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The Rights Management Primer: A Discussion of Acquisition, Licensing, and Using Content in a Digital Environment

Developed and written by members of the Software & Information Industry Association’s Content Division Online Content Committee Rights Management Working Group

Introduction

This primer presents an overview of the issues associated with rights management in the digital space. It serves as a practical guide to rights management and provides an introduction to basic tenets of U.S. copyright law. The paper provides information relating to copyright protection and rights management issues that all businesses ought to consider before distributing content or code electronically. In addition, it discusses common concerns about copyright protection as it relates to rights management and suggests initiatives SIIA can undertake to educate information consumers on proper conduct with regard to the use of copyrighted material. Effective Copyright Clearance Rights management is a complex practice encompassing a wide variety of issues associated with granting and obtaining rights, as well as compensation for certain uses of copyrighted materials.

Central to effective rights management are processes that control and track the uses of copyrighted material and offer payment mechanisms to the customer. Technologies associated with the Internet and other digital delivery platforms facilitate simpler and more rapid rights clearance and payment processes, but they also make it easier to obtain, use and re-distribute copyrighted works without authority or compensation, thus increasing the potential for piracy, whether intended or not. Software and content publishers recognize that effective rights clearance processes for traditional and new media applications will reduce clearance costs and create opportunities in new markets by making it easier for customers to understand restrictions, obtain permissions and compensate copyright owners for use of their materials. Automatic rights clearance, usage tracking processes and related enabling technologies developed and maintained by rights clearinghouses are of particular interest to owners of digital content because of their effectiveness in lessening the threat of increased piracy activities as content that was once paper-centric migrates to digital media. This primer discusses common concerns about how rights-holders can protect copyright in the digital space. Topics include:

This document is a compilation of the work done by the Online Content Committee Rights Management Working Group (OCCRM). The OCCRM was one of three working groups--Rights Management, Distributed Learning, Business Models--that arose out of discussions among SIIA members on what are the key issues for online content providers. Participants in these working groups cover a range of companies big and small across the software and information industry.

This group's mission is to identify, explore and communicate marketing and business models or issues as they relate to online content.

The Evolving Need for Digital Media

In this age of digital information, the print equivalent of millions of pages of content is dynamically published and made available worldwide to individuals and organizations every day online.

Publishers consider the unauthorized use of copyrighted information, including unauthorized copying, distribution, display and revision, as the most serious risk associated with making their valuable proprietary materials available online. The technological ease with which piracy can occur is only exacerbated by widespread misconceptions existing within user communities regarding rights to access and use of copyrighted content that is distributed in digital form.

The ability to rapidly access, process and act upon information is one of the key competitive advantages of successful organizations and individuals, and the Internet is becoming the de facto method of distributing time-sensitive content. Yet, the needs of digital information owners and consumers are shaped by a number of factors that are very different from those in the print-centric world, specifically:

Explosive growth of accessible “useful” information

The Internet has opened the information floodgates. Organizations and individuals can access and receive continuous streams of information/content from numerous external sources such as online information services, Web sites and fee-based dial-up subscription services. Timeliness of such information is often as important as the information itself.

High desirability of sharing “found” information and the emergence of e-mail

Information arriving at a user’s desktop seldom concludes its journey with the original recipient. In recent years, it has become much easier—and in some institutions or among some user groups, common practice—to integrate specific content from multiple sources for forwarding by e-mail to another individual or to a Web site, intranet or extranet. Rarely is there a rights management infrastructure in place to manage such uses.

Ease of information and content modification

Tools to edit text and images are readily available , and the form in which most Web content is delivered today makes it simple to apply such tools to create derivative works. In the traditional print-centric world, it was considerably more difficult to take content from third parties and seamlessly modify it for re-publishing.

Ownership of digital assets

Logistics of the rights-holder in asserting and enforcing ownership rights in the global Web environment present new challenges for owners and users alike. As with printed materials, those published digitally are frequently comprised of many components (text, pictures, graphics, etc.), the rights in each of which may be owned by different parties. Digital publishers, as with copyright holders in any medium, have the exclusive right to control the publication and use of their copyrighted materials. Thus, to secure rights in each of the individual components, the requester would have to identify each person or company that owns the rights to these components and seek multiple permissions for use. For example, if one wished to distribute an audiovisual clip, one would have to secure rights from the copyright as an underlying literary work (like a book or screenplay) upon which the clip is based and any musical works contained in the clip. Unintended copyright infringement is not uncommon in the print world, but its potentially disastrous, multiplying effect online is, and should be, of growing concern to copyright owners and users. Rights clearance and compensation processes can do much to correct this problem, by helping ensure that users: (a) are familiar with the principles set forth in the copyright laws requiring that permission be obtained before certain uses of a copyright work are made; (b) are aware that they should generally seek permission to copy or otherwise use a copyrighted work; (c) have little or no difficulty locating or contacting copyright holders or their agents; (d) are able to obtain a timely response to questions about use of the materials; and (e) receive accurate information about exceptions in the copyright laws, including the "fair use" doctrine, which may allow them to make certain uses of the copyrighted work without permission or payment.

The following factors are crucial to achieving success in bringing copyrighted works to the digital marketplace: 1. Users need to be aware of the copyright(s) in any particular work and of the terms under which they are authorized to use it. 2. Rights owners need to consider whether to facilitate new uses of their copyrighted materials and how best to do so. 3. Owners, publishers and users of information must acknowledge a common interest in developing efficient ways to monitor use, administer use-related payments and/or reporting obligations and prevent or detect unauthorized use. 4. Copyright owners must stay abreast of new laws and technologies that affect the enforcement of copyright protection on a global scale.

Consumer needs will change along with evolving technologies, leading to new distribution methods and new uses for digital media . Successful commercial exploitation of copyrighted works will require even greater efforts on the part of copyright owners and consumers to remain aware of commercial, technological and legal changes that are shaping the global information marketplace. With the help of its member companies active in the delivery of online content, SIIA has created this primer as one step in better informing copyright owners and their customers of the that process. SIIA is well placed to be the leading international industry forum for these initiatives.

Ways to Protect Copyrighted Material

Both copyright owners and users view today’s Internet primarily as a “sampling” medium. Given the open nature of the Internet, users have generally taken the attitude that anything posted to a Web site can be used without limitations, and copyright owners have responded largely by publishing limited amounts of content on Web sites and inviting visitors to access and view that content without charge. Such limited offerings, however, cannot long sustain a medium whose very existence and greatest potential is the availability, access and use of information products and services.

In order for even more and better quality copyrighted material to appear on the Internet, however, publishers will require the means to protect adequately their property rights and receive compensation for their efforts. Most copyright owners acknowledge a greater risk in placing their copyrighted “crown jewels” online in open networks, yet there are many tools available to them to ensure that such risk is minimized. These include: 1. Copyright Law 2. Licensing 3. Education 4. Rights Management Technology and Other Technological Protections

Copyright Law

The term "copyright" denotes the exclusive, statutory rights granted to authors to protect their "original" works of authorship for a limited time. In the United States, Congress has the power to craft copyright laws, based on the Constitution’s recognition of the need to promote progress in the arts and sciences, but most nations have adopted similar statutes for similar purposes. These rights granted to copyright owners generally include the right to control the reproduction, distribution, public performance and display of a copyrighted work and to control the making of adaptations of and modifications to the work (referred to as the making of a derivative work). Most nations’ laws also include limitations and exceptions to these rights that may restrict the copyright owner's ability to exercise them. In the United States, the most notable of these exceptions is the "fair use" exception.

