TeleRead: Bring the E-Books Home

The e-copyright debate and a Microsoft alum’s new watermark service

By David Rothman

Steve Stone, Microsoft’s former e-book director, and Chris Pasco-Pranger, self-described as a “willfully unemployed librarian,” have probably never met each other.

But based on their recent words and acts, I’d love to see them square off. The Stone vision is of digital watermarks to safeguard copyrighted property—while Pasco-Pranger and like-minded folks worry about the risks from proprietary copy-protection and related technology.

The Stone vision

Steve (photo), whom I know from his futile but laudable efforts for genuine consumer-level standards for e-books some years ago, has just started an anti-piracy service called Infoflows to track the use of photos and video online. The service is newsworthy because of his past Microsoft ties, the prominence of his technology partners, and yes, the possibility that it could prove to be most effective.

In effect Steve is selling digital watermarks. That means if you post a covered photo or other item to your Web site, the content owner may find out via an automated Web search and send you a warning letter if he or she doesn’t want the material spread around. Steve’s system apparently does not involve personally used e-books right now, but I’d be surprised if he did not get there soon. He has announced his intentions to “expand into other market segments including music and software.” See his press release—which I’m reproducing almost in full at the end of this post, while letting him know I’m doing so in case he wants me to take it down.

Many issues—from privacy to fair use

Many issues could arise from Steve’s technologies, ranging from fair use to privacy (see anti- and at least somewhat pro-watermark comments in the privacy area).

“For the first time in history,” his news release says, “a content owner can identify where its content exists anywhere on the web at any time. In one stop the content owner is empowered to protect it and recover revenue if the intellectual property is being illegally used.”

I’ll be curious to see how this shakes out, and meanwhile if Steve wants to address such issues in the comment box, that’ll be great. Go to it, Steve. Will you eventually monitor individuals’ use of e-books, and if so, is there a chance this will end up in the hands of obnoxious bureaucrats or marketers? Will there be contractual terms to protect consumers’ privacy against this misuse of technology?

Fair use questions

And what to do about fair use and other copyright-related interpretations?

Vonsider your news release, Steve. My reproducing it in the context of fair-minded news commentary will elevate your company’s visibility and maybe even help you financially, just the opposite of damaging you—and yet some gung-ho copyright defenders might argue, “This release isn’t specifically authorized, so take it down.”

As always, I’m not anti-copyright—in fact, just the opposite. The best way to ensure copyright’s survival is a balanced rather than Draconian approach. What’s more, yes, my mind is open. It could be that the watermark approach will be much easier on consumers than present production systems.

Librarian Chris Pasco-Pranger’s starkly different priorities

Chris Pasco-Pranger, the librarian, rightly worries about the horrors that library users suffer in the DRM-related clash of formats—the most notable example being the jihads that Apple and Microsoft are waging against each other. Proprietary DRM, as I see it, is often less effective as protection than a way to herd libraries and users into different formats and make money off it. Even people at the core of the recording industry are wising up to some DRM vendors’ tricks. If there must be DRM, let it be interoperable, nonproprietary, whatever.

Pasco-Pranger is not commenting directly on the Stone approach, quite different in function from the technology that has drawn his ire, but I can imagine how he’d feel. Here’s his take on the OverDrive DRM system, which doesn’t work directly with iPods:

Any patron of a member library can download titles (eBooks, audio, etc.) available from Overdrive to a home PC for a specified loan period. Typically, one approaches the service through a Public Library’s website, for example at Brooklyn Public Library –> eBooks, eVideo & eAudio in the left navbar –> Search the Digital Media Catalog. You can add titles to a cart and then checkout using your library card number. A DRM scheme is applied, so you can only play a given title during the lending period….

The biggest problem (by far) with Overdrive (’Our strategic technology partners include Microsoft Corporation, Adobe Systems, Inc., and Mobipocket.’) is its lack of support for Macs/iPods. Read the FAQ and weep. Of course, Overdrive would say that it’s Apple that doesn’t support THEM, because, y’know, Overdrive is SO much bigger of a deal than the iPod. Oh, the DRM headaches…

You just have to have a current, valid library card. (and, presumably, something broader than a 56 Kbps internets pipe through which to shove yr copy of Tupac: Thug Angel… and Windows Media Player… and some bullshit software from Overdrive… and AcroReader… and a PC… and a “supported device” in yr pocket).”

Eliot Van Buskirk and Sean Michaels, quoting Pasco-Pranger in a Wired News blog, say that it’s “It’s alarming…that publicly-funded institutions are embracing proprietary DRM and participating enthusiastically in the business world, but maybe it shouldn’t be (at least Halliburton didn’t get the contract). In the end, it’s just another entry for the DRM nightmare file.” Pasco-Pranger would almost surely agree with those sentiments.

