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Preventing Piracy in Music and Video 20 August 2005

In this paper we discuss. Preventing Piracy in Music and Video using Digital Rights Management. This is a practical, jargon-free guide which provides both an overview and enough technical information to allow effective and informed decision making. Why What the issues and losses are. Are there alternatives? How much of an issue are these losses? When At what stage should you be thinking of DRM if you are implementing an on-line music or video service? What What should you take into consideration when choosing a system? How How do you implement a system? We give a detailed, jargon-free, end to end description of the whole process.

Dr Mark Baker. August 05.

Copyright 2004-2005 AegisDRM Ltd. All Rights Reserved. AegisDRM Ltd l ogos, and trademarks or registered trademarks of AegisDRM Ltd or its subsidiaries in the EU, United States and other countries. Copyright 2004 AegisDRM Ltd. All Rights Reserved. Other names and brands may be claimed as the property of others. Information regarding third party products is provided solely for educational purposes. AegisDRM Ltd is not responsible for the performance or support of third party products and does not make any representations or warranties whatsoever regarding 1 quality, reliability,DRM White Paper of these devices or products. functionality, or compatibility

Executive Summary
Overview If you are concerned about preventing piracy of your music and video content, a new class of technology products allow simple, non-invasive protection of content from sharing and piracy.

Music publishers simply cannot remain competitive working in an environment in which the ethos is Buy once copy and share forever. Digital music and Video represent fields of tremendous opportunity the ability to significantly reduce capital investment required to launch new products, to reduce distribution costs, reduce the cost of piloting and testing new markets, remove the need for physical stock or inventory and monetize back catalogue. The risks are significant from casual copying and piracy are significant, fully quantified and exist immediately the digital content is distributed in any form on CD, DVD or any other channel.

Offering downloads without DRM

Digital Rights Management is the only effective way of minimizing these risks while maximizing monetization and control. To avoid these problems in 2005 Time Warner Inc. chose to protect over 40,000 tracks released through the TuneTribe music store using AegisDRMs Multimedia Protector.

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Business Challenge
The challenge is to exploit that opportunity to build market share and overall market size while overcoming the issues of music and video piracy and peer-to-peer sharing. Those take up the challenge at the right time, supported by the correct technologies stand to gain while those who dont adapt are already suffering and will lose share and profits - or go under. Why Protect? What are the threats? The threats fall into two broad categories, those from casual downloading, from networks such as Kazaa and Madster and those from organised piracy. In terms of music, casual downloading and peer-to-peer networks are responsible for 3.6 billion songs illegally downloaded each month in the United States1. In the UK sales predicted sales of 1.5bn on recorded music between 2002-2004, were reduced to 858m because of downloads according to the British Phonographic Industry2. Smaller music and video publishers are significantly more vulnerable as they lack the established retail outlets and marketing resources to push their legitimate hardcopy content in competition with free, exchanged files. In terms of organised piracy 1.2 billion pirate music discs were sold in 2004 - 34% of all discs sold worldwide3. Sales of pirate music exceed the legitimate market in a record 31 countries in 2004 - including China (85% of sales are pirated copies), India (56%), Indonesia (80%), Mexico (60%), Pakistan (59%) and Russia (66%)3. Without DRM typical revenue losses for a site selling 50,000 tracks a month at 99 each will therefore be $28,314 per month. ROI is therefore 3000% Without DRM typical revenue losses for a site selling 1,000,000 tracks a month at 99 each will therefore be $566,280 per month. ROI is therefore 12000% What? What should you take into consideration when choosing a system? (1) Will you DRM protected files work on the largest number of portable devices? AegisDRM does.

