Post on 26-Mar-2015
Copyright,2000-2005 1
IP Business Models for the TAFE Sector
Roger Clarke Chair, AEShareNet Limited
Xamax Consultancy, Canberra& Visiting Professor at the A.N.U., the Uni. of Hong Kong
and the Cyberspace Law & Policy Centre, U.N.S.W.
http://www.anu.edu.au/people/Roger.Clarke/ ...... /EC/IPBusTAFE-0509 {.html, .ppt}
TAFE Development Centre, Melbourne20 September 2005
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Copyright,2000-2005 2
IP Business Models for the TAFE SectorAgenda
1. Contemporary Realities2. What’s a Business Model3. Intellectual Property Business Models
• Outdated Proprietary BMs• Proprietary BMs for the Modern Era• Open, Sharing BMs
4. Choosing Between Proprietary and Open5. Implementing an IP Business Model
Copyright,2000-2005 3
1. Contemporary Realities
• The Digital Era• Atoms ==>> Bits
• Internet / Cyberspace• Bits go anywhere
• Peer-to-Peer (P2P)• Bits go everywhere
• Interactive Publishing• Bits get used
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Peer-to-Peer (P2P)
• “P2P is class of applications that take advantage of resources (storage, processing capacity, content, human presence) available at the edge of the Internet”
• Each participating program is both Client and Serverand hence each workstation is a host as well, e.g.
• your music playstation can be a mixer too• your PDA can host part of a music catalogue• your PC can host part of a music repository
Copyright,2000-2005 5
P2P ArchitectureCooperative Use of Resources at the
Edge
Server & Client
inWorkstation
Server & Client
inWorkstation
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Conventional Publishing, 1450-1995
The PublishingIndustry Value-Chain
Parts of the PublishingIndustry Value-Chain
Desk-Top Publishing, 1985-20..
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Electronic Publishing, 1990-20..
Cross-Media Publishing, 1998-20..
FormatConversion
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Interactive 'ePublishing', 1995-2095
TheHoney
Pot
'Bees Around a Honey-Pot'
Copyright,2000-2005 9
2. What’s an eBusiness
Model?
It’s an Answer to the Question:
Who Pays?
For What?
To Whom?
And Why?
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3A. The Outdated Proprietary IP Business Model
• Exploit the Monopoly through High Prices
• Leverage the Monopoly
• Extend the Brand• Cross-Promote
• Sustain the Monopoly• Very Constrained
Licensing• Technological
Protections
• Lawsuits to stop, and to chill, behaviour:
• Commercial Violations
• Single-Purpose Technologies
• Incitement (‘Authorisation’)
• Multiply-Usable Technologies
• Consumption
Copyright,2000-2005 11
Avenues of Music Industry Fightback
• Political• Copyright Expansionism• Criminalisation / Cost Transfer
• Legal• Lawsuits• Publicity
• Technological• Digital Rights Management• Reduction of the Power at the Edges
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3B. A Sustainable Proprietary Approachfor the Music Industry
• Identify price resistance-points in the various customer-segments i.e. ‘what the market will bear’
• Set prices accordingly (and hence sustain payment morality)
• Make backlists and new releases available via for-fee P2P channels
• Discourage and prosecute breaches where the purpose is commercial
• Take no action over breaches by consumers (esp. time-shifting, format-change, even sharing?)
The Evidence• Since 2003,
Apple iTunes charges USD 0.99/track!?
• Copyright-Owners get USD 0.70
• In 2005, they’re asking for more
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3C. Open, Sharing IP Business Models
WHO PAYS? For What? To Whom? And Why?
