What IS DRM?

DRM is an acronym for Digital Rights Management. Basically it's a way of licensing a movie or song for a specific computer for a specified period of time. We've all read about file sharing problems. People download songs, distribute them over pier-to-pier networks, and then a record company comes along and starts filing lawsuits.

Stealing Web Site Content

The other side of the coin is membership Web sites. An aspiring entrepreneur spends hard-earned money creating original videos. Someone comes along, joins the site, distributes the password, and voom! in an Internet second all of the original material is spread all over the world, not just to users, but to dishonest Web masters who post the material on their own sites. It's a real problem and it's killed a lot of Web sites.

The DRM Solution

DRM provides a solutions for these type of scenarios. Record companies can protect their songs, and independent film makers can protect their videos.

How It Works

How it works is simple: When you download protected media you are essentially buying a license for it. That license can be good for an indeterminate period of time, for example, for one viewing, for two days, or indefinitely. But there's a catch. The license generally recognizes where it is installed. In other words, just because you buy a license for an indefinite period of time, doesn't mean you can play it on any computer. The license is only good for the computer that downloaded the movie.

Can DRM Go Too Far?

Yes. For example, if you buy a DVD, you often cannot copy that DVD. But shouldn't users be able to make a backup copy? And, ultimately, isn't it good for artists when their work is distributed, even if they don't make money on every copy? Absolutely. Consider the Grateful Dead. They let people record live shows and distribute their music for free for years. They weren't under contract with a major record company and it worked. When the band released In the Dark, it was a huge success, mainly because people had been listening to live versions of the songs for years and wanted studio versions.

Web Sites That Rebill: DRM Can Prevent It

On the other hand, Web sites that rebill are distasteful. The first time it happens, especially if you went to the Web site once and never went back, you feel like you've been ripped off. Licensing allows sites, if they so choose, to do away with rebilling. In that sense, Digital Rights Management is good for cyberspace. Sites can protect their work, customers don't get dinged once a month even if they haven't been watching movies.

What About When You Buy at a Record Store?

Where a bit of compromise needs to occur is in the brick and mortar world. If you spend 20 bucks on a CD, shouldn't you get that license forever? Say in 1969 you bought an LP of Sgt. Pepper, in 75 you bought an 8-Track of the same songs, in 78, you bought a cassette, in 82 you bought a CD. In essence, you have bought the same license several times, but now 22 years later none of the media work. Shouldn't you get a free copy of Sergeant Pepper's Lonely Hearts Club Band? After all, you've paid for the license repeatedly. If record companies are going to go around suing people for copyright infringement, they should also make accommodations for loyal customers.

Who Does Licensing?

As far the Web goes, all the major players: Microsoft, Real Media, and Apple. They all have different methods, but they all do the same thing. Why does www.webelez.com only use the Microsoft method? It's a matter of cost and what works best. To do it right and to do it where it's bundled with a credit card merchant, DRM Networks is the best solution, and DRM uses the Microsoft method. To do it any other way is a royal pain in the nether regions. We found that most credit card merchants will say they can handle a video-on-demand site, but, in reality, it's very difficult and tedious to set up a site with them; whereas DRM Networks truly does support it and can get it up and running in a matter of days.

Macintosh

On the Macintosh front, we would very much like to support video-on-demand for the Mac. To date, we don't know of any credit card merchant that supports it. If you do know of such a systems, please let us know.

In Summary

DRM, also known as Digital Rights Management, allows artists and companies to protect copyrighted material. It is not the ideal solution, but it is best one Web sites have for distributing material while at the same time not rebilling customers on a monthly basis.