© R. Grimm, TU Ilmenau, Dec 2002 Virtual Goods 1 Uwe Muster Hamburg Security and Business Models...
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Transcript of © R. Grimm, TU Ilmenau, Dec 2002 Virtual Goods 1 Uwe Muster Hamburg Security and Business Models...
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 1
Uwe MusterHamburg
Security and Business Models for Virtual Goods
ACM Multimedia Security Workshop6 December 2002
Juan le Pin, France
Prof. Dr. Rüdiger GrimmTU Ilmenau
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 2
Content
Virtual goods
Cost of digital goods
Busines models for virtual goods
IPMP / Lightweight model
Alternative „Potato“ model
Applications, challenges
References
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 3
Product value
Usage value
Cheaper for digital goods
Life cycle of goods
Creation – Production –
Reproduction – Distribution –
Consumption – Satisfaction
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 4
e.g., Music in the Internet: digital good
• Digital: one form of virtuality
• Special properties:
• Lossless separation from medium
• Re-binding to other media
• Repeatable by free choice of user
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 5
Production / Communication / Consumption of digital goods
011101000100101001111010010000100110
code(reduction)
transfer/storage(lossless)
011101000100101001111010010000100110
interpretation(enrichment
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 6
Cost
• Production of media is expensive• Sales of products is expensive• Investing into end-user devices is expensive
• Infrastructure of end-user devices is available• Infrastructure of communication is available
• Consumption of products is cheap• Communication of products is cheap• Reproduction of products is cheap
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 7
Degression of cost per-piece for virtual goods
Number of pieces sold
Cost per-piece=Product value/Euro
Final cost ofadditional piecealmost zero
Cost for total production
1 10 100 1.000 10.000 100.000 1 Mio. 10 Mio.
10.000
1000
100
10
1
0,1
0,01
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 8
Busines models for virtual goods
• Intellectual Property Management & Protection (IPMP)– Central control of usage by provider– Policy of rights– Restriction of users through policies– Technical basis (full IPMP): IPMP-Tools (control of users)– Technical basis (light-weight): signatures (traces)
• Friendly File-Sharing („Potato“)– Decentralizes sales model– Policy of provisions– Users are free to use, but they earn provision only if they pay– Technical basis: sales receipt (TAN in file name)
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 9
IPMP: CP-centric model
Content Provider
User executesrights of usage
Specifies rightsSells content
Controls usage
User executesrights of usage
User executesrights of usage
User executesrights of usage
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 10
Critical comments on IPMP/DRM
1. Conflict between interest and enforcement
2. CP-centric view of policies
3. Burden of enforcement on the user equipment
4. Enforcement vs. identification of rights
5. Interoperability
6. Scalability
7. Privacy
8. Negotiation of policies
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 11
„LWDRM – light-weight model
• Re 4: enforcement vs. identification :• There is no unsigned content in clear in the
network• By consuming a file, its origin is verified• By distributing a file, it is signed• Method: signcryption (recoverable signature)
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 12
Role of content provider (BMG, Sony, ...)
specify / sell / control
Provider Trans-ferFiles
CDs
Authors / CreatorsAuthors / Creators
Authors / CreatorsAuthors / Creators
User / Consumer rights
User / Consumer rights
User / Consumer rights
User / Consumer rights
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 13
Role of content provider (II)
Provider
User / Consumer rights
User / Consumer rights
User / Consumer rights
User / Consumer rights
Authors / CreatorsAuthors / Creators
Authors / CreatorsAuthors / Creators
Files
Napster
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 14
Role of content provider (III)
Provider
User / Consumer rights
User / Consumer rights
User / Consumer rights
User / Consumer rights
Authors / CreatorsAuthors / Creators
Authors / CreatorsAuthors / Creators
Napster
FilesGnutella
controls
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 15
Conflict of interests
• Users are interested in re-distribution• Users have power to re-distribute
• Providers are interested in re-distribution• Providers want money