In fairness to OverDrive…

In fairness to OverDrive’s technology, yes, you can burn a CD and use that to transfer content to an iPod even if it’s a hassle. Another upside of the OverDrive system is that it can allow you to keep audios forever on burned CDs, at least if content providers allow.

The whole model of public libraries is to lend to one user at a time, and that means either a direct or indirect restriction on distribution. If libraries deviate from the model and don’t pay more, then it would seem they must use content such as public-domain books without legal encumbrances. Or else they will have to use DRM or content-tracking schemes to keep up with borrowers-from-borrowers.

My vision

Needless to say, a TeleRead approach, a well-funded national digital library system with fair compensation for content providers, would be one way to help address the above issues and at least reduce the incentive for piracy.

More immediately, here’s what Steve and others might consider:

1. He actually might want to reach out to Creative Commons and similar groups and include them in his plans if they’re interested. If nothing else, he might encourage clients detecting illegally used photos, etc., to recommend that that offending sites switch to Creative Commons material if the offenders qualify and don’t want to pay copyright holders.

While watermarks are not my idea of nirvana—what if the wrong people end up being identified as villains?—they are better than the hyper-intrusive DRM schemes that seem to dominate so much of the e-book world today. And if watermarks can be used for Creative Commons’ own purposes, that might be of interest. In fact, Larry Lessig, the soul of CC, seems open to certain varieties of watermarks.

2. Libraries and content providers need to experiment with nonDRM models to see how they might work. When you check out a paperback, it doesn’t have DRM, does it? Might there be other ways to control and track usage? If nothing else, then, I myself am open to discussion of the watermark model for libraries to use on books checked out. Within the e-book world, eReader uses something a little comparable to watermarks—encrypted credit card numbers. Many and perhaps most experts would not even consider this to be DRM in the usual sense.

Regardless of my qualms about watermarks, I wish Steve the best of luck in his new venture and hope that it will help address such issues as orphaned—or nonorphaned—works. His technology may turn out to be of genuine and well-deserved interest to libraries. Meanwhile his press release, with contact information edited out, follows.

- Fedmark Provides First Full Digital Asset Protection System to
Photographers and Other Digital Content Owners -

REDMOND, Wash., Jan. 17 /PRNewswire/ — Infoflows Corporation today announced the launch of its Fedmark Platform. Built on cutting edge technology, “Fedmark” is focused on an innovative approach to tracking, legal control and recovery of online assets by content owners. Fedmark will be initially available to the stock image and video market in early 2007
and then will expand into other market segments including music and software.
“For the first time in history, a content owner can identify where its content exists anywhere on the web at any time. In one stop the content owner is empowered to protect it and recover revenue if the intellectual property is being illegally used,” stated Steve Stone, Founder and CEO of Infoflows Corporation. “With the increasing trend toward piracy and improper use of proprietary content on the internet, Fedmark will present a huge value proposition for existing owners of stock photography, video and other digital media. Fedmark will offer content owners the most comprehensive self-protection option on the market today.” It is currently estimated that in the stock image industry alone, 25% - 50% of all images are improperly used.
Stone continued, “In an alpha pilot conducted in 2006, one Fedmark crawl returned over 500 instances of unlicensed photographs being pirated by one end user. Needless to say our beta client was thrilled with this outcome and was able to act upon our results to recoup significant revenue.”
Utilizing the patented Handle System created by the Corporation for National Research Initiatives and its founder, Robert Kahn (widely credited for his work in bringing us the Internet), the Fedmark Platform is a system for managing licensed material in digital form. It uses CNRI’s Handle System technology for uniquely and persistently identifying, managing, and
tracking digital objects. Kahn stated, “The opportunity to bring this well tested and powerful technology to consumers by adapting it to the Fedmark Platform should provide significant value to anyone choosing to use it.” Dr. Kahn serves as a technical advisor to Infoflows.
Supported by an easily managed user interface, the most powerful internet crawl technology available, and a dynamic visual search capability, Infoflows believes that Fedmark will become the standard for intellectual property protection for all forms of digital objects — be they stock images, video clips, audio files, or software applications. Support for the comprehensive technology offering includes a detailed reporting tool and compliance services.
In addition to protecting content owners, the Fedmark Platform also provides the ability for anyone who would like to use an image or other digital content and find its owner to easily do so. The launch of the Fedmark platform is the first pillar of a comprehensive strategy by
Infoflows to solve the pending problem for content owners created by Orphan Works legislation.
Infoflows ( http://www.Infoflows.com ) is a software and services company focused on digital object recognition, licensing and copyright through advanced internet crawling and search technology. Infoflows technology can monitor and validate licenses for audio, video or any other information object used on the internet. Our technology also allows customers to self monitor their licensed intellectual property.
Led by recognized technology entrepreneurs, Infoflows is a privately held company headquartered in Redmond, Washington.