Licensing

License Agreement For digital works, rights-holders typically grant others permission to use their intellectual property by means of a license agreement that defines specific conditions and limitations on use (See Appendix C: Glossary of Terms). A license agreement is a vehicle through which a contractual relationship between the rights-holder and an entity (e.g., individual or institutional customer, online aggregator or distributor) is established, which grants permission and authority to use or sell the rights-holder's intellectual property. Licensing agreements have helped facilitate greater availability of online materials, particularly through content aggregators, (e.g., Dow Jones and LEXIS-NEXIS). Most of these aggregators own proprietary online services that re-distribute rights-holders’ content to subscribers (third parties) through delivery channels owned and controlled by the aggregators. The majority of information “delivered” to corporations or other large organizations is via these kinds of “infomediaries.” These services are characterized by their ability to collect large amounts of information from multiple sources and either make it all available for access through one source or to customize and deliver the “right” information to the self-selected individuals or groups, in the right form, at the right time.

When licensing a third-party to engage in a particular use of a copyrighted work, it is advisable for both the copyright owner and the distributor or aggregator to enter into a license agreement specifically describ ing the uses that the licensee and its customers can make of the work and the limitations on such uses, as well as any other pertinent provisions.

A license agreement is an extremely effective legal tool for protecting copyrighted material from improper use. It allows copyright owners to specify in sufficient detail what uses the third-party licensee may make of the copyrighted materials designated in the license. Although there is significant leeway in the terms and conditions that may be included in a contract or license agreement, it is significant to note that all contracts and license agreements are subject to antitrust and other laws, including in some instances the limitations and exceptions to exclusive rights noted above.

Where the copyrighted works are time-sensitive—such as when the value of the work exists only for a short period of time or the work requires frequent updating by the rights-holder in order to retain its value—it may be necessary to create and employ elaborate protective mechanisms to prevent copying and use. An example of this type of information would be a municipal bond price quotation service where the prices change constantly. Because the value of the work will evaporate before many unauthorized uses can be detected and halted, protective measures beyond statutory rights and carefully crafted licenses may be necessary. In such cases, the contractual right to suspend updates if unauthorized use is detected may be of more immediate benefit and less expensive to the rights-holder than litigation for breach of contract or infringement of copyright.

Rights owners wishing to contract directly with large subscriber populations through the Web should consider the advantages of improved licensing controls, enforcement and digital rights management technologies (See Rights Management Technologies below) to track and report data usage and harmonization varying national copyright and contract laws, which will assist in developing terms and conditions that can be enforced on a global basis.

Two types of license agreements often used in conjunction with electronic distribution license agreements illustrate the opportunities and challenges associated with control over use of online digital material:

Subscriber Agreement

Both rights-holders and authorized third-party distributors use subscriber agreements that allow clients to access content subject to various restrictions, the most common of which is limiting or prohibit ing re-distribution to third parties. Users who wish to gain access to the copyrighted material available on these kinds of online services must first accept the conditions of the comprehensive “terms of use” licenses included in the subscription process.

The challenge here is that most entities and individuals previously regarded as subscribers now have the technological capability to re-distribute or even republish digitally—many of them from Web sites outside the United States. Publishers are faced with strictly and forcefully enforcing existing contractual limitations on re-distribution by subscribers or adapting their subscriber agreements to authorize re-distribution under specified conditions. Whether publishers choose to end users around the world or preserve a direct contractual link with their subscribers, they must pay increasingly close attention to the contracts and licenses they sign.

The good news is that the introduction of online agreements and digital rights management technologies can facilitate a wide range of options for the development of license agreements and procedures. Rights management in this case means harnessing these technologies to achieve the best fit with commercial aims and user requirements.

Site License

Rights-holders and authorized third-party distributors often employ what is commonly known as a “site license.” A site license is a license from a rights-holder or an authorized third-party distributor that permits one or more users at a designated location to make limited use of content at a designated location or locations, often to a specified number of users.

Today, the advent of mobile access to information has for all practical purposes removed geographical limitations on access to information. Some corporations regard the entire global organization as a single virtual site, and nonprofit institutions are forming consortia that require new considerations in site licensing. The challenge here is to preserve the administratable simplicity of the site license and efficient delivery to the end user while providing adequate protection and remuneration for the rights-holder.

Education

Educating End Users and Others: “Rules? What Rules?” Generally, corporate legal counsels, information specialists (particularly librarians) and publishing professionals, understand the legal obligations and responsibilities associated with using copyrighted material. However, many consumers are not familiar with the rules of the road for copyright protection. It is therefore essential that rights-holders seek to educate end users about proper conduct with regard to the use of copyrighted material.

The passage of the Digital Millennium Copyright Act in 1998 makes such an effort timely. The act affirms that copyright laws do indeed apply to digital materials. Although the law is new and virtually untested, the rules it brings to the marketplace, along with the emergence of user friendly Web-based copyright clearinghouse services, requires new efforts on the part of copyright owners to educate the end-user community.

Confusion among both copyright owners and users is understandable. Unlike the print world, where bulk or individual sales are long-established and familiar, user needs in the digital marketplace are driving a multitude of new and unique applications of digital content in ways never anticipated by the original copyright owners and publishers. Standard approaches for terms of use (i.e., licensing provisions) and business terms (i.e., pricing) are generally lacking in the digital content publishing community. “Nonstandard” requests are commonly met with ad hoc case-bycase deal-making or blanket-use denials. The cost and inefficiencies of this approach are borne most obviously by users of content, but content providers also suffer unquantifiable losses from missed licensing opportunities.

When Web site owners encourage people to visit and use their information, they must keep in mind that end users generally do not know or do not care about the limits of fair use in the Web environment. It is therefore incumbent upon the copyright owner that wishes to succeed in the digital marketplace to ensure that online users understand the importance of respecting copyright laws and property rights and that they are provided reasonable opportunities—and timely responses—to requests for uses of copyrighted materials that may not be “standard.” Web site operators might find it helpful to include clear and concise notices of what permissions they normally grant for various copyrighted materials available through the site.

One convenient option are mechanisms utilizing a common software platform and setting forth rules governing specific use rights that are now being developed. These “automatic rights clearinghouses” can electronically manage the complete scope of various rights and permissions processes that publishers control, such as ownership verification with the use of encryption technologies, usage tracking and transaction processing.

Rights Management Technology and other technological protections

Internet technology can now make it easier than ever before to secure online copyright protection. Digital rights management (DRM) systems enable copyright protection, distribution, usage and payment for digital content such as text, music, images or software via any electronic medium. Recently, several companies have emerged that provide core technology for digital rights management and serve as clearinghouses for use permissions for copyrighted information. These entities deliver digital rights management solutions that implement sophisticated rights and permissions business models, combined with a back-office rights clearance infrastructure for managing rights.

