as Kazaa and Madster and those from organised piracy.

    In terms of music, casual downloading and peer-to-peer networks are responsible for

    3.6 billion songs illegally downloaded each month in the United States1. In the UK

    sales predicted sales of 1.5bn on recorded music between 2002-2004, were

    reduced to 858m because of downloads according to the British Phonographic

    Industry2. Smaller music and video publishers are significantly more vulnerable as

    they lack the established retail outlets and marketing resources to push their

    legitimate hardcopy content in competition with free, exchanged files.

    In terms of organised piracy 1.2 billion pirate music discs were sold in 2004 - 34% of

    all discs sold worldwide3. Sales of pirate music exceed the legitimate market in a

    record 31 countries in 2004 - including China (85% of sales are pirated copies), India

    (56%), Indonesia (80%), Mexico (60%), Pakistan (59%) and Russia (66%)3.

    Without DRM typical revenue losses for a site selling 50,000 tracks a month at 99

    each will therefore be $28,314 per month. ROI is therefore 3000%

    Without DRM typical revenue losses for a site selling 1,000,000 tracks a month at

    99 each will therefore be $566,280 per month. ROI is therefore 12000%

    What?

    What should you take into consideration when choosing a system?

    (1) Will you DRM protected files work on the largest number of portable devices?AegisDRM does.

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    (2) Its it ready, tried and tested with a major outlet like TuneTribes use ofAegisDRM?

    (3) Will your DRM provider promise to do the job right first time, every time?AegisDRM do.

    (4) Does your DRM provider provide a business critical service? Do they offer a"first time done right" guarantee so that you'll never pay for the same servicetwice? AegisDRM do and believe in doing the job right the first time, everytime. This means they don't intend to have to return to fix the same thingtwice and if for some reason they do, you don't pay, no matter what it takes,including parts, labor, and anything else necessary.

    (5) Does your DRM provider provide an "up-time" guarantee? If your server goesdown as a result of our oversight or error with AegisDRM there is no chargefor the time, materials, etc, to bring you back up and prevent the problem fromever occurring again. You may have paid to install a DRM system then paid

    to fix it then paid to fix it again? While some companies profit two or threetimes over for "emergency service," AegisDRM insures it doesn't happen inthe first place! If we specified, installed, and maintain your systems, and itever goes down as a result of our errors, oversight, fault, etc, we'll fix it forfree.

    (6) Could you be stranded without support in a critical time? AegisDRM Goldlevel customers always have direct emergency 24/7/365 access to the a fullyempowered project manager who can and will pull out all the stops to getyour project working or to fix your problems. There's nothing more frustratingthan not being able to get a hold of your technology provider in anemergency. And even with all of the technical (call forwarding, answering

    services, etc, etc) systems we have in place to insure that never happens,customers always have the worry that a call could slip through. That's whyour Gold level customers always have direct emergency access to a fullyempowered senior project managers mobile number for emergencies.

    When?

    At what stage should you be thinking of DRM if you are implementing an on-linemusic or video service? If you are a multi billion dollar organization or a Garage bandgoing commercial there is only one answer if this is supposed to be a businessproposition YOU MUST START WITH THE DRM FIRST then move on to thecommoditized issues such as web and database design, ecommerce and payment

    systems, server selections etc. Work with your DRM provider throughout the projectlife cycle. Almost every other issue can be decided on at the last moment or choppedand changed at will but the security and control of your content is going to be alinchpin which the rest rotates around whether it is signing artists or ensuring thatyou can monetize existing content.

    How?

    So how do you implement a system? We can do it for you or you can just follow ourstep by step description in the next section where we give a detailed, jargon-free, endto end description of the whole process.

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    Solution Description

    The AegisDRM Multimedia Protection system is designed to be best of breed in

    simplicity and ease of use. It can be installed with a single click on any PC running

    Microsoft Windows from CD or download (12 MB). When it is installed just follow the

    simple steps below to protect batches of files. Full help is also included with the

    program. Video and Audio can be protected.

