Archive for January, 2006

World Economic Forum: “Letting Go of Intellectual Property Rights”

Monday, January 30th, 2006

The rise of digital technologies and the Internet has made the current copyright regime antiquated, at best, and irrelevant at worst. For various reasons, the patent and copyright laws seem increasingly unworkable given business and social realities of today. What would (or will?) the world be like without copyright and patent rights?

That was the question posed to CEOs at a workshop of the World Economic Forum in Davos last week. According to the Financial Times article covering the session, some among the breakout groups that tackled the question saw real advantages to industry and consumers in increased efficiency and increased “personalization of products” (not quite sure what that means). Regarding media in the digital age,

Companies could also aim to make money from context rather than content. A film company, for example, could generate income by providing a stimulating cinema experience rather than selling the film itself. But the film industry might also have to face some unpleasant truths.

“Since the time of the pharaohs the pyramids have not been built. We should expect the death of Titanic the movie. The idea of spending a quarter of a billion dollars on a film about a sinking ship” is no longer going to work, said Jonathan Zittrain, professor of internet governance at Harvard and Oxford universities.

One has to wonder how many of these CEOs found it an interesting exercise for an hour, but consider it little more than that. Will they be so open to some of the ideas floated during the session when the realization hits, perhaps sooner than later, that copyright and patent laws in their present forms really are out of step with technological and social realities?

Seattle firm looking to get in on Chinese mobile music market

Monday, January 23rd, 2006

Seeking to tap into China’s market of some 350 million mobile phone subscribers, Seattle’s Melodeo has formed a joint venture with Access China, a subsidiary of Access, a Japanese internet technology provider. The joint venture “will launch the first platform in China to deliver secure digital content through wireless operators and other mobile-service providers.” According to its website, Melodeo provides “an all-in-one mobile music system … to Mobile Operators. This system lets users shop for music on their mobile phone, download it to the mobile phone and listen to it anywhere or any time in high quality stereo.”

The enormous number of Chinese mobile phone users is no doubt enticing to companies like Melodeo. A fair number of pundits think mobile phone downloads is the killer app that will turn things around for the piracy-riddled music industry in China. Of course, in China the potential users of a wireless, for-pay music download service are probably a relatively small subset of the 350 million mobile phone users. Couple that with the fact that the price Chinese consumers are willing to pay for per-song downloads is something far lower than the 99-cent US price-point, and it might be a challenging business model to sustain. Of course, the biggest challenge to the music-over-mobile business model is unauthorized P2P file sharing, which is rampant in China, and threatens the future of any for-profit online (or mobile phone-based) music retail business model.