M.E.L.O.N.

Music Biz: MySpace Music

by Howie Cockrill

The music industry is all abuzz over the long-awaited announcement from MySpace executives that the social-networking behemoth is moving forward with extensive, formal integration of music into the website. 

MySpace’s initial focus as of the April 3rd launch is on bringing in major label content. 

MySpace has officially partnered with three of the four majors – Sony BMG, Universal and Warner.  EMI is expected to join up soon, with delays being attributed to recent management restructuring.

DRM: Economic Theory

In the previous DRM articles, I’ve looked at how the Incentive and Labor Theories impact the way people argue DRM issues on both sides.

This article will focus on Economic Theory and DRM.

Economic Theory is cynical of the Labor and Incentive Theories as it looks through the eyes of Homo economicus, the rational self-maximizer. 

The basic assumption in Economic Theory is that in market scenarios individuals will act rationally to get the highest level of utility or value for the least cost.

In an economic rhetoric, the fundamental purpose of copyright is to create ownership rights in creative works in order to commodify them. 

Why is it in the best interest of society to commodify creative works?  Because doing so creates wealth and social order. 

DRM: Locke's Labor Theory

In the last DRM article, I discussed Incentive Theory as it applies to the debate over DRM.  In this article, I will focus on Locke's Labor Theory and DRM. 

Originally applied to real property, Locke’s theory of labor has since gained a strong foothold in intellectual property, especially copyright law, and especially in Europe. 

The Labor Theory consists of 3 general principles and 2 caveats. 

The 3 principles are:

1. an individual owns his body;
2. an individual owns his labor; and
3. an individual owns the fruits of his labor. 

The first two principles combine to produce the third. 

Locke believed that people have a natural ownership right in their bodies, and by extension in the labor of their bodies to create or produce.   As applied to copyright, this means that people have natural ownership rights in their creative works.

DRM: Incentive Theory

The previous 2 DRM posts discussed the definition of DRM, gave examples of DRM methods and discussed internet business models utilizing DRM.

In this article, I will begin to explore the rhetorical roots of the various arguments for and against DRM.  This way - next time you're at a cocktail party and someone starts discussing DRM, you'll be able to blow their mind with your depth of understanding. 

Yes - everyone seems to have an opinion on this controversial topic.  But as the entertainment and technology industries search for commercial and legal equilibria between authors and users of digital content, it is important to look beyond the face value of their various DRM proposals.

DRM: Primer Part 2

DIGITAL CONTENT BUSINESS MODELS

In Part 1 of this article, I discuss an overview of what Digital Rights Management (DRM) is, some basic examples of DRM and the arguments from copyright owners and consumers on this controversial technology.

In Part 2, I will outline 5 business models that have been proposed by copyright scholars to utilize DRM technology to offer digital content online.  Of course these are not the only available models, but I find these models either prevalent or at least thought-provoking. 

These models vary depending on how they deal with three aspects of digital content:  access, copying and distribution.

DRM: Primer Part 1

BACKGROUND:

The entertainment industry is currently moving through a period of trial and error as it attempts to adapt to and capitalize on the market for digital copyrighted content.  Old business models translated wholesale to the internet are proving inadequate, and new and hybrid business models are being suggested and tentatively applied. 

As copyrighted content like music and film moves online and is accessible to millions of people worldwide, the debate between copyright owners and content consumers has grown fiercer – with the owners demanding stringent control over their property and consumers demanding convenient and affordable access to that property.

Enter – Digital Rights Management (DRM), the application of technology to control access to and use of digital content. 

The perfect DRM has been the “holy grail” search of content owners since the advent of the internet.  When one looks at the market for copyrighted content over the past two decades, the reason behind the search for the best DRM is clear.