This section provides a brief overview of the technologies and applications , although not specific brand names, currently available in the marketplace.

Rights Modeling

The most basic component of any DRM technology is the model of rights that it uses. Rights models are sets of metadata that can specify types of rights (e.g., print, view, play, copy, redistribute), types of users who can acquire rights (e.g., subscriber, one-time user, student discount, site licensee), extents of the rights (e.g., print X times, view for Y days, play for Z hours) and costs associated with each of those rights. Two technologies that include rights modeling schemes have been proposed as open standards. Both are based on the XML metalanguage: (a) Digital Property Rights Language (DPRL), a very rich language for modeling rights that is meant to be used in encryption-based schemes (See below). DPRL originated at Xerox PARC research labs. (b) Information and Content Exchange (ICE). ICE is a protocol that supports content syndication, i.e., automated piecemeal licensing of content over the Internet. Its definition is overseen by an Authoring Group that includes Vignette Corp., Microsoft, Sun Microsystems, Adobe and several other technology and media companies.

Some DRM systems use these technologies; others use their own rights modeling schemes.

Authentication

Authentication of content sources and authentication of users are both important aspects of any digital rights management systems. In some cases, it is necessary to verify the source of content and that it has not been altered before the user views it. For example, assume that an analyst writes a negative report on a software company’s newest release and distributes it through a DRM system. It would be in the software company’s interest to change the negative report to a positive one. Content source authentication ensures that this cannot occur without being detected.

User authentication verifies the identities of users who want to access and use content. This could take the form of a password, a cookie on a user’s machine, a token generated by a SecurIDTM-type hardware device or other technology-based tracking solutions. In gathering and using information about customers, however, Web site operators and copyright owners must be clear in informing users of the reasons for gathering personally identifying information and the manner in which that information will be used.

Secure Containers

Many DRM schemes include a “secure container” (sometimes called a “digital wrapper”) that protects content from unauthorized access by holding it in an encrypted state. Secure containers include information (metadata) about the content—generally the rules, based on rights models (See above), under which users can access it. Users go through an authentication process to access the content; then the content is "unwrapped" and presented in its native state (HTML, Word document, etc.)

For example, suppose an MP3 digital music file is purchased online. The MP3 file is wrapped with an encryption device that protects it during shipment. The music publisher, or its designated service provider, executes a digital license, or key, for consumers that allows them to unwrap the MP3 file. Once the file is unwrapped, the consumers are bound by the terms and conditions of the license, which may allow them to play the file on the PC, download it to an external player or transfer it to a CD.

Most DRM systems with secure containers do not give the user access to a “naked” (copyable) file after authentication. Instead, they provide a piece of client software that displays or plays the content in a restricted fashion, prohibiting things like printing and making a file copy). Because of the highly flexible nature of personal computers, such systems are not 100 percent foolproof, but they act as strong deterrents to unauthorized copying.

Similarly, in image rights management, developers of the upcoming JPEG2000 image file format are investigating secure container technologies. ISO and DIG (the Digital Imaging Group – http://www.digitalimaging.org) are discussing a file format that includes a mandatory form of metadata containing rights information referred to as a “license plate” for each image. A JPEG2000 compliant Web browser would first read the license plate and then decide if such an image could be displayed within a page depending upon where, or who, was viewing the page. Other rights, such as the right to copy the image from the Web page would also be controlled or accessed through the license plate.

Some DRM systems use hardware technology, instead of (or in addition to) software, to protect content. These are somewhat like the “dongles” that software vendors used years ago to authenticate users’ PCs and prevent unauthorized use. This type of DRM system requires that users install special devices in their PCs or in some cases purchase PCs with such devices pre-installed.

Finally, some DRM systems do not use technology to protect content at all. Of these, some rely on the “honor system,” which can often make it as easy as possible for users to obtain rights to content but which can also frustrate copyright owners when unscrupulous or uninformed users do not respect the rights in the content presented. Others, like the ICE-based content syndication applications, are meant to automatically transfer content and rights from one organization to another in a trusted relationship, where terms are enforced by written contract instead of by technology.

Clearinghouses

Most DRM solutions include a back-office operation that performs several functions. At a minimum, clearinghouses maintain a database of users for authentication purposes and allow administrators to add or change user information. Clearinghouses also meter usage of content and, when appropriate, initiate e-commerce transactions so those users can pay for rights.

In addition, clearinghouses can record and compile specific information about content usage. Such information is, in many cases, of more value than any price that a publisher might charge for access to content. The collection of data created by the consumer’s interaction with content should help publishers build knowledge and understanding of their particular marketplace and adopt new marketing models. For example, an online information publisher adopts a daily push model, distributing thousands of pieces of information to businesses worldwide. A sophisticated backoffice system collects usage audit records from these businesses and utilizes data mining capabilities so that the publisher knows what types of information his business customers utilize. From this knowledge, the publisher better segments his customers and provides more targeted information services. Again, in employing such practices, clearinghouse operators and publishers alike must be mindful of customer concerns regarding collection and use of personally identifying information.

This chapter notes many and varied ways of protecting intellectual property. All parties involved need to determine which method(s) of protection is best for their individual case, product or partnership and business needs.

Electronic Uses of Content

Changing technology and demands for content have also brought about a continuing evolution in the types of uses of copyrighted materials. Among the most recent and popular developments in the digital marketplace or particular note to copyright owners are: 1. Web Linking 2. Web Framing 3. E-mail Forwarding 4. Other Print Uses of Content

Web Linking

Web linking is the practice of linking a Web site to a third-party site. Web sites may require permission of the owner of any copyrighted material residing on the third-party Web site. In many instances either the copyright owner or the webmaster of the third-party Web site may be concerned over raising the implication of any relationship between the linked sites (e.g., a link between a publisher of a catalog of cheerleader attire and a pornographic site). Whether linking is problematic depends significantly upon the manner in which the Web sites are linked as well as the nature of the Web sites that are linked (e.g., Microsoft-Ticketmaster link where Microsoft linked deep into Ticketmaster's Web site, thereby bypassing Ticketmaster’s Homepage and advertising).

Web Framing

In Web framing, a viewing window is created for all or a portion of a Web page or a particular piece of content residing on a Web page. Problems with framing typically arise where the manner in which the Web site is framed removes, obscures or alters navigation tools, links, indicia of source, trademarks, logos or advertising located on the Web site that is framed. Framing of thirdparty content into another Web page raises many legal issues, including passing off, unfair competition, trademark infringement, trademark dilution, misappropriation and perhaps copyright infringement. The possibility that a viewer of framed material will be deceived about the source of goods or services is greater than with regular hypertext linking because framing: (a) allows the framed site to be displayed in conjunction with the Universal Resource Locator (URL) (e.g., the Web address) of the framing site, rather than the URL of the framed site; (b) prevents a user from bookmarking the framed page; (c) may cause confusion among viewers of the framed material as to which Web site is providing the material; and (d) may result in lost advertising revenue from decreased traffic on the framed Web site. As a result, before framing another’s Web content it is advisable to seek permission of the owner of the framed site.

