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[FYI] "Moving towards Consensus on Digital Rights Management" Workshop on Digital Rights Management Brussels, 25 March 2003
<http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&;
doc=SPEECH/03/163|0|RAPID&lg=EN&display=>
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Mr Erkki Liikanen Member of the European Commission, responsible for
Enterprise and the Information Society "Moving towards Consensus on
Digital Rights Management" Workshop on Digital Rights Management
Brussels, 25 March 2003
DN: SPEECH/03/163 Date: 31/03/2003
TXT: EN
PDF: EN
DOC: EN
SPEECH/03/163
Mr Erkki Liikanen
Member of the European Commission, responsible for Enterprise and the
Information Society
"Moving towards Consensus on Digital Rights Management"
Workshop on Digital Rights Management
Brussels, 25 March 2003
I would like to warmly welcome you all and thank you for having shown
such a high interest in participating in today's workshop.
The purpose of the meeting today is to take stock of the progress
made over the last year and to discuss how to take this dialogue
forward.
Digital technologies have transformed the copyright environment and
have given rise to a potentially huge market for content. The advent
of broadband networks emphasises the importance of ensuring that
digital content is available under the appropriate conditions, which
meet the interests of both right-holders and users.
The Copyright Directive supports the use of DRMS by protecting
technical measures. It also requires Member States to take them into
account when providing for fair compensation in the context of the
private use exception.
The European Commission is playing a facilitating role aimed at
encouraging the different stakeholders to find common ground in DRM
issues. To this end, a Commission Staff Working Paper on DRMS has
been published and a group of stakeholders were invited to kick off a
dialogue at the first DRM Workshop a year ago.
Between July and November 2002, four working groups met to focus on
the views of the main stakeholder groups. These consisted of users,
technology companies, content producers and publishers and collective
management societies. These working groups were successful on at
least three accounts:
They brought attention to the concerns and to needs of each interest
group thus preparing the ground for identifying areas of potential
consensus;
They enabled participants to identify the role of DRMS viewed from
the perspective of each group, and to assess the current "state of
the art";
They created a better understanding between all participants of the
issues and different positions.
This has helped the Commission to more accurately identify areas of
potential agreement as well as the outstanding obstacles. The
Commission has gained valuable insights into the current state of
play in terms of the technology and business models.
We have been encouraged by the positive and constructive attitude
that has developed in the Working Groups. This is a strategically
important area, and the issues at stake are sometimes contentious.
But we have received encouraging feedback from the interested
parties.
Digital content is the cornerstone in the Information Society. As we
seek to encourage the roll-out of broadband networks, the incentives
and the setting up of appropriate conditions for the creation,
distribution and use of digital content is crucial.
Digital Right Management technologies can encourage content producers
to make their content available and thus entice users to take-up
broadband. Attention must be given to users' and consumers' rights
and needs. Use of DRM should not lead to losing these rights.
Counterfeiting and piracy in physical goods such as CDs are a growing
concern to the music and film industries. It has a negative impact on
economic activities in the sectors that are particularly sensitive to
the production and distribution of substitute goods.
There is a need to find effective but proportionate measures to fight
piracy. Unfortunately eradicating it completely, without affecting
fundamental rights, such as privacy and protection of personal data,
may be difficult.
Consumer education and using DRMS platforms backed up by effective
legal enforcement instruments provide a way forward.
On all these issues there has been progress over the past year.
Enforcement
Recently, the Commission issued a proposal for a Directive on IPR
Enforcement. It seeks to approximate enforcement measures and to
ensure that the most effective measures are available throughout the
European Union. We will hear more about this from Mr Thierry Stoll
from Directorate General Internal Market.
New DRMS Platforms and business models
Lawful customers, so far in the majority, have to be enticed with
attractive business models.
The emerging communication and networking technologies can be used to
develop new business models to offer customers on-line products and
services. The right business models backed up by flexible and
effective DRMS platforms can be the rightholders' best weapon against
piracy.
There is a lot of potential for emerging Internet-related services in
this area, both in terms of commercial opportunities and in terms of
user satisfaction. DRMS could open the way to a killer application
for the creation of a mass e-commerce market and the widespread take-
up of broadband.
Consumer education
We appreciate industry efforts to focus on consumer education and
raising awareness. Initiatives like the Digital Download Day are a
very positive step and could be developed further across Europe and
with even more publicity. There could be a role also for public
authorities, at EU and Member State level.
Standardisation
Another area where there have been positive developments over the
past year is in the field of standardisation. A number of standards
for the identification of digital works (or assets) and the
description of their associated rights exist already.
However, there is still a long way to go. An agreed definition of DRM
is missing. And we still need to figure out how to ensure
interoperability between technical solutions, as suggested in the
Copyright Directive.
We believe that open standards introduced at the right time with the
right consensus can be beneficial for all stakeholders. Open
standards facilitate market entry for new solution providers and,
properly implemented, can lead to an increase in customer choice.
Openness and flexibility are essential in order to leave room for
innovation and creativity in the digital environment. Consumers
should not be locked into technological solutions. Stifling of
experimentation and progress needs to be avoided.
Interoperability is essential to respond efficiently to the demands
of the market and consumers. Common and open technological platforms
will enhance interoperability and reduce operational costs.
In this respect, a study commissioned by DG Enterprise to the
European Standardisation Body CEN/ISSS is about to be finalised and
is a first step. It is essential that we keep the dialogue open. The
Commission will continue its facilitation role in this area.
A lot remains to be done. Open, flexible and interoperable DRMS are
far from being widely available.
The question of the role of public authorities with respect to DRMS
standardisation remains open. We believe that legislation in this
area should be a very last resort. Market forces must demonstrate the
commitment to devise solutions acceptable to all stakeholders.
Getting the timing right is also essential for success. A future
legacy of incompatible technical specifications is in nobody's
interest, least of all of consumers.
Levies
Since DRMS enable direct transactions between right holders and users
of copyright protected content, there is a need to clarify the
conditions under which levies can be adapted.
It would be helpful to introduce more transparency and flexibility in
the methods used to calculate and adapt levy amounts to market
conditions. Levies should be seen as a temporary solution, pending
better alternatives in the form of DRMS. This is in the long-term
interests of the Information Society and eEurope. DRMS are a better
deal for right-holders than levies.
In this context, we would be interested in investigating the
feasibility of developing a database that provides accurate data on
the situation in each of the Member States in terms of levies, sales
revenues, and the impact of DRMS-based sales. In the interim, any
data that could be made available to the Commission by industry and
Member States would be extremely useful.
Looking Ahead
The Commission is prepared to continue to play the role of a
facilitator. However, we now need to move into a new and more
difficult phase of this facilitation process.
As already explained, the first phase has served to bring all the
issues and requirements out into the open. Now we face the most
challenging part: developing the common ground the real consensus-
building.
There are however many different interests to take into
consideration. We need strong commitment from all sides to find
common ground. It is up to you today to indicate to the Commission
your commitment to overcome this challenge together. I hope you will
do this here today.
One possibility to envisage a more formal framework, could be a
Memorandum of Understanding, backed by the highest levels of the
companies involved.
Of course this possibility is only of significance if major players
are interested and committed.
This is food for thought, but we would welcome your views on these
suggestions.
Thank you and I would like to wish you a very successful workshop and
most fruitful discussions.
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