Post on 19-Dec-2015
Friendly File Sharing SystemFriendly File Sharing SystemThe “Potato” SystemThe “Potato” System
Friendly File Sharing SystemFriendly File Sharing SystemThe “Potato” SystemThe “Potato” System
We bring customers and providers of content back We bring customers and providers of content back together to a common economic interesttogether to a common economic interest
II22C, Kuehlungsborn 6/22/2002C, Kuehlungsborn 6/22/2002Ruediger.Grimm@TU-Ilmenau.deRuediger.Grimm@TU-Ilmenau.deJuergen.Nuetzel@TU-Ilmenau.deJuergen.Nuetzel@TU-Ilmenau.de
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 2
At a Glance …At a Glance …At a Glance …At a Glance …
Goods - Virtual GoodsGoods - Virtual Goods Life Cycle of Virtual GoodsLife Cycle of Virtual Goods Classical DistributionClassical Distribution Problems with Virtual GoodsProblems with Virtual Goods Friendly File Sharing SystemFriendly File Sharing System The Research TeamThe Research Team The Potato BoxThe Potato Box Conclusion and Next StepsConclusion and Next Steps
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 3
Virtual GoodsVirtual GoodsVirtual GoodsVirtual Goods
What is a Virtual Good? A Definition:
„A product or service is "virtual" if it is freed from its original medium and bound to a new medium and if it fulfills these two conditions:
(a) human users accept the virtual image of the product (or service) asa real product (or service, resp.);
(b) consumption of the product (or service, resp.) is independent of theproducer, it is solely in the hand of the consumer and can be repeatedby the consumer whenever he decides so (note, however, that repeated use of a product or service may induce costs and has impact on the reality).
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 4
Virtual GoodsVirtual GoodsVirtual GoodsVirtual Goods
e.g. Music
Freeing from media (sound waves, record, compact disc) is possible
Binding to media (sound waves)
Consumption can be repeated by the consumer whenever he wants
Digital production/reproduction with optimized quality possible
Digital transmission and storage without loss
Highly effective coding allows fast transmission
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 5
Life Cycle of Virtual GoodsLife Cycle of Virtual GoodsLife Cycle of Virtual GoodsLife Cycle of Virtual Goods
011101000100101001111010010000100110
coding(reduction)
transmission/storage(without loss)
011101000100101001111010010000100110
interpretation(enrichment)
The practical value of virtual goods is primarily defined by the personal
enrichment of the consumer
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 6
Classical DistributionClassical DistributionClassical DistributionClassical Distribution
specify / sell / control
Provider Trans-fer
FilesCDs
Authors / CreatorsAuthors / Creators
Authors / CreatorsAuthors / Creators
User / Consumer rights
User / Consumer rights
User / Consumer rights
User / Consumer rights
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 7
Problems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual Goods
Provider Authors / CreatorsAuthors / Creators
Authors / CreatorsAuthors / Creators
Files
Napster
User / Consumer rights
User / Consumer rights
User / Consumer rights
User / Consumer rights
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 8
Problems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual Goods
Provider Authors / CreatorsAuthors / Creators
Authors / CreatorsAuthors / Creators
Napster
FilesGnutella
controls
User / Consumer rights
User / Consumer rights
User / Consumer rights
User / Consumer rights
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 9
Problems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual Goods
Conflicting Interests
User have the interest and possiblity to copy and re-distribute virtual goods (e.g. music) with almost no costs.
Providers have indeed the interest to distribute (superdistribution), but only under their full control.
Providers hinder the users to re-distribute (Digital Rights Management). Users will be criminalised. Prosecution and spying on the users. Intervention in the user‘s sphere (computer).
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 10
An Expert OpinionAn Expert OpinionAn Expert OpinionAn Expert Opinion
Forrester Research in
„Content out of control“
“…DRM can't prevent filesharing, nor will business models that depend on the control of content ever reap sustainable revenues … Consumers don't want business rules or restrictive technology -- and it only takes one person to break down the security barriers and share content on the Net. Lawsuits will only succeed in driving consumers to underground Internet services like Gnutella and Freenet…"
http://www.forrester.com/ER/Press/Release/0,1769,397,FF.html
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 11
An Alternative ApproachAn Alternative ApproachAn Alternative ApproachAn Alternative Approach
Cooperation of Interests!
Providers and users of digital music, ebooks or other virtual goods no longer treat one another as enemies!
No copy protection or other restriction will be imposed on the users! Users are able to – they are encouraged to – re-distribute the files.