E-mail Forwarding

As a re-distribution vehicle for copyrighted materials, e-mail can easily extend distribution well past the boundaries of authorized original use. The two primary practices of e-mail forwarding are: (a) forwarding an URL link and (b) copying Web site content and pasting it into an e-mail, to send to another person or persons. The latter instance may likely constitute unauthorized copying. Whether it does will likely depend on numerous factors, including the nature of the material copied, the purpose of the e-mail, the number of recipients, the identity of the recipients and the effect that the e-mail distribution has on the market for the copyrighted content forwarded in the email— all factors associated with the rights and exceptions established under copyright law. On the other hand, the first type of e-mail forwarding—forwarding a link—will likely not run afoul of the copyright or trademark law because no copying or distribution of protected content is being made and the e-mail recipient is being directed toward the Web site on which the copyrighted content resides.

Other Print Uses of Content

Print uses of digital content frequently require an appropriate permission granted by the copyright owner(s) or publisher. Specifically:

Printer-Friendly Format

A typical license agreement may grant the right to print one to five copies for personal use. Production of large quantities, or capturing, reformatting and re-publishing the content utilizing a publishing program will likely require permission from the content owner(s). In some instances, publishers take the additional steps to make a “printer friendly” version that allows for online and offline printing of articles. For example, CMP’s Information Week , IDG’s CIO Magazine and ZDNet’s Sm@rt Reseller include printer-friendly options that remove frames and widen column widths to better fit 8 1/2” x 11” paper. Once again, most license agreements grant the right to print only a few copies for personal use. Printing additional copies, using the copies for commercial purposes or modifying the content in any manner will likely trigger the need to obtain prior permission from the copyright owner or its authorized agent.

Premium Reprint Services (standard and customized)

Professional reprints are high-quality reproductions of the original published work that present either the complete content or some agreed-to excerpt therefrom. Such reprints may or may not include customization (highlighting specific areas important to the customer) and personalization (trademarked logo of the requester). Rights to make professional reprints are typically exclusive to the publisher, even in cases where an independent print provider is retained.

Emerging Issues and Legal Implications Associated with Linking

The Internet, a boundless network of computers, makes it possible to access information that is stored on Web servers located anywhere around the world. The ability to link from one Web site to another is an inherent characteristic of the Web dynamic. Without links, there is no Web. Web site owners encourage people to visit and use the information that is presented. A link is merely an instruction to a browser to go to a different Web site and does not result in the permanent copying of any portion of the linked site. The link merely allows visitors to a site to call up, or access, the other location without having to type in the URL of the linked site or search for it on a search engine using key terms or phrases. Framing a Web site is a type of link whereby the framed site (e.g., the site that is linked to) is displayed within the framing site (e.g., the site where the link is initiated).

What are the limits of fair use in the Web environment? Does a problem arise if one Web site links to another Web site? What harm can be made when a Web site is framed without permission? Although regulations or laws that specifically govern linking and framing practices have not been enacted, intellectual property laws, such as copyright and trademark law, are applicable to activities taking place over the Internet. Thus, it may be advisable to seek written permission of the Web site owner before creating a link in order to mitigate the chance that existing trademark and copyright laws are violated.

The following section presents examples of possible violations of U.S. laws when a Web site is linked to another or framed without formal permission to do so. The examples include possible instances of: 1. Framing 2. Image Linking 3. Copyright Infringement 4. Privacy 5. Misappropriation and Unfair Competition 6. Trademark Dilution 7. Trademark Infringement 8. Reverse Passing Off 9. False Designation of Origin 10. Defamation 11. Fair Use

Framing

Framing information within another Web page potentially raises issues of copyright infringement, defamation and trademark infringement. If using frames is likely to cause confusion, content in a framed Web site should not be linked to through framing. Framing may also result in a claim for trademark dilution under 15 U.S.C. § 1125(c) (See Trademark Dilution below), if framed content is used in a way that effectively decreases the ability or capacity of a famous mark owned by the framed site to identify and distinguish the goods or services associated with the mark. Liability will thus depend upon the particular mark at issue and the manner in which the framed site is framed.

Image Linking

It is typically considered a breach of “netiquette” to link to a copyrighted image through an IMG link without permission. Even more important, unauthorized copying of an image (as opposed to IMG linking) may well be a violation of the reproduction right or the right to make a derivative work under copyright law. Consequently, written permission should be obtained from the copyright owner of the image prior to creating the link.

Copyright Infringement

A link facilitates the creation of a "copy" by a user, because the act of calling up a site by a user (as opposed to merely creating a link to be accessed by a user) causes a temporary copy of the linked site to be made in the temporary memory (or RAM) of the user's computer. Contributory copyright infringement may be established where a defendant—with knowledge—induces, causes or materially contributes to the infringing conduct of another. Therefore, by establishing a link to another site, a Web site owner, at least in theory, could expose itself to liability for contributory copyright infringement if the link were deemed to facilitate third-party acts of copyright infringement. To the extent that the owner of the linking site earns any revenue from its own Web site, it also could theoretically be held vicariously liable even if it had no knowledge that it was linking to infringing material. It must be noted, however, that under the recently enacted Digital Millennium Copyright Act service providers may immunize themselves from potential liability for copyright infringements engaged in by those who use their services by complying with certain threshold requirements set forth in the act and by removing or disabling access to the infringing material once notified by the copyright owner or its authorized agent.

Privacy

Linking and framing may raise issues relating to one’s right of privacy. Online consumers are increasingly concerned about how information about them is being collected and used. Copyright owners, like all other Web-based commercial entities hoping to attract and keep customers, must be mindful of the need to ensure customer confidence by respecting customer privacy. At a minimum, the entities must clearly inform users of: (a) the type of information that is being collected about them; (b) the intended uses of that personally identifying information; (c) the security measures in place to ensure that inappropriate uses are not made of the information; and (d) the mechanisms in place to resolve disputes about the collection and use of the customer’s personally identifying information. In some instances, particularly when distribution of such information to an unaffiliated, third-party is likely or intended, it may be appropriate and necessary to allow customers to opt out of certain uses of their personally identifying information.

Misappropriation and Unfair Competition

Framing Web sites may heighten the chances that the framing site is engaging in misappropriation or unfair competition in regard to the framed Web site, if the activity diminishes or eliminates the content in the branded home page and other material, so that revenue loss, including revenue from advertising, occurs. Misappropriation and unfair competition may be alleged based on the framing site taking the entire commercial value of content residing at the framed site and selling it to others for profit. A misappropriation claim may be difficult to sustain to the extent such a claim could be preempted by the U.S. Copyright Act It is also possible that a misappropriation claim may result if the framed image appears as a "deeplink" (e.g., a link that bypasses the branded home page and other material such as advertising and takes the viewer to portions of a Web site below the home page) rather than a "surface link" (e.g., a link to the home page of a framed site). For example, in the Ticketmaster case, which was ultimately resolved through a settlement agreement between the parties, Ticketmaster (which owned the framed site) claimed that it had the right to direct the flow of traffic to and within its Web site in order to control the delivery and quality of the services to its customers. This argument invokes the principle that all intellectual property owners must impose quality-control standards to preserve the value of their property, whether copyrighted material, patents or trademarks. A strong counter argument against this so-called "misappropriation of Web site traffic" claim could be made. Depending upon the particular facts, it is possible that the framed site may actually benefit from the link if the framed site actually gains increased traffic and use of its site, thus eliminating any possibility of reduced revenues that are a key to sustaining a claim or misappropriation or unfair competition.