• Solution ???:• Providers prevent users from re-distribution
- Pursue of users- Criminalization of users
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 16
Cooperation of interests
• Users are interested in re-distribution• Users have power to re-distribute
• Providers are interested in re-distribution• Providers want money
• Solution:• Providers support users to re-distribute• Users earn share of income (provision)
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 17
Fred creates content andGinnie buys content
Fred receives share as author
Fred adds TAN=21to file name
Fred offers his musicto many users
FredMusic Provider
Ginnylikes to listen to Fred‘s music
TAN=21
Fred registers MySong
Ginny p
rese
nts T
AN=21
and
pays
for t
he m
usic
TAN=53
MySong.mp3MySong4fo21.mp3 MySong4fo21.mp3
Ginny adds TAN=53to file name
MySong4fo53.mp3
Accounting Server
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 18
Content files are registered in (distributed) accounting centers
• Fred (composer, author) creates content file
(1) Fred registers content file at Accounting Service of Bill und recieves TAN (add to file name)
(2) Fred distributes his file in the Internet
(3) Ginnie receives file from anywhere (e.g., from Fred)
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 19
Payment = right to receive a provision
(3) Ginnie receives file from anywhere (e.g., from Fred)
(4) Ginnie pays for the file at Bill‘s and recieves a receipt (her own TAN to be added to file name)
(5) Bill pays Fred
(6) Ginnie distributes the file in the Internet
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 20
Ginnie copies content to Harry
Accounting Server
Ginny copies Fred‘s musicto Harry and to other friends
FredMusic Provider
Ginny loves Fred‘s music
Harry
pre
sent
s TAN=5
3
and
pays
for t
he fil
e
TAN=71
MySong4fo53.mp3 MySong4fo53.mp3
Harry adds TAN=71To file name
MySong4fo71.mp3
Harry shares Ginniesenthusiam for Fred‘s music
Ginny receives provision
Fred receives share as author
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 21
Payment = right to receive a provision
(6) Ginnie copies file to Harry (Harry is free to pay or not)
(7) In case Harry pays,then he receives his own TAN (to be added to file name,
(8) then Fred receives his share as an author
(9) and then Ginny receives her share as provision
(6) Harry re-distributes his file ...
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 22
„Pretty Good Distribution“
• Users can earn more money than they pay• Users who do not pay, are free to consume and re-
distribute• Re-distribution without payment supports former payer• Re-distribution supports marketing
• Alternative structure of distribution „bottom-up“• „For friends only“ (name of an Ilmenau spin-off)• Open source in www.4fo.de
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 23
Applications
• Music marketing• Music of young groups / composers• Radio / TV broadcast
• Conference papers (authors want to keep right of distribution)
• Levels in games of different authors
• Community and re-distribution services (Ginnie has the best pieces, so we look for products at Ginnie‘s server)
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 24
Challenges
• Accounting protocol• Central names and file register vs. de-central
receipts• Electronic payment (e.g., Paybest)• Integrity of origin (Audio-Id, water marks?)• Models of provision• Models of receipts• Roll of a PKI (needed anyway?)• Establishment of accounting services
© R. Grimm, TU Ilmenau, Dec 2002
Virtual Goods 25
References
[1] Angelo Sotira: Step 1 – What is Gnutella? In: http://www.gnutella.com , 3 Dec 2001. Adam T. Lindsay, Jürgen Herre: MPEG-7 and MPEG-7 Audio – An Overview.
Journal of the AES, June/July 2001.
[2] Allamanche, E.; Herre, J.; Hellmuth, O.; Fröba, B.; Cremer, M.: AudioID: Towards Content-Based Identification of Audio Material. In 110th AES-Convention, Amsterdam, 2001. Convention Paper 5380
[3] IPMP Ad-hoc Group, ISO/IEC JTC 1/SC 29/WG11: Coding of Moving Pictures and Audio. Study of Text of PDAM ISO/IEC 14496-1:2001, Dec 2001.
[4] G. Spenger, C.C. Bürgel: MPEG-21: Der Schlüssel zu Multimedia. DuD 5/2002.
[5] Grimm, R.; Nützel, J.: Geschäftsmodelle für virtuelle Waren. DuD 5/2002.
[6] 3GPP TS 22.242 V6.0.0 (2002-06). Digital Rights Management (DRM) Stage 1, Release 6, June 2002.
[7] Neubauer, Ch.; Pickel, J.; Brandenburg, K.; Siebenhaar, F.: Aspekte des Rechtemanagements für digitale Güter, 22. Tonmeistertagung, Hannover, November 2002, VDT.
[8] Nützel J.; Grimm R.; Puchta S.: Musik im Internet – Wie kann man eine Ware verkaufen, die alle schon haben? 22. Tonmeistertagung, Hannover, November 2002, VDT.
http://www.4fo.de http://www.4friendsonly.com