Copyright, 2000-2005 1 Sector Roger Clarke Chair, AEShareNet Limited Xamax Consultancy, Canberra & Visiting Professor at the A.N.U., the Uni. of Hong Kong and the Cyberspace Law & Policy Centre, U.N.S.W. http://www.anu.edu.au/people/Roger.Clarke/ ... ... /EC/IPBusTAFE-0509 {.html, .ppt} TAFE Development Centre, Melbourne 20 September 2005 QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture QuickTime™ TIFF (Uncompr are needed t
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Copyright,2000-2005 1
IP Business Models for the TAFE Sector
Roger Clarke Chair, AEShareNet Limited
Xamax Consultancy, Canberra& Visiting Professor at the A.N.U., the Uni. of Hong Kong
TAFE Development Centre, Melbourne20 September 2005
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
Copyright,2000-2005 2
IP Business Models for the TAFE SectorAgenda
1. Contemporary Realities2. What’s a Business Model3. Intellectual Property Business Models
• Outdated Proprietary BMs• Proprietary BMs for the Modern Era• Open, Sharing BMs
4. Choosing Between Proprietary and Open5. Implementing an IP Business Model
Copyright,2000-2005 3
1. Contemporary Realities
• The Digital Era• Atoms ==>> Bits
• Internet / Cyberspace• Bits go anywhere
• Peer-to-Peer (P2P)• Bits go everywhere
• Interactive Publishing• Bits get used
Copyright,2000-2005 4
Peer-to-Peer (P2P)
• “P2P is class of applications that take advantage of resources (storage, processing capacity, content, human presence) available at the edge of the Internet”
• Each participating program is both Client and Serverand hence each workstation is a host as well, e.g.
• your music playstation can be a mixer too• your PDA can host part of a music catalogue• your PC can host part of a music repository
Copyright,2000-2005 5
P2P ArchitectureCooperative Use of Resources at the
Edge
Server & Client
inWorkstation
Server & Client
inWorkstation
Copyright,2000-2005 6
Conventional Publishing, 1450-1995
The PublishingIndustry Value-Chain
Parts of the PublishingIndustry Value-Chain
Desk-Top Publishing, 1985-20..
Copyright,2000-2005 7
Electronic Publishing, 1990-20..
Cross-Media Publishing, 1998-20..
FormatConversion
Copyright,2000-2005 8
Interactive 'ePublishing', 1995-2095
TheHoney
Pot
'Bees Around a Honey-Pot'
Copyright,2000-2005 9
2. What’s an eBusiness
Model?
It’s an Answer to the Question:
Who Pays?
For What?
To Whom?
And Why?
Copyright,2000-2005 10
3A. The Outdated Proprietary IP Business Model
• Exploit the Monopoly through High Prices
• Leverage the Monopoly
• Extend the Brand• Cross-Promote
• Sustain the Monopoly• Very Constrained
Licensing• Technological
Protections
• Lawsuits to stop, and to chill, behaviour:
• Commercial Violations
• Single-Purpose Technologies
• Incitement (‘Authorisation’)
• Multiply-Usable Technologies
• Consumption
Copyright,2000-2005 11
Avenues of Music Industry Fightback
• Political• Copyright Expansionism• Criminalisation / Cost Transfer
• Legal• Lawsuits• Publicity
• Technological• Digital Rights Management• Reduction of the Power at the Edges
Copyright,2000-2005 12
3B. A Sustainable Proprietary Approachfor the Music Industry
• Identify price resistance-points in the various customer-segments i.e. ‘what the market will bear’
• Set prices accordingly (and hence sustain payment morality)
• Make backlists and new releases available via for-fee P2P channels
• Discourage and prosecute breaches where the purpose is commercial
• Take no action over breaches by consumers (esp. time-shifting, format-change, even sharing?)
The Evidence• Since 2003,
Apple iTunes charges USD 0.99/track!?
• Copyright-Owners get USD 0.70
• In 2005, they’re asking for more
Copyright,2000-2005 13
3C. Open, Sharing IP Business Models
WHO PAYS? For What? To Whom? And Why?
• Customers, for the Good/ServiceDistribution
• Customers, for Complementary Goods/ServicesConsultancy, Training, Installation, Customisation, Integration, Audit
• Providers
• Third Parties
Copyright,2000-2005 14
Who Pays? Sometimes, a Fairy Godmother
• SubsidyFunding from ‘external’ sourcesDeprecated as a gift, unless ‘market failure’
• Cross-SubsidyFunding from ‘internal’ sourcesDeprecated, claimed to be ‘distortive’
• Portfolio ApproachMutual Cross-Funding from ‘internal’ sourcesHow business works – ‘cash cows’ fund the rest
Copyright,2000-2005 15
Who Pays? FOR WHAT? To Whom? And Why?
• Goods & Services• Value-Added
Goods & Services• Complementary
Goods & Services• Infrastructure• After-Sales Service
• Data• Information• Expertise / Knowledge
• An Idea in Good Standing• Timeliness• Quality
Copyright,2000-2005 16
Who Pays? For What? TO WHOM? And Why?
Direct Intermediated• Retailer• Franchisee• Value-Adder• Bundler• Transaction