False and deceptive advertising is a type of unfair competition and can occur when a framed site contains advertising and other material not associated with the framing site. For example, framing the images of a competitor's products in a manner that suggests that they are the products of the owner of the framing site may be considered to be false advertising.

Trademark Dilution

Linking in a manner that bypasses or obscures the Web site’s trademarks may result in a claim of trademark dilution. Dilution differs from trademark infringement in that there is no need to prove a likelihood of confusion to protect a mark. Instead, all that is required is that use of a "famous" mark by a third-party causes the dilution of the "distinctive quality" of the mark. For example, the Garbage Pail Kids trading cards, which consisted of rude and violent characters lampooning the wholesome Cabbage Patch Kids dolls, was held to have diluted the Cabbage Patch Kids mark.

Trademark Infringement

Trademark infringement occurs when one party uses the mark of another party in a way that creates a likelihood of confusion, mistake or deception with the consuming public. The confusion created can be that the products or services of the framing site are the same as that of the framed site, or that the framing site is somehow affiliated, connected or endorsed by the framed site. As a result, any framing that falsely confuses the viewer in any of these manners could lead to a claim of trademark infringement. For example, if the distinctive color schemes and lettering of Miller Freeman’s Technology & Learning Magazine or The McGraw Hill Companies’ Business Week were used by other periodicals, consumers would be confused when making a magazine purchasing decision.

Reverse Passing Off

To the extent that framing another’s Web site can mislead the viewer as to the creator of the content, reverse passing off becomes an issue. Reverse passing off occurs when the work of someone else is passed off as one's own work (in contrast, passing off occurs when a person passes his or her work off as someone else's work). The typical reverse passing off case involves an entity that sells goods to an unwitting consumer who thinks the goods were created by another entity. Reverse passing off in the framing context, however, often affects not the sale of goods but rather the sale of advertising space on the framed Web site. Since advertising revenue is generated based on the number of "hits" that a Web site receives and framing may decrease the number of "hits" that a framed site receives, framing may adversely affect the income-generating power of the framed site. The counter argument is that framing does not decrease the number of hits and may actually increase traffic to the framed site. Therefore, the framed site may not have suffered any damage from the framing. A determining factor will be the extent to which advertising revenue is lost or gained as a result of the framing activity.

False Designation of Origin

Framing arguably may also cause confusion as to who owns the images viewed (as between the framed site and the framing site), especially among unsophisticated viewers. Such confusion may theoretically constitute false designation of origin (15 U.S.C. 1125(a)), if the frame causes users to mistakenly believe that the framing site has an affiliation or association with the framed site or that the framing site is sponsored or approved by the framed site. If not already the case today, certainly in the future it would be increasingly difficult to argue that Internet surfers do not understand when a site is being framed, as opposed to displaying original content.

Defamation

The term defamation refers to a false statement that is made about an entity or individual that damages it's reputation. A link to another Web site could be defamatory, if, for example, the linking or framing activity leaves the impression that an individual or entity is associated with statements or actions that damage their reputation, either by falsely attributing such statements or by implying that such statements have been made or endorsed by the individual or entity. Defamation claims are difficult to sustain because of the First Amendment rights to free speech and the law on this issue is unclear at this point. Web site owners should be cautious, however.

Fair Use

Fair use is a well-established copyright law doctrine that, when applicable, allows third parties to use copyright materials without the copyright owner's permission and without compensating the copyright owner. There is no bright line rule for determining when a particular use is a "fair use," rather determining whether the doctrine applies involves a fact-intensive analysis of a four-factored test in relation to the particular facts of a given case. Although many people believe that linking should be deemed a fair use as a matter of policy, as a practical matter fair use is a fact-based defense dependent on the outcome of a multi-part test and therefore is not a foregone conclusion in any given case (See Appendix B: Copyright).

Conclusion

Many Internet consumers—corporate, individual or otherwise—perceive that material on the Web is free for use and redistribution at their discretion. Even consumers receiv ing digital content through subscriptions, site licenses and infomediaries frequently hold the view that material once purchased is free to use in any manner they desire. These perceptions contrast markedly to the practices of photocopying, where significant and ongoing educational initiatives have been in place for years and where several well-publicized punitive legal actions have been concluded. These efforts have helped eliminate a generalized perception that it is typically not appropriate for one to make multiple photocopies of copyrighted materials. If online publishers are to be successful in offering their intellectual property online, they must help ensure that similar education efforts are part of their business plans, and they must remain aware of the various technology solutions— including digital rights management systems—that aid in providing accurate information to consumers about rights, permissions and compensation.

The Rights Management Working Group of the SIIA Online Content Committee assists publishing and affiliated industries in taking an active and consistent approach in establishing rights management solutions through SIIA forums and white papers on rights management. Key new initiatives will focus on educating the user community, much along the same lines as the long-standing SPA education program on software piracy. In addition, SIIA will explore initiatives directed toward licensors of copyrighted digital content that may assist in the crafting of appropriate industry “best practices” licensing provisions , keeping in mind the growing range of potential derivative uses that the Internet facilitates. Given proper user education and appropriate evolution of licensing practices and technologies within the copyright ownership community, the vision of “information at your fingertips” can become more than a marketing slogan. It can become a productive reality, which also protects and guarantees the rightfully entitled revenue streams to those entities that own the respective intellectual properties.

The SIIA Online Content Committee proposes establishing liaisons between SIIA and key bodies such as: Special Libraries Association (http://www.sla.org); American Corporate Council Association; American Library Association (http://ala.org/washoff); Association of Research Libraries (http://www.arl.org); American Association of Law Libraries (http://www.aallnet.org); Society for Information Management (http://www.Webcom.com); American Law Institute (http://www.ali.org); and the European Community Initiative in Rights Management. (http://www.imprimatur.alcs.co.uk)

Appendix A

Rights Management Checklist

Ways to Protect Copyrighted Material – Which ones will you use?
___ Copyright law
___ Licensing law
___ Licensing
___ Subscriber agreements
___ Site licenses
___ Education
___ Rights management technology
___ Rights modeling
___ Authentication
___ Secure containers or digital wrappers
___ Clearinghouses

New Electronic Uses of Content – Which ones will you use?

___ Web linking
___ Web framing
___ E-mail forwarding
___ Other print uses of content
___ Printer-friendly format
___ Reprint services

Emerging Issues and Legal Implications Associated with Linking – Which ones do you need to consider?