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(2) Its it ready, tried and tested with a major outlet like TuneTribes use of AegisDRM? (3) Will your DRM provider promise to do the job right first time, every time? AegisDRM do. (4) Does your DRM provider provide a business critical service? Do they offer a "first time done right" guarantee so that you'll never pay for the same service twice? AegisDRM do and believe in doing the job right the first time, every time. This means they don't intend to have to return to fix the same thing twice and if for some reason they do, you don't pay, no matter what it takes, including parts, labor, and anything else necessary. (5) Does your DRM provider provide an "up-time" guarantee? If your server goes down as a result of our oversight or error with AegisDRM there is no charge for the time, materials, etc, to bring you back up and prevent the problem from ever occurring again. You may have paid to install a DRM system then paid to fix it then paid to fix it again? While some companies profit two or three times over for "emergency service," AegisDRM insures it doesn't happen in the first place! If we specified, installed, and maintain your systems, and it ever goes down as a result of our errors, oversight, fault, etc, we'll fix it for free. (6) Could you be stranded without support in a critical time? AegisDRM Gold level customers always have direct emergency 24/7/365 access to the a fully empowered project manager who can and will pull out all the stops to get your project working or to fix your problems. There's nothing more frustrating than not being able to get a hold of your technology provider in an emergency. And even with all of the technical (call forwarding, answering services, etc, etc) systems we have in place to insure that never happens, customers always have the worry that a call could slip through. That's why our Gold level customers always have direct emergency access to a fully empowered senior project managers mobile number for emergencies. When? At what stage should you be thinking of DRM if you are implementing an on-line music or video service? If you are a multi billion dollar organization or a Garage band going commercial there is only one answer if this is supposed to be a business proposition YOU MUST START WITH THE DRM FIRST then move on to the commoditized issues such as web and database design, ecommerce and payment systems, server selections etc. Work with your DRM provider throughout the project life cycle. Almost every other issue can be decided on at the last moment or chopped and changed at will but the security and control of your content is going to be a linchpin which the rest rotates around whether it is signing artists or ensuring that you can monetize existing content. How? So how do you implement a system? We can do it for you or you can just follow our step by step description in the next section where we give a detailed, jargon-free, end to end description of the whole process.

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Solution Description
The AegisDRM Multimedia Protection system is designed to be best of breed in simplicity and ease of use. It can be installed with a single click on any PC running Microsoft Windows from CD or download (12 MB). When it is installed just follow the simple steps below to protect batches of files. Full help is also included with the program. Video and Audio can be protected. First Create a new Project file

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Then add your wma files(s) to it:

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After you add your wma file(s) then you can press this button:

Your WMA or WMV file now has a license in it. If someone tries to play the licensed WMA or WMV file, they will get a message about how to get the DRM license.

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After you downloaded Windows Media Encoder 9 and run it you should get a screen like this one:

Click Next. After you click next you should get this screen:

You MUST hit I accept in order to install it. After that click Next and follow the on screen instructions

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Server Requirements for AegisDRM Multimedia Protector: Windows Media Rights Manager 10 SDK (supplied) Microsoft Window 2003 with IIS or a web server capable of ASP Note that AegisDRM will set up your server for you if required so you need no do any of this but if you do want to do this yourself this is how you do it. Install Media Rights Manager 10 SDK: Create the following directory systemroot\inetpub\wwwroot\wm, where systemroot is where your windows directory is located ie c:\windows Copy all files from systemroot\WMSDK\WMRM10\samples to systemroot\inetpub\wwwroot\wm . Creating License Keys: 1. Open your favourite text editor such as notepad 2. Copy the following code and put it into the document. (Copy and Paste) '''----Start of code ----''''' Dim WSHShell Set WSHShell = WScript.CreateObject("WScript.Shell") dim dim dim dim keysobjs privkey pubkey seed

Set keysobj= CreateObject("wmrmobjs.WMRMKeys") keysobj.GenerateSigningKeys privkey, pubkey seed = keysobj.GenerateSeed() Dim cmd ' Write the private key to privkey.txt. cmd = "command.com /C echo " + privkey + " > privkey.txt" WSHShell.Run cmd,0 'Write the public key to pubkey.txt. cmd = "command.com /C echo " + pubkey + " > pubkey.txt" WSHShell.Run cmd,0 ' Write the license key seed to seed.txt. cmd = "command.com /C echo " + seed + " > seed.txt" WSHShell.Run cmd,0 '''---End of code---''' 3. Save file as WMRMKey.vbs 4. Run the WMRMKey.vbs file (double click on it), Three text files are created (seed.txt, pubkey.txt, and privkey.txt) in the same directory as the script file. Each text file contains a value. In practice these values should be kept secret. - generated keys are different each time we run the WMRMKey.vbs file.

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Editing the Global.asa file: You have to edit some information that Windows Media Rights Manager needs to package and license files. 1. Edit the file Global.asa file in the systemroot\inetpub\wwwroot\wm to edit the following information. Side Note: You can use a normal text editor such as notepad. a. siteurl: The name of your server followed by /wm, for example http://your-server/wm or http://localhost/wm . (Note: Use the localhost one if you plan to use this on your computer) b. seed: Your license key seed that you made before. Copy and paste what is in seed.txt. Important: When you copy it be sure not to include the spaces at the end c. contentserverpubkey: Your public key which you copy and paste from pubkey.txt. Important: When you copy it be sure not to include the spaces at the end d. contentserverprivkey: Your private key which you copy from privkey.txt.. Important: When you copy it be sure not to include the spaces at the end 2. Ignore the other lines in the global.asa file, those lines are related to Windows Media Rights Manager version 1 3. Save the updated global.asa file. Enabling the global.asa file : 1. Click the start menu, point the mouse to Programs, then Administrative tools, then click Internet Services Manager 2. Expand the icon for your server, then expand Web Sites, and then click Default Web Site. 3. In the content pane, right-click the wm directory and click on properties.

