Service provider view how to cope with content diversity - kaisa olkkonen

How to Cope W ith Content D ivers ity?

© 2010 Nokia IFCLAcontent.ppt/ 2010-06-11 / KOL

Kaisa OlkkonenVice President, Legal & IP, S ervicesNokia Corporation

2 © 2008 Nokia

Outline

• Nokia and content diversity.

• Journey from a technology company to solutions company– two cultures?

• Challenges in managing diversity.

• Tools to be used in managing complexity created by diversity – Example cases

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From Technolog y to M edia and Content deals

• Technology deal characteristics:

• Often dealing with one party only.

• Parties having a clear understanding of the technologies involved and use of it.

• Parties having a clear understanding of what the rights necessary for the collaboration are and from where they are available.

• The legal instruments and rules are established and fairly clear. “International contract law” applies to a high extent.

• Global reach of the agreements.

• Practice of completed and signed agreements before deployment.

5 © 2008 Nokia


• Media/Content collaboration deal characteristics:

• Often a big number of parties involved – rights to be acquired from a group of rights holders.

• It is not always crystal clear to whom you need to turn to in order to acquire all the rights you need.

• R ights are limited by territory.

• Licenses are very specific, expanding e.g. the feature set requires amendments to licenses.

6 © 2008 Nokia


• New characteristics in media/content collaboration versus the technology world:

• Advance payments – upfront investment required.

• Most favored nation clauses – are the deals really comparable?

• Non Disclosure Agreements not always a standard practice.

• Very limited indemnities – if any. • E-mail and even oral agreements triggering

deployment - documentation comes later.

7 © 2008 Nokia

Challenges in Managing Diverse Content Activity

1. Existing business and deal making practices may not fit to the new business models. • Creativity and open mindset needed on both sides of the negotiation table.

2. Finding the correct balance between risk and opportunity in the new business models. • A good understanding of real risk exposure and mitigation possibilities

needed. 3. Unclear and untested legislation, or different interpretations of legislation

per country or per different courts. • Regulatory influencing needed as a long term action.

8 © 2008 Nokia IFCLAcontent.ppt / 2010-06-11 / KOL

Challeng es in M anag ing D iverse Content A ctivity

4. Building up the teams ́competencies in the diverse areas of business – locally and globally. • Training, coaching and teamwork needed.

5. Resourcing combined with the challenging economical environment.• High need for efficiency in all operations.


Tools to m anag e the D ivers ity - Exam ples

1. Case Application Distribution: Balancing the risk and opportunity.

2. Case New Business Model for Music: New business models, creativity and influencing the external environment.

3. Case Nokia Legal & IP Way of Working: Building competencies and achieving efficiency.


A pplications – a B alance of R isk and Opportunity

• Consumer relationship and the liability risk. • Quality assurance systems – finding the correct balance.• Deploying available technological solutions to mitigate liability risks. • S ervice terms and conditions – providing good user experience and still also reasonable

legal protection to you.

• Developer ecosystem and relationship. • Your license to the developers – under what IPR and under what terms? • Do you wish to protect the consumers? Terms about virus and malware protection, data

protection and privacy requirements of applications and requirements of information developers will need to provide to users.

• S mall enterprises and private persons as developers – risk evaluation based on past experiences and e.g. distribution model.


A pplications – a B alance of R isk and Opportunity

• Efficiency of the application deal making.• Defined business models to be used globally and locally – possible to create a

tool kit for deal making. • From individual agreements to click through licenses. • Automated intake systems

• Unauthorized content in applications.• Defining developer categories and allowed content types per category.• Weighing the benefits of different moderation concepts versus the desire to

maintain the safe harbor protection. • Considering using watermarking or filtering technologies.• Building an effective notice and take down process and practice.


A new bus iness m odel in m us ic - learning s

• Creating a win – win business model attractive to all involved business players and the users is a critical starting point.

• Identify partners that are ready to act as change agents in their own industry.

• Prepare for iteration and next versions of the model – new business models evolve quickly when the parties start getting the market feedback.

• In markets where regulation influences the rights and roles of some players, regulatory influencing is needed to ensure long term predictability of the environment.


A new bus iness m odel in m us ic - learning s

• EU music licensing as an example:• S tatic tariff based systems will not support the agility and experimentation

required in testing new business models and consumer propositions.

• Willing licensors and licensees should be free to negotiate and agree terms,

ability to negotiate customized licensing solutions for innovative new services is

needed.

• Licensing should allow consumers to access digital services from anywhere

within the EU and repertoire has to be made available on a pan-European basis.

• Finding the new win-win business models is critical for speed. Regulation will

not change fast enough , but can help building a predictable environment and

in setting the basic operating principles for the markets.


A n A g ile and Effi cient Leg al & IP Team• Business integration:

• Lawyers part of the management team work with a good insight to the business

priorities and direction.

• Lawyers part of brainstorming the new win – win business models.

• Lawyers feeling true ownership of the initiatives, together with the business

teams.

• Building competencies to fulfill the ever expanding needs:• First deep hands on involvement in a certain area of work – competence grows

fast.

• Juniors shadowing seniors – return of the investment is fast.


A n A g ile and Effi cient Leg al & IP Team• Motivating the team to learn:

• Use internal key resources to handle all strategic deals. • Use external experts to speed up the competence development in the

background.• Offer to substance area experts a possibility to expand their role without giving

up the ”old” area of expertise altogether.

• S top double work: • Use global communities working across any organizational structures to ensure

alignment and sharing.• Create tools and guidelines in such communities to take all market interfacing

expertise into use.

• Organizational structure:• Consider structures where the business integration aspect can be combined

with a global community thinking – typically not a traditional line organization.

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© 2010 Nokia IFCLAcontent.ppt / 2010-06-11 / KOL

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Service provider view how to cope with content diversity - kaisa olkkonen

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