Business Models and IPR

5/29/2000 [email protected] 1

J. A. Barria

OCCAMM WorkshopBrussels, 25 May 2000

Business Models and IPR


Content

• The need for a Business Model (BM)• Definition of a BM• The emerging value chain• Model based on core competencies• Content Right Intermediary (CRI) BM• EC funded projects and their BMs


The Need for a Business Model (1)

• Changes in the market place

– Rapid technological obsolescence,– Rapid changing industry setting and value drivers,– Open product offerings,– Emergence of new market spaces,– Shift from resource-based competition to

information-based competition.



• Traditional business structures cannot keeppace with the greater uncertainty andcomplexity of a dynamic market place.

• A more discovery-driven approach isrequired, capable of identifying, proactivelyreacting to, and seizing new opportunities asthey emerge.



• Survivors are players able to adapt, learn bydoing, and open to adjustment as they goalong and hence:– Bringing the “environment” into Production,– Sustaining its services and operation over time,

and– Considering different possible trading

relationships.


Examples of Trading relationship:Transaction Models

– Information Flows– Payment Flows

• Pay per view,• Pay on delivery,• Pay on approval (e.g. after sampling),• Pay with cupons,• Swap/Trade,• Auction or Resale.

– Rights Flows• Steal (piracy).


Definition of a Business Model[Timmers98, Focus Theme, EC, 1998]

• An architecture for the product, service andinformation flow, including a description ofthe various business actors and their roles;and

• A description of the potential benefits forthe various business actors, and

• A description of the source of revenue.


Web Business Model Examples

• Brokerage model (market Makers);• Merchant Model (Wholesalers);• Procurement Model;• Advertising Model:• Manufacturer Model;• Subscription Model;• Affiliate Model;• Free trial/sample Model;• Real estate Model (Web space...);• Community Model;• Direct Marketing Model;• Utility Model (meter usage)...

• Library Model;• Open source Model;• Information barter (Informediary)

Model;• Access provision Model (ISPs… )


Terminalvending

InfrastructureprovisionService

provisionContent and

servicepackaging

ContentCreation

User

Contentsupply

Tailoring and branding

Platform and connectivity

DeliveryTransmission

Access control

Function

Activity

The Emerging Value Chain (1)(Telecom/Media/Info convergence)

Source: Squires Sanders Dempsey LLP and Analysis Ltd.


The Emerging Value Chain (2)

• Shift in the value chain due to changes onpatterns of consumption.

• value migrating from:– Simple delivery,

• to– The production and packaging of content, or– On-line transactions and offering of services.


Core strength

Partial competence

Potential contractual link to another player

Extending relationship or contractual links

ContentCreation Packing Service

ProvisionInfrastructure

ProvisionTerminalVending

Telecom Operators

Source: The Green paper on the convergence, EC, 3. Dec. 1997


Core strength

Partial competence






Broadcasters



Core strength

Partial competence






Internet Service Providers



Online Services/Websites(e.g. AOL, T-Online, Yahoo, MSN, Excite)

Internet-on-TV(e.g. WebTV Classic,

dedicated internet Set-Top-Boxes)

PushConcepts/Webcasting(e.g. Pointcast, Marimba Castanet,

Browser built-in Channels)

Advanced/Enhanced-TV(e.g. WebTV Plus, NCI,

Worldgate, Wink)

PC-based Online-TV(e.g. Intel Intercast,

Real Networks/Streaming video)

TV Programmes/Services, (digital) Pay-TV

(e.g. NBC, CNN, Cable TV, HBC)

New/ additional functions

New platform

Source: Thielman and Dowling, U. of Regensburg, Germany, 1999

Direction for further Innovation(Web-TV convergence)


Model based on Core competencies[Selhofer and Wurfl EC DG XIII/E, 1997]

• Composed of two layers:

– Content• Creation, Packaging and market Making,

– Infrastructure services• Transport, Service Delivery, Interfaces and systems.