    First Create a new Project file

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    Then add your wma files(s) to it:

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    After you add your wma file(s) then you can press this button:

    Your WMA or WMV file now has a license in it.

    If someone tries to play the licensed WMA or WMV file, they will get a messageabout how to get the DRM license.

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    After you downloaded Windows Media Encoder 9 and run it you should get a screenlike this one:

    Click Next. After you click next you should get this screen:

    You MUST hit I accept in order to install it. After that click Next and follow the onscreen instructions

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    Server Requirements for AegisDRM Multimedia Protector:

    Windows Media Rights Manager 10 SDK (supplied)Microsoft Window 2003 with IIS or a web server capable of ASP

    Note that AegisDRM will set up your server for you if required so you need no do anyof this but if you do want to do this yourself this is how you do it.

    Install Media Rights Manager 10 SDK:Create the following directory systemroot\inetpub\wwwroot\wm, wheresystemroot is where your windows directory is located ie c:\windowsCopy all files from systemroot\WMSDK\WMRM10\samples to

    systemroot\inetpub\wwwroot\wm .Creating License Keys:1. Open your favourite text editor such as notepad2. Copy the following code and put it into the document. (Copy and Paste)

    '''----Start of code ----'''''

    Dim WSHShell

    Set WSHShell = WScript.CreateObject("WScript.Shell")

    dim keysobjs

    dim privkey

    dim pubkey

    dim seed

    Set keysobj= CreateObject("wmrmobjs.WMRMKeys")

    keysobj.GenerateSigningKeys privkey, pubkey

    seed = keysobj.GenerateSeed()Dim cmd

    ' Write the private key to privkey.txt.

    cmd = "command.com /C echo " + privkey + " > privkey.txt"

    WSHShell.Run cmd,0

    'Write the public key to pubkey.txt.

    cmd = "command.com /C echo " + pubkey + " > pubkey.txt"

    WSHShell.Run cmd,0

    ' Write the license key seed to seed.txt.

    cmd = "command.com /C echo " + seed + " > seed.txt"WSHShell.Run cmd,0

    '''---End of code---'''

    3. Save file as WMRMKey.vbs

    4. Run the WMRMKey.vbs file (double click on it), Three text files are created(seed.txt, pubkey.txt, and privkey.txt) in the same directory as the script file. Eachtext file contains a value. In practice these values should be kept secret.- generated keys are different each time we run the WMRMKey.vbs file.

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    Editing the Global.asa file:You have to edit some information that Windows Media Rights Manager needs topackage and license files.

    1. Edit the file Global.asa file in the systemroot\inetpub\wwwroot\wm toedit the following information.

    Side Note: You can use a normal text editor such as notepad.a. siteurl: The name of your server followed by /wm, for examplehttp://your-server/wm or http://localhost/wm . (Note: Use the localhostone if you plan to use this on your computer)

    b. seed: Your license key seed that you made before. Copy and pastewhat is in seed.txt.Important: When you copy it be sure not to include the spaces at theend

    c. contentserverpubkey: Your public key which you copy and pastefrom pubkey.txt.Important: When you copy it be sure not to include the spaces at theend

    d. contentserverprivkey: Your private key which you copy fromprivkey.txt..Important: When you copy it be sure not to include the spaces at theend

    2. Ignore the other lines in the global.asa file, those lines are related toWindows Media Rights Manager version 1

    3. Save the updated global.asa file.

    Enabling the global.asa file :1. Click the start menu, point the mouse to Programs, then Administrative tools,

    then click Internet Services Manager

    2. Expand the icon for your server, then expand Web Sites, and then clickDefault Web Site.3. In the content pane, right-click the wm directory and click on properties.

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    4. On the Directory tab under Application Settings, click Create.

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    5. In Execute permissions, click Scripts and Executables, and then click ok.

    6. Start and stop the world wide web service (at the command prompt, enter Net stop

    w3svc, then enter Net start w3svc).

