National Academies Press: OpenBook
Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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The Digital Dilemma

Intellectual Property in the Information Age

Committee on Intellectual Property Rights and the Emerging Information Infrastructure

Computer Science and Telecommunications Board
Commission on Physical Sciences, Mathematics, and Applications
National Research Council

image

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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NATIONAL ACADEMY PRESS • 2101 Constitution Avenue, N.W. • Washington, D.C. 20418

NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.

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Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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THE NATIONAL ACADEMIES

National Academy of Sciences
National Academy of Engineering
Institute of Medicine
National Research Council

The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences.

The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. William A. Wulf is president of the National Academy of Engineering.

The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I. Shine is president of the Institute of Medicine.

The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Bruce M. Alberts and Dr. William A. Wulf are chairman and vice chairman, respectively, of the National Research Council.

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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COMMITTEE ON INTELLECTUAL PROPERTY RIGHTS AND THE EMERGING INFORMATION INFRASTRUCTURE

RANDALL DAVIS, Massachusetts Institute of Technology, Chair

SHELTON ALEXANDER, Pennsylvania State University

JOEY ANUFF, Wired Ventures

HOWARD BESSER, University of California, Los Angeles

SCOTT BRADNER, Harvard University

JOAN FEIGENBAUM, AT&T Labs-Research

HENRY GLADNEY, IBM Almaden Research Center

KAREN HUNTER, Elsevier Science Inc.

CLIFFORD LYNCH, Coalition for Networked Information

CHRISTOPHER MURRAY, O'Melveny & Myers LLP

ROGER NOLL, Stanford University

DAVID REED, Cable Television Laboratories Inc.

JAMES N. ROSSE, Freedom Communications Inc. (Ret.)

PAMELA SAMUELSON, University of California, Berkeley

STUART SHIEBER, Harvard University

BERNARD SORKIN, Time Warner Inc.

GARY E. STRONG, Queens Borough Public Library

JONATHAN TASINI, National Writers Union/UAW Local 1981

Staff

ALAN S. INOUYE, Program Officer

JERRY R. SHEEHAN, Senior Program Officer

MARJORY S. BLUMENTHAL, Executive Director

MARGARET MARSH, Project Assistant

NICCI T. DOWD, Project Assistant

MICKELLE RODGERS, Senior Project Assistant

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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COMPUTER SCIENCE AND TELECOMMUNICATIONS BOARD

DAVID D. CLARK, Massachusetts Institute of Technology, Chair

FRANCES E. ALLEN, IBM T.J. Watson Research Center

JAMES CHIDDIX, Time Warner Cable

JOHN M. CIOFFI, Stanford University

W. BRUCE CROFT, University of Massachusetts, Amherst

A.G. FRASER, AT&T

SUSAN L. GRAHAM, University of California, Berkeley

JAMES GRAY, Microsoft Corporation

PATRICK M. HANRAHAN, Stanford University

JUDITH HEMPEL, University of California, San Francisco

BUTLER W. LAMPSON, Microsoft Corporation

EDWARD D. LAZOWSKA, University of Washington

DAVID LIDDLE, Interval Research

JOHN MAJOR, WirelessKnowledge

TOM M. MITCHELL, Carnegie Mellon University

DONALD NORMAN, Unext.com

RAYMOND OZZIE, Groove Networks

DAVID A. PATTERSON, University of California, Berkeley

LEE SPROULL, New York University

LESLIE L. VADASZ, Intel Corporation

Staff

MARJORY S. BLUMENTHAL, Executive Director

JANE BORTNICK GRIFFITH, Interim Director (1998)

HERBERT S. LIN, Senior Scientist

JERRY R. SHEEHAN, Senior Program Officer

ALAN S. INOUYE, Program Officer

JON EISENBERG, Program Officer

GAIL PRITCHARD, Program Officer

JANET BRISCOE, Office Manager

MARGARET MARSH, Project Assistant

MICKELLE RODGERS, Research Assistant

SUZANNE OSSA, Senior Project Assistant

DAVID (D.C.) DRAKE, Project Assistant

DANIEL LLATA, Senior Project Assistant

BRANDYE WILLIAMS, Office Assistant

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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COMMISSION ON PHYSICAL SCIENCES, MATHEMATICS, AND APPLICATIONS

PETER M. BANKS, Veridian ERIM International Inc., Co-chair

W. CARL LINEBERGER, University of Colorado, Co-chair

WILLIAM F. BALLHAUS, JR., Lockheed Martin Corp.

SHIRLEY CHIANG, University of California, Davis

MARSHALL H. COHEN, California Institute of Technology

RONALD G. DOUGLAS, Texas A&M University

SAMUEL H. FULLER, Analog Devices Inc.