MarketMaking

ContentPackaging

ContentCreation

User

InfrastructureServices

Content

Terminalvending

InfrastructureProvision

ServiceProvision

Source: Adapted from [Selhofer and Wurfl] EC DG XIII/E, 1997

Core competencies Model


The Content Right Intermediary BM

• The evolution of new technologies:– Enhances the medium for online trading,– Permit transaction of important and confidential

information, and– Allow for lower reproduction costs of digital

content, but ...– Exposes information to a variety of security

threats.


ICRS EC project Key Issues[Imprimatur project]

• Attempt to encompass the domain of IPR asa list of key issues:

– Identifiers and establishing rights,– Monitoring and managing use,– Creator rights and responsibilities,– Economic issues.


Monitoring and managing use

• Requirements of the secure transaction ofdigital content:– Audit,– Non-repudiation,– Authentication (about restricted access),– Integrity,– Confidentiality, and– Anonymity (about consumer rights).


The Content Right Intermediary (CRI)

• Facilitates technologies for securetransactions of digital content e.g.:– Data encryption,– Watermarking,– Finger printing,– Certification, and– Digital signature.


MarketMaking

ContentPackaging

ContentCreation

User

InfrastructureServices

Content

Terminalvending

InfrastructureProvision

ServiceProvision

Content Rights Intermediary

The CRI and the value chain

Source: Adapted from [Felder et al EC DG XIII/E, 1996]


Creator Producer

RightHolder

$ $

IPR Data

Unique Number

Unique NumberIssuer

IPRDatabase

Creation Description

Facilitates: Unique Identification of Data

Source: Rightscom


MediaDistributor PurchaserProducer

$

CertificateAuthority

Media distribution ID ?

Purchaser ID ?Media Distributor ID ?

Facilitates: Content Security

Source: Rightscom


EC funded projects and their BMs• The Imprimatur model

– Conceptual Framework for ElectronicRights/Copyright management systems(ERMS/ECMS).

• The Filigrane Model– Secured management of mobile code

(distribution and usage).

• The ATMAN trading Model– Trading of Audio Visual material based on

electronic means.


CreationProvider

Creator

MediaDistributor

Purchaser

UniqueNumberIssuer

Certific.Authority

Request forUnique

Number andGeneration

CertificateIssuance andManagement

Transfer ofContents(Work)

Transfer ofvalue

RightsHolder

IPRDatabase

MonitoringServiceProvider

Assignmentof Rights

IPR Info Request forLicense and

Authorization

TransactionLog

IPR Info

Rights Holderreference and

paymentdetails

Imprimatur


MobileCode

Producer

MobileCode

Provider

MobileCodeUser

FeeCollecting

Agency

ValueCollection

ValueRedistribution

ValueRedistribution

Rights/FinancialSynchronization

E-Notary

NotarizesEvents

ProvidesTrusted Audit

RightsClearingHouse

ProducerRights

Definition

DistributionLicense

Agreement

Usage LicenseAgreement

CACardIssuer

UniqueNumberIssuerIssues

Smart Cards

Issues UniqueIdentifiers

Issues &Manages

Certificates

QualityLabel

Service

Value

Rights

Mobile Code

Filigrane


ATMANCompany

ContentProvider

ATMANSystem

ContentBuyers

(Distributors)

GeneralPublic

Use thesystem to identifycontents to buy

$

AV Contentdelivery

Use thesystem to advertise

the sale ofcontents

Managethe systemSubscribe to

ATMANSubscribe to

ATMAN

Grant rights to handle contents in the ATMAN system

$ $

Right-owners(Authors) $

AV Content +utilization rights

$

$Grant rights for

RightCollectingSocieties

$

$Grant rights for

distributionproduction

Mandate to administrate rightsRight-owners

(Authors)

ATMAN


Summary

• The need for a Business Model (BM)• Definition of a BM• The emerging value chain• Model based on core competencies• Content Right Intermediary (CRI) BM• Some EC studies on BMs

Business Models and IPR

Documents