___ Framing
___ Image linking
___ Copyright infringement
___ Privacy
___ Misappropriation and unfair competition
___ Trademark dilution
___ Trademark infringement
___ Reverse passing off
___ False designation of origin
___ Defamation
___ Fair use

Appendix B

U.S. Copyright Law

Copyright law, as discussed in the body of this primer, is the bundle of statutory provisions and court cases that have established and interpreted the property rights provided to owners of copyrighted materials. In general, copyright protects original works of authorship. These include literary works, such as novels and computer programs; musical works, such as concertos and rock videos; audiovisual works, such as motion pictures; artistic works, such as sculptures and graphic works; and sound recordings. Also included as copyrightable subject matter are compilations, such as databases and collections of short stories, and derivative works, which are works that are substantially based on another work.

There are three basic requirements that a work must meet to be protected as a copyrighted work—originality, creativity and fixation. The requirements of originality and creativity are derived from the statutory qualification that copyright protection extends only to "original works of authorship." To be original, a work merely must be one of independent creation—in other words—not copied from another. There is no requirement that the work be novel (as in patent law), unique or ingenious. To be creative, there must only be a modicum of creativity. The level required is exceedingly low; even a slight amount will suffice.

The final requirement for copyright protection is fixation in a tangible medium of expression. Protection attaches automatically to an eligible work of authorship the moment the work is sufficiently fixed. A work is fixed when it is sufficiently permanent or stable to permit it to be perceived, reproduced or otherwise communicated for a period of more than transitory duration. The form of the fixation and the manner, method or medium used are virtually unlimited, there is no doubt that online display and use of copyrighted works qualifies as fixation.

Certain works and subject matter are expressly excluded from protection under the U.S. Copyright Act, regardless of their originality, creativity and fixation. Titles, names, short phrases and slogans generally do not enjoy copyright protection under the U.S. Copyright Act. Other material not eligible for copyright protection includes the utilitarian elements of industrial designs; familiar symbols or designs; simple geometrical shapes; mere variations of typographic ornamentation, lettering or coloring; common works considered public property, such as standard calendars, height and weight charts and tape measures and rulers; and any work created by the Federal government.

Copyright protection also does not extend to any idea, procedure, process, system, method of operation, concept, principle or discovery. Thus, although an article on how to market an invention is protected by copyright, that protection extends only to the expression of the ideas, facts and procedures in the article, not the ideas, facts and procedures themselves, no matter how creative or original they may be. Anyone may "use" the ideas, facts and procedures in the article to market an invention or to write another article on the same subject. What may not be taken is the expression used by the original author to describe or explain those ideas, facts and procedures. This concept is what is commonly referred to as the idea/expression dichotomy. The idea/expression dichotomy assures authors the right to their original expression, but encourages others to build freely upon the ideas and information conveyed by a work.

Generally, a copyrighted work is protected for the length of the author's life plus another seventy years. In the case of joint works—where the work is created by more than one author—copyright protection is granted for the length of the life of the last surviving joint author plus another seventy years. Works made for hire, as well as anonymous and pseudonymous works, are protected for a term of either 95 years from the year of first publication or 120 years from the year of creation, whichever is shorter. When the term of protection for a copyrighted work expires, the work falls into the "public domain."

The U.S. Copyright Act grants copyright owners certain exclusive rights that, together, comprise the bundle of rights known as copyright. Specifically, the U.S. Copyright Act gives copyright owners the rights of reproduction, adaptation, distribution, public performance and public display. This essentially means that one needs the permission of the copyright owner to copy the work, make an adaptation of the work, distribute the work or to perform or display the work publicly. There are several exceptions to the copyright owner's exclusive rights scattered throughout the U.S. Copyright Act. The most significant and perhaps murkiest of the limitations on a copyright owner's exclusive rights is the doctrine of fair use. Fair use is an affirmative defense to an action for copyright infringement. It is potentially available with respect to all manners of unauthorized use of all types of works in all media. The fair use doctrine permits a party to use a work without the copyright owner's authorization and without compensating the copyright owner for such use.

There is no bright line test for determining when a particular use constitutes a fair use under the law. Whether a particular use constitutes a fair use is determined on a case-by-case basis. In each case a court, in determining whether a particular use made of a work is considered to be a fair use, will look at: 1. the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; 2. the nature of the copyrighted work; 3. the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and 4. the effect of the use upon the potential market for or value of the copyrighted work.

In addition to the fair use exception, there are numerous other exceptions and limitations to the copyright owner's exclusive rights in the U.S. Copyright Act, as well as compulsory licenses.

Anyone who, without the authorization of the copyright owner, exercises any of the exclusive rights of a copyright owner, as granted and limited by the U.S. Copyright Act, is an infringer of copyright. Thus, any activity that falls within the scope of the exclusive rights of the copyright owner is an infringement and the infringer is liable, unless the activity is authorized by the copyright owner or is permitted by an exception under the law. Copyright infringement is determined without regard to the intent or the state of mind of the infringer; "innocent" infringement is infringement nonetheless.

Copyright owners are generally responsible for policing their rights. In cases of infringement, they may seek injunctions to stop infringing activities and may receive monetary awards from courts that have determined infringement to have occurred. Damages are most commonly awarded to compensate for lost sales, although under U.S. law, copyright owners may opt to receive an award of statutory damages. In certain cases of egregious infringement, criminal penalties may also be applied by the courts.

Appendix C

Glossary of Terms

The terms below were compiled, in large part, from: Simpson, C. and S.L. McElmeel, Internet for Schools, Linworth Publishing, 1997. Smedinghoff, T.J., Online Law: The Legal Guide to Doing Business on the Internet, editor, McBride, Baker & Coles law firm, Chicago, IL. Technology @ Your Fingertips, NCES, Oct 1997.

Appendix D

Digital Rights Management Solutions Companies

When evaluating digital rights management solutions, it is advisable to ask the following questions:

1. Does the DRM company support an encryption-based distribution scheme that allows for super distribution through email and authenticates users, as well as allows copies to be made according to a publisher-defined "reprint" scheme?

2. Which encryption scheme(s) are used? The publisher may require that encryption is necessary to ensure revenue; yet at the same time want the solution to be as easy to use as possible. Tools for site license administration. A growing proportion of our revenue comes from site licenses to companies. Currently we administer these through contact people at each site and "enforce" by written contract.

We don't want to administer individual users within site licensees and our customers probably don't want us to either. Therefore, the solution we pick will need to have some tools for letting site-licensees administer their own users. 1. Identify the resources that the DRM company would commit to working on a pilot project, the tasks required of the rights-holder and the timeline. 2. How would using a specified DRM solution affect the publisher's editorial process? Criteria The companies listed herein offer digital rights management solutions to rights-holders that distribute content electronically, either on the Web or by other means. SIIA does not endorse these companies, but provides them as a resource for readers.

