Rightsrouter and DOI Presentation to IDF Members Meeting 22nd June 2004 Gordon Rintoul - Director of Operations.

Rightsrouter and DOI

Presentation to IDF Members Meeting

22nd June 2004

Gordon Rintoul - Director of Operations

Spun out of the UK's Association of Independent Music (AIM), where the team pioneered one-stop collective licensing with individual rights holder control at AIM's new media R&D arm Musicindie.

Completed first legitimate licensing agreement with the original Napster in 2000, providing catalogue from 200+ labels (125k tracks)

Since then, the team has completed many other collective deals on behalf of the AIM members.

Involved with trial of Chinese broadband services resulting in first ever royalties from that country to be paid to European labels

Actively involved in several industry research consortia of the EU Commission, including Emucast and Musical.

Rightsrouter is based in Scotland and has representative offices in London and Zurich.

Rightsrouter History

© 2004 Rightsrouter - Strictly Confidential

Our Approach:

•Rights holders should have direct control of their assets and maintain a direct client relationship with the party distributing their content.

•Content distributors (e.g. online music services) should be empowered to access a large content catalogue and stay in control over editorial decisions

•Based on these core principles, Rightsrouter does not stand in the "middle" but simply opens up a direct link between rights holders and content distributors, allowing them to deal with each other in a way that is efficient, transparent and fair.

This is what we do - nothing less and nothing more.

Rightsrouter Approach

© 2004 Rightsrouter - Strictly Confidential

For a content distributor, there are three key benefits of Rightsrouter:

• Quality Catalogue: Rightsrouter provides fast access to international music content.

• Management of Rights Data: Rightsrouter is the efficient administration tool for contract management. Content distributors can negotiate efficiently with thousands of rights holders and continuously keep track, add content, change terms, or expand to new forms of exploitation.

• Integration with Third-Party Providers: Rightsrouter links to dedicated providers of related services, such as content preparation, content delivery, and payment distribution.

Rightsrouter - Content Distributors

© 2004 Rightsrouter - Strictly Confidential

For Rights Holders, Rightsrouter enables:

•Immediate access to a growing number of licensing deals (including download/streaming, subscription/per track purchase, mobile delivery, ringtone licensing, and more).

•To decide which of your content will go into which deals and under what conditions.

•Any changes to your rights data will be fed continuously to the participating content distributors.

It's your content - you control it.

Rightsrouter - Rights Holders

© 2004 Rightsrouter - Strictly Confidential

Consulting • Legal Issues: territorial differences and local copyright regimes, requirements with local collective rights societies

• Data Management: metadata formats, conversion, updating, unique identifiers, DRM

• Content Management: digitization, encoding, cover art, related chart and biog data, storage, and delivery

• Related Factors: content exploitation strategies in different channels, content distribution monitoring, payment processes

Rightsrouter is one of the most experienced companies in the world in addressing these issues. Our team members are experts in intellectual property rights and metadata management with many years of industry experience.

Rightsrouter - Consulting

© 2004 Rightsrouter - Strictly Confidential

IPR

Detailed metadata set for IPR

LicenseDetailed metadata set for License rules

Metadata

Detailed metadata set for Digital Object

© 2004 Rightsrouter - Strictly Confidential

Identifier Principle

Compulsory metadata set for all ID’s

ID Kernel ID Kernel MetadataMetadata

Music IPR Licensing

Producer Manufacturer

Retail CD

Creator Distributor Retailer Consumer

Producer Manufacturer

On-line

Creator Distributor Retailer Consumer

Music IPR Licensing

Licensing Chain

New communication gap

© 2004 Rightsrouter - Strictly Confidential

Producer Manufacturer Distributor ConsumerCreator Retailer

Content Supply Chain

Producer Manufacturer Distributor ConsumerCreator

Final coverart, glass master,

redbook format

Label

Glass master used for multiple duplication

Label

Warehouse storage & shipping

to retail

Distributor

Master recording format, Sleeve

Design

Label

Retailer

Retail CD

On-line

Order/Sell product & account for sales

Licensee

Audio/artwork/data (eg CD & excel

sheet)

Label

Order/Sell product & account for sales

Retailer

Convert master files to client

encoding spec

Content Mgmt Co.

Server/HD store, and deliver via

ftp/HD

Content Mgmt Co.

Create digital master files (eg. Wav/coverart)

Label

© 2004 Rightsrouter - Strictly Confidential

Producer Manufacturer Distributor ConsumerCreator Retailer

Content Supply Chain

On-line

Order/Sell product & account for sales

Licensee

Audio/artwork/data (eg CD & excel

sheet)

Label

Content Preparation

Digital Assets created & owned by label. (e.g. metadata, wav and master cover art scan). These assets can be managed by label or assigned to Content Mgmt. Co. such as Distributor.

Packaging/Delivery

Digital assets requested by licensee are converted to provided spec (Packaged) by assigned Content Mgmt. Co. & delivered according to preferred delivery method (e.g. via ftp).

Content Orders

Can be requested by licensee through Rightsrouter system. Solutions in place to order tracks cleared for license and route the order to label assigned Content Mgmt. Co.

Convert master files to client

encoding spec

Content Mgmt. Co.

Server/HD store, and deliver via

ftp/HD

Content Mgmt. Co.

Create digital master files (eg. Wav/coverart)

Label

Common Identifier?

© 2004 Rightsrouter - Strictly Confidential

Labels Licensee’sMetadata Mgmt. Tools

Catalogue db

Search/Request Content

Me

tad

ata

Media Asset db

CD/Product Delivery

Content DeliveryC

on

ten

tR

igh

ts

Rights db

License AdminTools

License Admin Tools

Rightsrouter™ offers a complete licensing & digital content fulfillment system.

Rightsrouter™ System

DOI Potential

© 2004 Rightsrouter - Strictly Confidential