[A2k] [Fwd: ZDNet UK: Piracy protection costs 'prohibitive']

Tue Apr 5 07:23:02 2005

Given our forthcoming conference on patents  below is an interesting story
on the cost of patents for DRM sytems in mobiles.
Michelle

This ZDNET UK story has been forwarded to you by:

michelle (michelle.childs@cptech.org).

----------------------------------------------------------

http://news.zdnet.co.uk/hardware/mobile/0,39020360,39193814,00.htm

Piracy protection costs 'prohibitive'
Jo Best

The GSM Association (GSMA),  the =FCber mobile phone trade group whose
members span Microsoft, BT and Nokia ; has complained the current piracy
protection for mobiles is "unworkable" and will cost them too dear.

The pre-eminent standard in the mobile phone world for DRM ; technology
designed to prevent mobile content being pirated ; is one being proposed
by the Open Mobile Alliance.

Patents used to create the standard are drawn from a small group of
companies, which includes Philips and Sony and is known as MPEG LA. MPEG
LA is thought to be demanding a $1 payment for every phone sold using the
technology, plus a per-transaction fee every time mobile content protected
by its DRM is bought and sold.

That, according to the GSM Association is "impractical, excessive and
short-sighted" and the per transaction fee is "unworkable" in the market.

A spokesman for the Association said it hadn't changed its mind about its
commitment to open standards over proprietary systems but said MPEG LA
will have to alter its licensing for the adoption to continue.

 "The ideal solution would be to have MPEG LA review this and come back wit=
h
more reasonable terms," he said. "We would prefer to have a single open
approach but not on these terms."

The Association also expressed concern that what it considers a high cost
would force mobile companies to adopt proprietary solutions, such as
Microsoft's WMA format, already in use on some models of digital music
players and coming soon to Nokia handsets.

That fragmentation would mean users would be unable to transfer music or
movie downloads from one mobile to another after an upgrade, for example.
The GSM Association said this would also cause problems with roaming,
changing networks or exchanging media content with friends and would
stifle market growth.

The GSMA is now calling for proposals from other DRM providers, to be
submitted by 11 April. This short turnaround has prompted some to question
if the Association is puffing its chest out in an attempt to scare the
MPEG LA into lowering its licensing fees.

Dario Betti, senior analyst at Ovum, said the strategy is likely to pay
off for the GSMA. "It sounds to me like they're playing a bit of a game &;
and it's worked in the past," he said. "I still think the OMA DRM will be
kept as standard with all the investment that's gone after it and [it] has
been optimised for mobiles. I don't think they'll turn their back on
something they helped create."

The GSMA's spokesman denied it was making idle threats. "There are more
tangible alternatives out there," he said, adding that other DRM vendors
had already come forward with proposals. The GSMA has yet to be contacted
by MPEG LA, according to the spokesman.

Ovum's Betti, however, isn't convinced. "It's 'mission accomplished' &;
people [at MPEG LA] are quite scared."

Larry Horn, vice-president for licensing and business development at MPEG
LA, said the organisation is "pleased by the markets' interest". He
continued: "In an ongoing effort to be responsive to the marketplace's
concerns, [the company and patent holders] are pleased to receive and
consider the GSMA's comments. The choice of technology is an independent
determination to be made by each company and each company must make the
decision according to their market needs."

He added that the value of the technology should be considered against the
new opportunities the company believes it will bring.
---------------------------------------------------------------------

If it moves, we cover it. See ZDNet UK's Mobile Technology News Section

for the latest news, reviews and price checks on mobile phones, PDAs,

notebook computers and anything else you can take away.

Let the editors know what you think in the Mailroom.

ZDNet News: The UK's best source for computing news - updated

throughout the day. http://news.zdnet.co.uk/

Please report any abuse of this service to ukwebmaster@zdnet.com

ZDNET is a registered service mark of CNET Networks, Inc.

ZDNET Logo is a service mark of CNET NETWORKS, Inc.

--
Michelle Childs -Head of European Affairs
Consumer Project on Technology in London
24, Highbury Crescent, London, N5 1RX,UK.
Tel:+44(0)207 226 6663 ex 252.
Mob:+44(0)790 386 4642. Fax: +44(0)207 354 0607
http://www.cptech.org

Consumer Project on Technology in Washington, DC
PO Box 19367, Washington, DC 20036, USA
Tel.:  1.202.387.8030, fax: 1.202.234.5176

Consumer Project on Technology in Geneva
1 Route des  Morillons, CP 2100, 1211 Geneva 2, Switzerland
Tel: +41 22 791 6727

--
Michelle Childs -Head of European Affairs
Consumer Project on Technology in London
24, Highbury Crescent, London, N5 1RX,UK.
Tel:+44(0)207 226 6663 ex 252.
Mob:+44(0)790 386 4642. Fax: +44(0)207 354 0607
http://www.cptech.org

Consumer Project on Technology in Washington, DC
PO Box 19367, Washington, DC 20036, USA
Tel.:  1.202.387.8030, fax: 1.202.234.5176

Consumer Project on Technology in Geneva
1 Route des  Morillons, CP 2100, 1211 Geneva 2, Switzerland
Tel: +41 22 791 6727