Adobe Systems - PDF Merchant / Web Buy Telephone: +1 (408) 536-6000 Web Site: http://www.adobe.com/ Adobe PDF Merchant is a server-based technology designed to be integrated into existing ecommerce and transaction servers. It manages encryption of PDF files and the distribution of keys to access them. To provide consumers with a mechanism for purchasing and viewing electronic content produced using Adobe PDF Merchant, Adobe is implementing a Web Buy feature within the free Acrobat Reader. Together, the new technologies will give publishers, distributors, retailers and consumers the capability to securely exchange electronic content.

Aris Technologies Telephone: +1 (617) 864-9800 Web Site: http://www.musicode.com/ ARIS Technologies, Inc. is a leader in proprietary digital audio watermarking systems and solutions. ARIS' systems identify, authenticate and protect intellectual property and other content in physical carrier, broadcast, online and other transmission environments. Its flagship systems are MusiCode®, MediaCode™ and SoniCode™.

Blue Spike Telephone: +1 (800) 381-8344 Web Site: http://www.bluespike.com Blue Spike produces Giovanni, a digital watermark system. This patented system provides a means for creators of multimedia content to protect their copyrights on computer networks or other digital media such as compact discs, as well as track content that is electronically distributed.

Breaker Technologies - SoftSEAL Telephone: +44 (0) 118 932 1921 Web Site: www.breakertech.com Breaker Technologies Ltd. is a recent start-up selling a toolkit, SoftSEAL™, that provides licensing and authentication services to both producers and consumers of Internet content. SoftSEAL gives publishers a means of managing access to content and protecting their intellectual property from unauthorized duplication, re-distribution and reverse engineering.

Copyright Clearance Center Telephone: +1 (978) 750-8400 Web Site: www.copyright.com Copyright Clearance Center Inc., the largest licenser of photocopy reproduction rights in the world, was formed in 1978 to facilitate compliance with U.S. copyright law. CCC provides licensing systems for the reproduction and distribution of copyrighted materials throughout the world. CCClicensed customers number over 9,000 corporations and subsidiaries (including 90 of the Fortune 100 companies).

cSafe Telephone: (001) +972-2-999-4404 Web Site: http://www.csafe.com cSafe™ is the first solution provider to offer tools for the safe and profitable sharing of digital content on the Internet. With its flagship product PixSafe, cSafe enables content providers to add Look But Don't Touch™ access to proprietary material. Based on the patent-pending SAFE™ architecture, cSafe is developing additional solutions for content providers. Upcoming cSafe products include content licensing tools compatible with e-commerce solutions.

Datum/Digital Delivery Telephone: +1 (800) 782-9682 Web Site: http://www.digitaldelivery.com Digital Delivery is a leading supplier of software tools and vehicles for the secure distribution of software and proprietary information. Digital Delivery's software tools will empower you to distribute your information and software in a secure and effective way. Our tools make it easy to manage, build and deliver an attractive collection of your data—whether your goal is to distribute confidential documents to remote offices securely or showcase multimedia product catalogs to customers around the world.

Digimarc Corporation Telephone: +1 (503) 968-2908 Web Site: http://www.digimarc.com Digimarc Corporation is a leader in digital watermarking technology and smart image applications. The company's patented system is used to identify, track, manage and enhance visual communications. Digimarc-enhanced images contain hidden messages that are imperceptible during normal use but detectable by software or other devices. Digimarc-enhanced images are "smart images" that can:

Fatbrain.com Telephone: +1 (408) 845-0100 Web Site: http://www.fatbrain.com Fatbrain.com is an Internet-based professional bookstore offering a wide selection of books, training materials and print-on-demand documentation for business, finance, math, science and technology experts. Fatbrain's eMatter program is a secure digital publishing model that allows publishers and authors to publish and sell works online. The eMatter initiative combines new digital rights technologies including Adobe PDF Merchant and the Acrobat Reader with Web Buy. Fatbrain.com also secures documents posted in Microsoft Word 97, 98 and 2000 file formats.

iCopyright Telephone: +1 (425) 430-4555. Web Site: http://www.icopyright.com iCopyright provides corporate and institutional users with the ability to instantly reprint or reuse content that is published on the Internet or found in printed publications. Clicking on the iCopyright symbol takes an individual directly to the iCopyright automated clearinghouse site. A three-step process allows the user to obtain proper clearance for articles, photos, music clips and other content from the copyright holder, pay any associated royalties or fees for the material and receive the content in the format desired.

InterTrust Telephone: +1 (800) 393-2272 Web Site: http://www.intertrust.com InterTrust® has developed a general-purpose Digital Rights Management (DRM) platform that serves as foundation for providers of digital information, technology and commerce services to participate in a global system for digital commerce. InterTrust licenses its DRM platform as software and tools to InterTrust partners. Collectively, these partners offer digital commerce services and applications that form a global commerce system branded as the MetaTrust Utility™. InterTrust partners include BMG Entertainment Storage Media, Computacenter, Diamond Multimedia Systems, Mediascience, Mitsubishi Corp., MusicMatch, National Westminster Bank, PublishOne, Reciprocal Inc. and Universal Music Group.

Magex Telephone: +44 171 302-4651 Web Site: http://www.magex.co.uk Magex is a new digital commerce service which provides a safe and easy way to buy and sell digital content on the Internet-like music, software, videos, games and business information. Magex provides copyright protection and a secure payment facility with the backing of an international clearing house and supported by leading DRM technology.

MediaDNA Telephone: +1 (858) 456-4880 Web Site: http://www.mediadna.com MediaDNA specializes in the development and implementation of Digital Content Management solutions. The core technology enables the owners, creators and distributors of digital media, including text, music, video and software, to permanently protect and manage their intellectual property. Characteristics of the technology emphasize document-level persistent security, ease-ofuse, usage analysis and reporting and top-tier search engine ranking. Software architecture supports e-commerce and enterprise applications.

OpenGraphics Corporation Telephone: +1 (416) 663-4999 Web Site: http://www.opengraphics.com OpenGraphics is a new Internet venture dedicated to providing an online environment for creating professional-quality visual media. Using the Design Wizard, users will be able to create or arrange their own content and send it to a local business for printing and pick-up or delivery.

PublishOne Telephone: + (408) 327-0411 Web Site: http://www.publishone.com PublishOne is an online publishing service enabling businesses and professionals to profitably and safely sell their business documents and information over the Internet. The author's rights are always maintained and the information remains protected from unauthorized use. PublishOne also allows businesses to control distribution of their information and track the use of that information.

Reciprocal, Inc. Telephone: +1 (716) 845-7839 Web Site: http://www.reciprocal.com Reciprocal enables content providers to share, sell and digitally distribute intellectual property. They provide a system for controlling access to content, tracking usage and supporting wide distribution allowing the publisher to extend the use of its existing content in new ways via new mediums. Reciprocal's desktop tools allow for independent content control features that enable or disable various combinations of view, print and save.

Right Hemisphere-Em-bargo Telephone: +61 47 51 1127.
Right Hemisphere has developed a software system, called Em-bargo, aimed at protecting copyright of printed documents. It is applicable to word processing software and electronic document delivery. The basic idea, now covered by numerous patents around the world, is that confidential or copyright information can be invisibly marked with a "fingerprint" which links the document to its legitimate owner.