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4. On the Directory tab under Application Settings, click Create.

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5. In Execute permissions, click Scripts and Executables, and then click ok.

6. Start and stop the world wide web service (at the command prompt, enter Net stop w3svc, then enter Net start w3svc).

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Getting a Certificate : 1. You must get a certificate and revocation list for each computer that runs Windows Media License Service. Complete this process on one computer before starting the process on a different computer. 2. From each computer running Windows Media License Service, go to the Microsoft Web site http://licenseserver.windowsmedia.com/, click Enrol to get a new certificate, and then follow the instructions to begin the enrolment process. You will receive an e-mail message containing the token you need to complete the enrolment. 3. Return to http://licenseserver.windowsmedia.com/, click Complete the enrolment with your e-mail confirmation, and then follow the instructions to complete the enrolment. 4. Return to http://licenseserver.windowsmedia.com/ and click Download the latest License Service Information to install the latest revocation list. Trying out the License : To use the sample pages to package a file and test license delivery: 1. Open http://<your_server_name>/wm/package.asp and fill out the form: Specify the Windows Media file to be packaged. Specify the output path and file name for the packaged Windows Media file (use a file name that is different from the source). Note: Make sure the output folder allows Change permission to Everyone. Otherwise, an "Access is denied" message appears when you try to package files. 2. Click Package.

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3. To test license delivery, play the packaged Windows Media file. If you use Windows Media Player 7 or later, you can change the preferred license delivery method (silent or nonsilent) by selecting Options on the Tools menu, clicking the Privacy tab, and then selecting or clearing the Acquire licenses automatically for protected content option.

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Solution Benefits
Effectively solves your piracy, casual passing on and file sharing problems Can be set up quickly and simply Can be integrated with third party payment systems Reliable and dependable. You wont be stranded.

Pricing

Solution Type AegisDRM Gold Server large scale music publishers thousands of tracks millions of downloads

Price $39995 US Ready-to-go licensing, implementation and training package. $9995 US Ready-to-go licensing, implementation and training package. +15%

AegisDRM Silver Server medium scale music publishers thousands of tracks < 1 million downloads per month 12 month support contract

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Contact Us

Name:

Ms Beth Hawthorne

Address: 4th Floor, 494 Midsummer Boulevard, Milton Keynes, MK9 2EA, UK Email: white_paper_support@aegisdrm.com

Website: www.aegisdrm.com Tel: Fax: 00-44-1908-255-970 00-44-1908-255-972

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More Information
On the Web http://www.aegisdrm.com References 1. Music Piracy and The Audio Home Recording Act, 0023 Duke University Law. & Technology Review 2002. 2. Record labels count cost of music piracy, Dominic Timms, The Guardian (UK), April 20, 2005 3. IFPI Commercial Piracy Report 2005, 2005 Also in this Series DRM White Paper I: Preventing Piracy in Music and Video AegisDRM August 05 DRM White Paper II: Protecting Documents in a Virtual Data-Room Environment AegisDRM August 05 DRM White Paper III: Preventing Documents Leaks in a Collaborative Editing Environment AegisDRM August 05 DRM White Paper IV: Preventing Piracy in Games and Software AegisDRM August 05 DRM White Paper VI: Protecting Web Site Content On-Line AegisDRM August 05 DRM White Paper VII: Protecting PDFs and Web Site Content Off-Line AegisDRM August 05 DRM White Paper VIII: Compliance Using Digital Rights Management AegisDRM August 05 DRM Boot Camp: Course Notes AegisDRM August 05 http://demo.aegisdrm.net

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Copyright 2004-2005 AegisDRM Ltd. All Rights Reserved. AegisDRM Ltd l ogos, and trademarks or registered trademarks of AegisDRM Ltd or its subsidiaries in the United States and other countries. Copyright 2004-2005 AegisDRM Ltd. All Rights Reserved. Other names and brands may be claimed as the property of others. Information regarding third party products is provided solely for educational purposes. AegisDRM Ltd is not responsible for the performance or support of third party products and does not make any representations or warranties whatsoever regarding 20 quality, reliability,DRM White Paper of these devices or products. functionality, or compatibility