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    Getting a Certificate :1. You must get a certificate and revocation list for each computer that runs WindowsMedia License Service. Complete this process on one computer before starting theprocess on a different computer.2. From each computer running Windows Media License Service, go to the MicrosoftWeb site http://licenseserver.windowsmedia.com/, click Enrol to get a new certificate,and then follow the instructions to begin the enrolment process.You will receive an e-mail message containing the token you need to complete theenrolment.3. Return to http://licenseserver.windowsmedia.com/, click Complete the enrolmentwith your e-mail confirmation, and then follow the instructions to complete theenrolment.

    4. Return to http://licenseserver.windowsmedia.com/ and click Download the latestLicense Service Information to install the latest revocation list.Trying out the License :To use the sample pages to package a file and test license delivery:1. Open http:///wm/package.asp and fill out the form:Specify the Windows Media file to be packaged.Specify the output path and file name for the packaged Windows Media file (use a filename that is different from the source).Note: Make sure the output folder allows Change permission to Everyone. Otherwise,an "Access is denied" message appears when you try to package files.2. Click Package.

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    3. To test license delivery, play the packaged Windows Media file. If you useWindows Media Player 7 or later, you can change the preferred license deliverymethod (silent or nonsilent) by selecting Options on the Tools menu, clicking thePrivacy tab, and then selecting or clearing the Acquire licenses automatically forprotected content option.

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    Solution Benefits

    Effectively solves your piracy, casual passing on and file sharing problems

    Can be set up quickly and simply

    Can be integrated with third party payment systems

    Reliable and dependable. You wont be stranded.

    Pricing

    Solution Type Price

    AegisDRM Gold Server large scale music publishers thousands of tracks

    millions of downloads

    $39995 US

    Ready-to-go licensing,implementation and training

    package.

    AegisDRM Silver Server medium scale music

    publishers thousands oftracks < 1 million downloads

    per month

    $9995 US

    Ready-to-go licensing,implementation and training

    package.

    12 month support contract +15%

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    Contact Us

    Name: Ms Beth Hawthorne

    Address: 4th Floor,

    494 Midsummer Boulevard,

    Milton Keynes,

    MK9 2EA,

    UK

    Email: [email protected]

    Website: www.aegisdrm.com

    Tel: 00-44-1908-255-970

    Fax: 00-44-1908-255-972

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    More Information

    On the Web

    http://www.aegisdrm.com http://demo.aegisdrm.net

    References

    1. Music Piracy and The Audio Home Recording Act, 0023 Duke University

    Law. & Technology Review 2002.

    2. Record labels count cost of music piracy, Dominic Timms, The Guardian

    (UK), April 20, 2005

    3. IFPI Commercial Piracy Report 2005, 2005

    Also in this Series

    DRM White Paper I: Preventing Piracy in Music and VideoAegisDRM August 05

    DRM White Paper II: Protecting Documents in a Virtual Data-Room Environment

    AegisDRM August 05

    DRM White Paper III: Preventing Documents Leaks in a Collaborative Editing

    EnvironmentAegisDRM August 05

    DRM White Paper IV: Preventing Piracy in Games and SoftwareAegisDRM

    August 05

    DRM White Paper VI: Protecting Web Site Content On-LineAegisDRM August 05

    DRM White Paper VII: Protecting PDFs and Web Site Content Off-LineAegisDRM

    August 05

    DRM White Paper VIII: Compliance Using Digital Rights ManagementAegisDRM

    August 05

    DRM Boot Camp: Course NotesAegisDRM August 05

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    Copyright 2004-2005 AegisDRM Ltd. All Rights Reserved.

    AegisDRM Ltd l ogos, and trademarks or registered trademarks of AegisDRM Ltd or its subsidiaries in the United States and other countries.

    Copyright 2004-2005 AegisDRM Ltd. All Rights Reserved.

    Other names and brands may be claimed as the property of others. Information regarding third party products is provided solely for educational purposes.AegisDRM Ltd is not responsible for the performance or support of third party products and does not make any representations or warranties whatsoever regardingquality, reliability, functionality, or compatibility of these devices or products.