RightsMarket.com Telephone: +1 (403) 571-1835 Web Site: http://www.rightsmarket.com RightsMarket.com encrypts digital content, meters usage, authenticates the user, provides authorization and creates a transaction log for reporting and billing purposes. RightsMarket.com provides persistent digital rights management for software, text, knowledge, data, music, videos and photographs even while running disconnected from the Net.

Softlock.com Telephone: +1 (978) 461-5944 Web Site: http://www.softlock.com SoftLock.com is e-commerce provider in the business of merchandising valuable digital content. SoftLock.com's patented system and service offering, the SoftLock CyberSales Solution™, actively markets and sells brand-name electronic content that delivers major benefits to Content Providers, SoftLock Affiliates and consumers.

Sunhawk.com Telephone: +1 (206) 728-6063 Web Site: http://www.sunhawk.com Sunhawk.com Corporation is an Internet-based digital rights management and digital publishing company. Sunhawk.com provides digital rights management technology, content preparation and enhancement, and a digital distribution infrastructure for the secure delivery of proprietary digital products over the Internet.

Tritheim Technologies, Inc. Telephone: +1 (727) 943-8684 Web Site: http://www.tritheim.com Tritheim provides secure digital systems solutions for software, computers, and the electronic information industry. Tritheim manufactures and markets smart cards and smart card readers, Chip sets, electronic commerce software, PC security software, and software copy protection systems utilizing Tritheim's patented VirtualToken™ Technology.

Vyou.com Telephone: +1 (408) 287-4200 Web Site: http://www.vyou.com Vyou has pioneered and patented technology that allows publishers to display their most valuable content on the Web while maintaining control and ownership of their intellectual property. The technology offers World Wide Web users access to images, text, and streaming audio and video that have never before been seen on the Internet. It does this and more without imposing fees or intrusive controls and passwords and without requesting any personal information.

WordCheck KeyWord Software Telephone: +1 (800) 258-3774 Web Site: http://www.wordchecksystems.com WordCHECK® KeyWORD Software has been designed specifically as a tool to help detect plagiarism, protect intellectual property and provide a means of identifying how information has been misused or stolen. It checks keyword uses and keyword frequencies in electronic documents and presents a "percentage of match" between compared data.

Xerox Corporation Telephone: +1 (650) 813-6869 Web Site: http://www.contentguard.com/ Xerox ContentGuard enables rights management by providing ongoing tracking and protection of digital content. Using ContentGuard, publishers can assign rights to their content and sell permissions to users with the assurance that their content is protected against unauthorized use.

Yankee Book Peddler, Inc. Telephone: +1 (800) 258-3774 Web Site: http://www.ybp.com YBP Library Services provides books and supporting collection management and technical services to academic, research and special libraries in North America and around the world. Their electronic services include GOBI, the first and still the standard bibliographic database on the Web among vendors, and Copyright Direct, a web-based copyright management system.

YBP Publishing Services--Copyright Direct Telephone: +1 (603) 746-3102 or (800) 258-3774 Web Site: http://www.copyrightdirect.com YBP Publishing Services (YBP) has developed Copyright Direct, an electronic copyright management service that automates permissions transactions for print and electronic content via standard WWW browser technology. Copyright Direct allows rights-holders to automate most of their permissions transactions and allows users to get the rights they need through a real-time, webbased storefront.

Other Rights Management Standards Organizations and Researchers

Current research at MIT’s Media Lab is focused on data hiding as a means to protect secure documents from being counterfeited with modern ink-jet printer technology. Two separate technologies, Patchtrack and Tartan Threads, are under development in the Data Hiding group. Patchtrack is method by which an inkjet printer can encode its serial number onto any continuous tone image. Tartan Threads is a method for embedding digital signatures into secure documents (e.g. currency, stock certificates, airline tickets or copyrighted images) so that a printer can identify it on the fly and refuse to print. IBM researchers in Tokyo, working in concert with the MIT Media Lab, NEC and Phillips, have developed a digital watermarking technology called "DataHiding" that enables embedding of some data (such as digital IDs or captions) invisibly.

Open eBook Telephone: Web Site: http://www.openebook.org Open eBook is a collaborative effort of software publishers, hardware vendors and publishers to create standard formats for portable electronic books. eBooks are digital versions of printed books, which display on specialized reading devices or on PCs and laptops. The firms involved declared that they have agreed to collaborate on a common set of file specifications. This will allow a title to be read on all machines adhering to these standards, and it will allow publishers to reach a wide audience without separately reformatting their titles for each machine.

Microsoft initiated the effort and has been joined by Bertelsmann, HarperCollins Publishers Inc., Microsoft Press, Penguin Putnam Inc., Simon & Schuster and Time-Warner Books; barnesandnoble.com; Hitachi Ltd.; Audible Inc., plus eBook pioneers EveryBook Inc., Glassbook Inc., Librius Inc., NuvoMedia Inc. and SoftBook Press Inc. More firms are expected to join this effort in the future. Amazon.com is not participating in the venture.

Acknowledgments

This report grew out of discussions of the Rights Management Working Group of the SIIA Online Content Committee. Rights management has emerged as an increasingly important issue for our industries. SIIA would like to acknowledge the significant contributions of our project co-chairs, Andrea Broadbent, Director, Corporate Licensing, The McGraw-Hill Companies and Jerry Schwartz, VP, Corporate Business Development, iCopyright Inc. Moreover, we thank Andrea for her work in tirelessly crafting and editing the finished product. In addition, the following individuals contributed to various sections of this paper: Tim Lafferty, Reciprocal Inc., Reg Pritchard, Rights Management Associates, William R. Rosenblatt, The McGraw-Hill Companies and Stephen Sutherland, OpenGraphics. SIIA Rights Management Working Group, September 1999 Co-chairs: Andrea Broadbent The McGraw-Hill Companies Jerry Schwartz iCopyright Inc.

Working Group Members: Jim Bowler Computer Curriculum Corp. Jim Byrd Lexis-Nexis Chuck Carlson Riverdeep, Inc. David J. Carter Copyright Clearance Center Edward W. Colleran Copyright Clearance Center Kevin Custer Brainium.com Patrice S. Ettinger Dow Jones & Co., Inc Scott Gessler Hale Software Tracy Gross American Banker/Bond Buyer (Thomson) Jenny House Classroom Connect Al MacIlroy JDL Eric Massant LEXIS-NEXIS (Reed Elsevier) Lance McIntosh Open Market, Inc. Tom Murphy Professional Publishing Services Co. Dennis Payne Demoroom.com Clifton W. Pierce Bell & Howell Information and Learning Reg Pritchard Rights Management Associates Ltd. Becky Snyder ABC-CLIO Stephen B. Sutherland OpenGraphics Charlie Terry COMTEX David Vogt Brainium.com Carol Waugh The Internet Monitor Bob Weaver InterCoast Technologies SIIA Program Development Staff: Leah Ford, Fred Hoch, Sue Kamp, Michael Kerr and Marnel Williams SIIA Government Affairs Staff: Dan Duncan and Keith Kupferschmid