A user may decide to pay for a virtual good. If he does so, he becomes an active part of the distribution network for virtual goods. He gets additional benefits.
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 12
Friendly File Sharing SystemFriendly File Sharing SystemThe “Potato” SystemThe “Potato” SystemFriendly File Sharing SystemFriendly File Sharing SystemThe “Potato” SystemThe “Potato” System
Bill runs the Accounting Serverof the “Potato Systems“
Fred made mysong.mp3
mysong.mp3
Fred registers mysong.mp3
Bill responds withtransaction number0001File will be renamed
mysong4fo0001.mp3
Ginny receives mysong4fo0001.mp3directly from Fred
mysong4fo0001.mp3
Ginny presents 0001and pays for it
mysong4fo0002.mp3
Bill responds with the new transaction number: 0002File will be renamed.
Harry receivesmysong4fo0002.mp3 from Ginny
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 13
Friendly File Sharing SystemFriendly File Sharing SystemThe Accounting ServerThe Accounting ServerFriendly File Sharing SystemFriendly File Sharing SystemThe Accounting ServerThe Accounting Server
Bill runs the Accounting Serverof the “Potato Systems“
• manges user accounts on behalf of providers (Fred) and consumers (Ginny)
• stores information about the files (mysong.mp3) of the providers
• handles registration and purchase of files
• generates unique transaction numbers
• pays out commission to the user (Ginny) (if Harry buys)
• provides evidence of purchases by presenting transaction number
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 14
Friendly File SharingFriendly File SharingFriendly File SharingFriendly File Sharing
„Pretty Good Distribution”
Re-distributing users may earn more than they payed for
User not paying may consume and re-distribute anyhow
Unpaid re-distribution finances previous payer
Users are able to demostrate their purchase: „I purchased it“
Rapid distribution of content of unkown artists
No compatibility problems
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 15
The Research TeamThe Research TeamThe Research TeamThe Research Team
„Security for Virtual Goods”
May 24, 2002: Under chairmanship of Prof. Brandenburg the Fraunhofer institution AEMT in Ilmenau creates a new research team distributed over three Fraunhofer Institutes in Ilmenau, Darmstadt and Erlangen. Ilmenau will bridge the different competences: multimedia technology in Erlangen, and IT security in Darmstadt. Moreover, in Ilmenau we will develop alternative DRM business models. A first idea of a friendly distribution model is already filed for patent, together with Fraunhofer and 4FriendsOnly.com AG (4fo).
http://www.4FriendsOnly.org
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 16
More Ideas:More Ideas:e.g. “potato box“e.g. “potato box“More Ideas:More Ideas:e.g. “potato box“e.g. “potato box“
Distribution and Purchase via CD-R
The potato system was primerily developed for PC users with Internet access. But distribution and purchase via CD-ROM is already included.
Ginny receives mysong4fo0001.mp3 on a CD-R. Using the new TN (0002) the file will be renamed on CD-R (new directory).
With CD writer
Jukebox functionality (Point-of-sale)
Control via PDARealisation using the “potato box“MP3 player with hard disc
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 17
Conclusion and Next StepsConclusion and Next StepsConclusion and Next StepsConclusion and Next Steps
Classical view: conflicting interestsClassical view: conflicting interests New view: cooperating interestsNew view: cooperating interests User build an alternative distribution systemUser build an alternative distribution system Invention 01/16/2002 in the potato pub in IlmenauInvention 01/16/2002 in the potato pub in Ilmenau Agreement with Fraunhofer at CeBIT´02Agreement with Fraunhofer at CeBIT´02 Patent filed on April 17, 2002Patent filed on April 17, 2002 Research team “Security for Virtual Goods“Research team “Security for Virtual Goods“ Realisation of the Accounting Servers by 4foRealisation of the Accounting Servers by 4fo Financing by Fraunhofer starting from June 2002Financing by Fraunhofer starting from June 2002 First milestone in January 2003First milestone in January 2003
6/22/2002 Jürgen Nützel, juergen.nuetzel@TU-Ilmenau.de - www.4FriendsOnly.org 18
Thank youThank youThank youThank you
For more information:For more information:http://www.4FriendsOnly.orghttp://www.4FriendsOnly.org
II22C, Kuehlungsborn 6/22/2002C, Kuehlungsborn 6/22/2002Ruediger.Grimm@TU-Ilmenau.deRuediger.Grimm@TU-Ilmenau.deJuergen.Nuetzel@TU-Ilmenau.deJuergen.Nuetzel@TU-Ilmenau.de