Secure Digital Music Initiative Creating a Digital Music Marketplace
What SDMI is: • A multi-industry forum to develop a voluntary open framework for playing, storing and distributing digital music to enable a new market to emerge. • A forum for dialogue
Who has been involved? • Broad multi-industry participation • Over 120 companies and organizations - blue-chips, start-ups, record companies, Internet companies, software companies, consumer electronics companies …..
SDMI Participants • 4C Entity • Adaptec • AEI Music/PlayMedia • America Online • Aris Technologies • AT&T • Audible, Inc. • Audio Explosion • Audio Matrix • Audio Soft • Audiohighway.com • Aureal Semiconductor
SDMI Participants • BMG Entertainment • Bose • Breaker Technology • Canadian Audiotrack • Casio • CD World • CDDB • CDuctive.com • Channelware • Cinram International • Compaq • Comverse Info Systems
SDMI Participants • Creative Technologies • Dentsu • Deutsche Telekom • Diamond Multimedia • Digimarc • Digital On-Demand • Digital River • Digital Theater Systems • DIVX • Dolby Laboratories • EMI Recorded Music • Encoding.com
SDMI Participants • Enso Audio Imaging • Fraunhofer IIS • General Instrument • GoodNoise • Hewlett Packard • Hitachi • HMV Group • I2GO.COM • IGUIDE • Infineon • InterTrust Technologies • Intervu
SDMI Participants • IOMEGA • J. River • J VWeb • Kent Ridge Digital Labs • Lexar Media • LG Electronics • Liquid Audio • Lucent Technologies • M. Ken • Macro Vision • MAGEX at NatWest • Matsushita
SDMI Participants • MCOS • Memory • Media Fair • Mediamatics • MCY Music World • Micronas Semiconductors • Microsoft • Multimedia Archives & Retrieval Systems • MusicMarc • Nippon Telegraphic & Telephone • Nokia UK • NTT Mobile Communications Network
SDMI Participants • Packard Bell NEC • Philips • Pioneer • Plug ‘n Pay Technologies • Portal Player • Pricewaterhouse Coopers • QDesign • QPICT • RealNetworks • Rights Exchange • RPK Security • Saehan Information Systems
SDMI Participants • Sanyo North America • Seca on behalf of Canal Plus • Sharp • Softlock Services • Solana Technology Development • Sonic Solutions • Samsung Electronics • SanDisk Corporation • Sonopress (BMG Storage Media) • Sony • Sony Music Entertainment • SpectraNet Communications - ThrottleBox
SDMI Participants • Sphere Multimedia Technologies • ST&Hilo, a subsidiary of Telefonica • STMicroelectronics • Sun Microsystems • Supertracks • TDK Electronics • Telian • Texas Instruments • The Mitsubishi • The Music Connection • Thomson Consumer Electronics • Tokyo Electron Device
SDMI Participants • Toshiba Corporation • Touch Tunes Digital Jukebox • Universal Music Group • Victor Co. of Japan • Warner Music Group • Wave Systems • Waveless Radio Consortium • WavePhore • Xerox • Yamaha
The Path to SDMI • 1970’s: Tape recorders • 1980’s: DAT • 1990’s: • CD-R; CD-RW • Recordable DVD • Storage capacity • Small, portable, removable hard drives • Flash memory devices • MP3 files
Confrontation to Collaboration • Legal rights difficult to enforce • Need for technological solution • Need for collaboration to allow a legitimate market to emerge
Benefits of Collaboration • New business models for music usage can develop • New products and services can be created to support these new uses • Consumers gain • easier access • to more music • in new, more enjoyable ways
Pirate markets benefit no one • Piracy-based markets are short-term only; consumer frustration hurts everyone • If content loses value, technology driver is lost • Lost opportunity for e-commerce
Legitimate markets benefit everyone • Easy access to music • Easy to acquire • Quality sound • New ways to use music • Interoperable devices
Legitimate markets benefit everyone • Companies that make products • Artists who make music • Consumers who want both
Goals of SDMI • To secure music in all forms, across all delivery channels • Brand music with indelible markings, at the source • Identifiers and usage rights data travel with music • All devices read and act on data in predictable ways.
