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eBook: The Digital Dilemma



http://books.nap.edu/html/digital_dilemma/

   Committee on Intellectual Property Rights and the Emerging Information
                               Infrastructure
                                      
               Computer Science and Telecommunications Board
                                      
       Commission on Physical Sciences, Mathematics, and Applications
                                      
                   National Research Council-[comm4.gif] 
                                      
                                      
                                  Contents
                                      
                          Title Page and Notice i
                      National Academies Statement iii
                                Committee v
                                 Preface ix
                       Acknowledgment of Reviewers xv
                                      
                            EXECUTIVE SUMMARY 1
                                      
                1   THE EMERGENCE OF THE DIGITAL DILEMMA 23
                        An Enduring Balance Upset? 24
                            Scope of the Report 27
                           Origins of the Issues 28
       Technology Has Changed: Digital Information, Networks, and the Web
                                     28
                        Why Digital Information Matters 28
               Why Computer Networks Matter: Economics and Speed of
                              Distribution 38
                              Why the Web Matters 39
                The Programmable Computer Makes a Difference 43
        Technology Has Emerged into Everyday Life, Running Headlong into
                          Intellectual Property 45
                    Intellectual Property Law Is Complex 47
                       Cyberspace Is an Odd New World 49
                      What Makes Progress Difficult? 51
                     Stakeholders' Interests Are Diverse 51
                    There Is a Variety of Forces at Work 52
           Many Threads Are Intertwined: Technology, Law, Economics,
               Psychology and Sociology, and Public Policy 53
            The Problems Are Global, with Differing Views, Laws, and
                      Enforcement Around the World 54
           Potential Solutions Have to Be Evaluated from a Variety of
                              Perspectives 58
                          Road Map for the Report 60
                                  ADDENDUM:
                      The Concerns of Stakeholders 61
                      Creators of Intellectual Property 61
                                Distributors 65
                            Schools and Libraries 68
                           The Research Community 70
                             The General Public 71
           Other Consumers and Producers of Intellectual Property 73
                          Governmental Organizations 73
                         Private Sector Organizations 74
                                  Journalists 75
                            Standards Organizations 75
                                      
   2   MUSIC: INTELLECTUAL PROPERTY'S CANARY IN THE DIGITAL COAL MINE 76
                                Why Music? 77
                           W(h)ither the Market? 78
                             What Can Be Done? 79
                         The Business Model Response 79
           Make the Content Easier and Cheaper to Buy Than to Steal 80
            Use Digital Content to Promote the Traditional Product 81
         Give Away (Some) Digital Content and Focus on Auxiliary Markets
                                     82
                      The Technical Protection Response 83
                                 Mark the Bits 83
                               Reattach the Bits 84
                                A Scenario 86
                  Constraints on Technological Solutions 87
                Industry Consequences of the New Technology 89
                            The Broader Lessons 94
                                      
   3   PUBLIC ACCESS TO THE INTELLECTUAL, CULTURAL, AND SOCIAL RECORD 96
              Public Access Is an Important Goal of Copyright 97
              Access: Licensing Offers Both Promise and Peril 100
                  Access and Technical Protection Services 104
        The New Information Environment Challenges Some Access Rules 106
         The New Information Environment Blurs the Distinction Between
                           Public and Private 107
            Noncopyrightable Databases Present Access Challenges 109
       The Information Infrastructure Is Changing the Distribution of and
                Access to Federal Government Information 111
          Archiving of Digital Information Presents Difficulties 113
        Fundamental Intellectual and Technical Problems in Archiving 116
          Intellectual Property and Archiving of Digital Materials 119
                Technical Protection Services and Archiving 121
                                      
