Friendly File Sharing System The “Potato” System We bring customers and providers of content...

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/[email protected]@[email protected]@TU-Ilmenau.de

6/22/2002 Jürgen Nützel, [email protected] - 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


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).


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


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


Classical DistributionClassical DistributionClassical DistributionClassical Distribution

specify / sell / control

Provider Trans-fer

FilesCDs

Authors / CreatorsAuthors / Creators


User / Consumer rights





Problems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual GoodsProblems with Virtual Goods

Provider Authors / CreatorsAuthors / Creators


Files

Napster







Provider Authors / CreatorsAuthors / Creators


Napster

FilesGnutella

controls







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).


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


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.


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


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


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


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


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


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


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/[email protected]@[email protected]@TU-Ilmenau.de

Friendly File Sharing System The “Potato” System We bring customers and providers of content...

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