SDMI is commercially motivated • Not intended to reinvent • Intended to build on what has already been achieved and what is already available in the market
Short term need: Portable Devices • Customer demand • Technology partners eager to join that market • Internet could otherwise turn into a permanent haven for pirated music • Therefore, portable device issue had to be addressed on a very fast track
SDMI on concurrent tracks • Short term needs requiring prompt resolution: Portable devices on a fast track • Long term objective: Meta-level architecture
SDMI’s Launch • February 26, 1999 • Executive Director - Leonardo Chiariglione • Chair of MPEG • Portable Device Working Group • Immediately tasked with focusing on Portable Devices • Jack Lacy, Chair • Met June 30, 1998 deadline for initial Portable Device Specification
Portable Device Specification Version 1.0 • Adopted June 28, 1999 • Released July 13, 1999, after technical review • Publicly available, along with overview and FAQ, at www.sdmi.org
No intent to select a compression technology (MP3, AAC, MSAudio, etc). No intent to select an encryption technology. Reasons: Technology is continually developing and will improve. Encourage innovation and competition. Allow maximum flexibility. Allow market to choose the best formats. SDMI- Framework, Not Format
PD Specification Covers • Application • Program that manages import of content, music libraries, playback and rights management • Portable Device (PD) • Device that stores protected content and plays it back • Portable Media (PM) • Media that stores protected content • Licensed Compliant Module (LCM) • Interfaces and/or translates communications between LCMs and PDs/PMs
Core Principles • SDMI components must respect any “usage rules” - which describe how the content can be used - that may come in the content in the future. • Any artist, band or record label that chooses to permit unlimited copying will have that option. • Any artist, band or record label that chooses to limit copying of an original will have that option. • This is a general principle for future application (e.g. electronically distributed music), not current product.
Core Principles • Any content to be used in an SDMI Portable Device must be protected at all times after it has been imported into the SDMI domain. • Subsequent storage, use within, or transfer between SDMI components must be done in a manner that protects the content.
Core Principles • Content must be bound to a Portable Device or Portable Media. • This ensures that a copy on a PD or PM will not become the source for additional copies. • This does not limit consumer usage because consumers can make copies for any device they choose - and as many devices as they need - and portable media can be transferred among compatible devices.
Core Principles SDMI components will accept both protected and unprotected music, e.g. MP3 files. • Unknown, unprotected music will be converted into SDMI content and stored in protected form. • Music from unknown sources (garage bands, church choirs) will not be excluded.
Legacy content (music on existing CDs) will not be technologically protected. Reasons:- Effective protection is not possible.- Technological impediments would merely be minor speed bumps to copying.- Necessary in order to permit church choirs and garage bands to use SDMI.- Respects privacy rights. Core Principles
Core Principles • Future content (music on future CDs, DVD-A and EMD) must be protected against Internet piracy. • Mechanism for protection yet to be determined. • One way this could be done is through a Dual Watermark System. • Robust watermark - will not degrade when compressed. • Fragile watermark - will disappear when compressed. • All music from unknown source passes through screen in SDMI application. Screen only permits in content that either has both marks or no marks.
Core Principles • Personal copying of CDs is permitted; Internet distribution without authorization is prevented. • Where “usage rules” are not found, SDMI components will only make 4 copies from every rip from the original. This allows personal copying - as much as necessary - but impedes piracy.
Core Principles • SDMI technology must be robust. • Security mechanisms must achieve certain requirements. • Tamper resistance in both software and hardware. • Content must be protected whenever exposed.
Implementation • Devices to develop in 2 phases. • 1st Phase • Screen music for a signal - time to upgrade to become a 2nd Generation device. • 2nd Phase • Dual Watermark or other system • Only upgraded phase 2 devices will play future releases.
Compliance with the Standard • Compliance is a condition of obtaining a trademark license to use an SDMI mark. • Compliance is a condition of obtaining a technology license for the Aris/4C watermark.
Marketing Efforts • Logo and Tagline for SDMI Compliant products.
Expectations • Some manufacturers have already announced plans for SDMI compliant products, and they should begin coming to market by January, 2000. • Goal and expectation is that SDMI compliant products will overtake non-compliant products within a few years.
Announcements to Date • Portable Devices • Diamond, Creative, Matsushita (Panasonic), Toshiba, Mitsubishi, Lucent, Sanyo, Philips, Sony, Thomson (RCA), Audiovox • Portable Media • Texas Instruments, QDesign, Iomega, SanDisk, Matsushita, Toshiba
Announcements to Date • Software • Microsoft, Intertrust, Reciprocal, WAVE, MusicMarc, Liquid Audio, Fraunhaufer, NatWest • Content • BMG, EMI, Sony, Universal, Warner, Rock.com
Future of SDMI - What’s Next? • Develop Functional Requirements • Issue Call for Proposals for implementation technologies • Develop specifications
SDMI has already achieved goals • Need for secure distribution accepted • Provided forum for dealmaking • Proved technology and content companies can work together • Launched legitimate market for digital music