• Customers, for the Good/ServiceDistribution
• Customers, for Complementary Goods/ServicesConsultancy, Training, Installation, Customisation, Integration, Audit
• Providers
• Third Parties
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Who Pays? Sometimes, a Fairy Godmother
• SubsidyFunding from ‘external’ sourcesDeprecated as a gift, unless ‘market failure’
• Cross-SubsidyFunding from ‘internal’ sourcesDeprecated, claimed to be ‘distortive’
• Portfolio ApproachMutual Cross-Funding from ‘internal’ sourcesHow business works – ‘cash cows’ fund the rest
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Who Pays? FOR WHAT? To Whom? And Why?
• Goods & Services• Value-Added
Goods & Services• Complementary
Goods & Services• Infrastructure• After-Sales Service
• Data• Information• Expertise / Knowledge
• An Idea in Good Standing• Timeliness• Quality
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Who Pays? For What? TO WHOM? And Why?
Direct Intermediated• Retailer• Franchisee• Value-Adder• Bundler• Transaction
Aggregator
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Who Pays? For What? To Whom? AND WHY?
• Resource Control• Switching Costs
(capture, lock-in)• Perceived Value• Cost Advantage• Quality Advantage
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Key Lessons about Open Content
• Reciprocity is of several kinds:• direct and immediate• indirect and/or deferred
Barter / Exchanges may be open communities, or closed communities
• Reputation is central
• Resources from Complementary Servicesand from ‘Fairy Godmothers’
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4. Criteria for Selecting Between‘Modern Proprietary’ and ‘Open,
Sharing’
‘Modern Proprietary’ is a tenable model, provided that a number of conditions hold:
• a pure for-profit corporation, with shareholders, who are expecting ROI
• customers expect to pay full price• the organisation has unique competency,
market leadership and/or high reputation• the materials require significant
investment
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5. Pre-Conditions for Any IP Business
• Inbound Materials Clearance• Check Material Sources• Acquire Licences for ©
Materials• Productisation
• Defined • Discrete• Deliverable • Dependable
• Appropriate Copyright Licence
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Open Content Licensing Choices• Ownership
• Exclusivity• Sub-Licensing
• Integrity Protection• Entirety• Copyright Notice
• Reproduction Control• Permission• Use(s) / User(s)
• Republishing Control• Permission• Use(s) / User(s)• Format(s)/Media• Incorporation• Tech. Protections
• Adaptation Control• Permission• Review• Distinguishability• Copyright Vesting
• Usage• Territory • Purposes• Person-Types• Fields of Endeavour
• Liability Management• Warranties• Indemnities
• Pricing• One-Time Fees• Repetitive Fees
Copyright,2000-2005 22
Categories of Creative Commons Licence
http://creativecommons.org/licenses/, .../license/
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Copyright,2000-2005 23
Categories of AEShareNet Licence
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QuickTime™ and aTIFF (LZW) decompressorare needed to see this picture.
QuickTime™ and aTIFF (LZW) decompressorare needed to see this picture.
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INSTANT LICENCES
End-user – E
MEDIATED LICENCES
Commercial – C
Free for Education – FFE
Unlocked Content – U
Share and Return – S
Preserve Integrity – P
Copyright,2000-2005 24
IP Business Models for the TAFE Sector
Roger Clarke Chair, AEShareNet Limited
Xamax Consultancy, Canberra& Visiting Professor at the A.N.U., the Uni. of Hong Kong
and the Cyberspace Law & Policy Centre, U.N.S.W.
http://www.anu.edu.au/people/Roger.Clarke/ ...... /EC/IPBusTAFE-0509 {.html, .ppt}
TAFE Development Centre, Melbourne20 September 2005
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.
Copyright,2000-2005 25
IP Business Models for the TAFE Sector
http://www.anu.edu.au/people/Roger.Clarke/ ...... /EC/IPBusTAFE-0509 {.html, .ppt}
1. Contemporary Realities2. What’s a Business Model3. Intellectual Property Business Models
• Outdated Proprietary BMs• Proprietary BMs for the Modern Era• Open, Sharing BMs
4. Choosing Between Proprietary and Open5. Implementing an IP Business Model