   4   INDIVIDUAL BEHAVIOR, PRIVATE USE AND FAIR USE, AND THE SYSTEM FOR
                               COPYRIGHT 123
            Understanding Copyright in the Digital Environment 123
                             The General Public 124
                               Rights Holders 128
      The Challenge of Private Use and Fair Use with Digital Information
                                    129
                   The Wide Range of Private Use Copying 130
             Arguments That Private Use Copying Is Not Fair Use 132
               Arguments That Private Use Copying Is Fair Use 133
              Private Use Copying: The Committee's Conclusions 135
           The Future of Fair Use and Other Copyright Exceptions 136
           Is "Copy" Still an Appropriate Fundamental Concept? 140
                             Control of Copying 140
       Is Control of Copying the Right Mechanism in the Digital Age? 141
                             What Can Be Done? 144
                                  ADDENDUM:
          Sections 106, 107, and 109 of the U.S. Copyright Law 145
                                      
    5   PROTECTING DIGITAL INTELLECTUAL PROPERTY: MEANS AND MEASUREMENTS
                                    152
                           Technical Protection 153
        Encryption: An Underpinning Technology for Technical Protection
                           Service Components 156
                   Access Control in Bounded Communities 158
         Enforcement of Access and Use Control in Open Communities 159
         Copy Detection in Open Communities: Marking and Monitoring 164
                              Trusted Systems 167
       Protection Technologies for Niches and Special-Purpose Devices 171
       Technical Protection Services, Testing, and the Digital Millennium
                         Copyright Act of 1998 171
           What Makes a Technical Protection Service Successful? 173
        The Role of Business Models in the Protection of Intellectual
                                Property 176
          The Impact of the Digital Environment on Business Models 177
                  Business Models for Handling Information 179
                         Traditional Business Models 179
            Intellectual Property Implications of Traditional Business
                                 Models 180
                       Less Traditional Business Models 181
         Intellectual Property Implications of Less Traditional Business
                                 Models 182
        Business Models as a Means of Dealing with Intellectual Property
                                    183
                        Illegal Commercial Copying 186
        The Impact of Granting Patents for Information Innovations 192
                                      
                  6   CONCLUSIONS AND RECOMMENDATIONS 199
           The Digital Dilemma: Implications for Public Access 201
                         The Value of Public Access 201
       Consequences of the Changing Nature of Publication and the Use of
              Licensing and Technical Protection Services 202
                     Publication and Private Distribution 205
                             Mass Market Licenses 205
             Archiving and Preservation of Digital Information 206
                               Digital Archives 206
                                 Preservation 209
                  Access to Federal Government Information 211
        The Digital Dilemma: Implications for Individual Behavior 212
                  Perceptions and Behavior of Individuals 212
                      Fair Use and Private Use Copying 213
                            Copyright Education 216
     Moving Beyond the Digital Dilemma: Additional Mechanisms for Making
                                Progress 217
                       Technical Protection Services 217
                The Digital Millennium Copyright Act of 1998 221
                              Business Models 224
       The Interaction of Technical Protection Services, Business Models,
                         Law, and Public Policy 225
     Moving Beyond the Dilemma: A Call for Research and Improved Data 225
                         Illegal Commercial Copying 226
       Research on the Economics of Copyright, Use of Patents, and Cyber
                                  Law 227
           Is "Copy" Still the Appropriate Foundational Concept? 230
                Content Creators and the Digital Environment 232
             The Process of Formulating Law and Public Policy 233
          Principles for the Formulation of Law and Public Policy 235
                            Concluding Remarks 239
                                      
                              BIBLIOGRAPHY 240
                                      
                                 APPENDIXES
                     A Study Committee Biographies 253
                      B Briefers to the Committee 261
                   C Networks: How the Internet Works 263
                   D Information Economics: A Primer 271
          E Technologies for Intellectual Property Protection 282
                         F Copyright Education 304
    G The Digital Millennium Copyright Act of 1998 and Circumvention of
                   Technological Protection Measures 311
                                      
                                 INDEX 331
                                      
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Ausgewählte Zitate:

                The Digital Millennium Copyright Act of 1998

     Conclusion: More legitimate reasons to circumvent access control
     systems exist than are currently recognized in the Digital
     Millennium Copyright Act. For example, a copyright owner might need
     to circumvent an access control system to investigate whether
     someone else is hiding infringement by encrypting a copy of that
     owner's works, or a firm might need to circumvent an access control
     system to determine whether a computer virus was about to infect
     its computer system.25 
     
     Point of Discussion: Many members of the committee believe in the
     need to add to the DMCA an exception that would permit
     circumvention of access controls for "other legitimate purposes."
     This change would enable judicial discretion in interpreting
     exceptions to anticircumvention provisions, and would provide
     needed flexibility in the statute for dealing with legitimate
     circumvention activities not anticipated by Congress.
 
     Recommendation: In addition to the currently required Librar-ian of
     Congress study of some of the impacts of the Digital Millennium
     Copyright Act's anticircumvention provisions, broader assessments
     should be conducted of the impacts of the anticircumvention
     provisions of the DMCA as a whole. This broader review of the
     regulations is justified because of their unprecedented character;
     their breadth; and widespread concerns about their potential for
     negative impacts on public access to information, on the ability of
     legitimate users to make noninfringing uses of copyrighted works,
     on research and development in security technology, and on
     competition and innovation in the high-technology sector. This
     review should occur periodically and should include a study of
     impacts of the antidevice provisions of the DMCA.
     
                              Business Models
 
     Conclusion: Both technology and business models can serve as
     effective means for deriving value from digital intellectual
     property. Technical protection mechanisms can reduce the rate of
     unauthorized use of IP, but impose their own costs (in production,
     service, and sometimes customer effort). An appropriate business
     model can sometimes sharply reduce the need for technical
     protection, yet provide a way to derive substantial value from IP.
     Models that can accomplish this objective range from a traditional
     sales model (low-priced, mass market distribution with convenient
     purchasing, where the low price and ease of purchase make buying
     more attractive than copying), to the more radical step of giving
     away IP and selling a complementary product or service.
     
     Recommendation: Rights holders should give careful consideration to
     the power that business models offer for dealing with distribution
     of digital information. The judicious selection of a business model
     may significantly reduce the need for technical protection or legal
     protection, thereby lowering development and enforcement costs. But
     the model must be carefully matched to the product: While the
     appropriate business model can for some products obviate the need
     for technical protection, for others (e.g., first-run movies)
     substantial protection may be necessary (and even the strongest
     protection mechanisms likely to be available soon may be
     inadequate).


           Is "Copy" Still the Appropriate Foundational Concept?
                                      
        The committee suggests above that the notion of copy may not be
   an appropriate foundation for copyright law in the digital age. Where
   digital information is concerned, legitimate copies are made so
   routinely that the act of copying has lost much of its predictive
   power: So many noninfringing copies are made in using a computer that
   noting that a copy has been made tells us little about the legitimacy
   of the behavior. In the digital world, copying is also an essential
   action, so bound up with the way computers work that control of
   copying provides unexpectedly broad powers, considerably beyond those
   intended by the copyright law.
   
     Recommendation: The committee suggests exploring whether or not the
     notion of copy is an appropriate foundation for copyright law, and
     whether a new foundation can be constructed for copyright, based on
     the goal set forth in the Constitution ("promote the progress of
     science and the useful arts") and a tactic by which it is achieved,
     namely, providing incentive to authors and publishers. In this
     framework, the question would not be whether a copy had been made,
     but whether a use of a work was consistent with the goal and tactic
     (i.e., did it contribute to the desired "progress" and was it
     destructive, when taken alone or aggregated with other similar
     copies, of an author's incentive?). This concept is similar to fair
     use but broader in scope, as it requires considering the range of
     factors by which to measure the impact of the activity on authors,
     publishers, and others.
     
        The committee recognizes that this undertaking will be both
   difficult and controversial but suggests, nevertheless, that such an
   investigation is likely to prove both theoretically revealing and
   pragmatically useful.
   


ralf
-- 
http://ME.IN-berlin.de/~rws/