JERRY P. GOLLUB, Haverford College

MICHAEL F. GOODCHILD, University of California, Santa Barbara

MARTHA P. HAYNES, Cornell University

WESLEY T. HUNTRESS, JR., Carnegie Institution

CAROL M. JANTZEN, Westinghouse Savannah River Company

PAUL G. KAMINSKI, Technovation Inc.

KENNETH H. KELLER, University of Minnesota

JOHN R. KREICK, Sanders, a Lockheed Martin Co. (Ret.)

MARSHA I. LESTER, University of Pennsylvania

DUSA McDUFF, State University of New York, Stony Brook

JANET NORWOOD, Bureau of Labor Statistics (Ret.)

M. ELISABETH PATÉ-CORNELL, Stanford University

NICHOLAS P. SAMIOS, Brookhaven National Laboratory

ROBERT J. SPINRAD, Xerox PARC (Ret.)

NORMAN METZGER, Executive Director (through July 1999)

MYRON F. UMAN, Acting Executive Director

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Preface

The revolution in information technology is changing access to information in fundamental ways. Increasing amounts of information are available in digital form; networks interconnect computers around the globe; and the World Wide Web provides a framework for access to a vast array of information, from favorite family recipes and newspaper articles to scholarly treatises and music, all available at the click of a mouse. Yet the same technologies that provide vastly enhanced access also raise difficult fundamental issues concerning intellectual property, because the technology that makes access so easy also greatly aids copying—both legal and illegal. As a result, many of the intellectual property rules and practices that evolved in the world of physical artifacts do not work well in the digital environment. The issues associated with computerization are also amplified by the rise of the Internet and broader and more pervasive networking. These are the issues that inspired The Digital Dilemma.

This project grew out of a long history of Computer Science and Telecommunications Board (CSTB) interest in the legal issues related to computer technology in general and to intellectual property in particular. In 1991, CSTB published Intellectual Property Issues in Software, the report of a strategic forum in which I participated, and in 1994, it published the report of its second strategic forum, addressing intellectual property and other issues, entitled Rights and Responsibilities of Participants in Networked Communities. Recognizing the growing questions about intellectual property in the networked environment, CSTB hosted a project-planning meeting in December 1994 chaired by Pamela Samuelson (now at the

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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University of California, Berkeley) and involving experts from the areas of law, computer science, technology, library science, and publishing. In spring 1996, the former Federal Networking Council Advisory Committee (FNCAC) recommended that CSTB be asked to undertake a project in this area. After clarifying a division of labor with another part of the National Research Council (NRC) regarding the issues related to scientific databases as intellectual property,1 CSTB transmitted a proposal in late 1996 to the National Science Foundation (NSF), which then administered the FNCAC; the project was funded in the fall of 1997, and CSTB empaneled the Committee on Intellectual Property Rights and the Emerging Information Infrastructure at the end of 1997. The course of this project reflected the circumstances of the time in which it was undertaken: the climate in the late 1990s for thinking about intellectual property policy reflected the early and mid-1990s history of public debates associated with attention to national and global information infrastructure, a period in which information policy (which includes intellectual property, privacy, and free speech issues) began to inspire unusually vigorous public-interest-group and commercial advocacy activity.

CSTB's project was designed to assess issues and derive research topics and policy recommendations related to the nature, evolution, and use of the Internet and other networks, and to the generation, distribution, and protection of content accessed through networks. Box P.1 outlines the statement of task.

Committee Composition and Process

The study committee convened by CSTB included experts from industry, academia, and the library and information science community, with expertise that spanned networks, computer security, digital libraries, economics and public policy, public and academic libraries, intellectual property law, publishing, and the entertainment, software, and telecommunications industries (see Appendix A for the biographies of study committee members). It did its work through its own expert deliberations and by soliciting input and discussion from key officials from the sponsoring agencies, other government officials, technologists, legal experts, economists, social scientists, librarians, industry experts, and advocacy

1A concurrent NRC study produced A Question of Balance: Private Rights and the Public Interest in Scientific and Technical Databases (National Academy Press, Washington, D.C., 1999), which identifies and evaluates the various existing and proposed policy approaches (including related legal, economic, and technical considerations) for protecting the proprietary rights of private-sector database rights holders while promoting and enhancing access to scientific and technical data for public-interest uses.

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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BOX P. 1
Synopsis of the Statement of Task

1. Assess the state of the art and trends in network and document or content technologies relevant to intellectual property rights management. The challenge is to sort out which trends are relevant, enduring, and promising, and how new communications and information technology may vitiate existing protection for intellectual property that the law offers to creators, users, and distributors.

2. Identify emerging opportunities and forms of publishing that have no precedents in existing media or current copyright law that may present new needs and opportunities for managing intellectual property rights.

3. Describe how electronic distribution is changing the markets (scaia, distribution, cost incidence for information products, whether they are available in alternative media or only electronically. This includes the rapidly changing structure of information and communications industries that operate and provide content for networks.

4. Assess the kinds, quality, and sufficiency of available data for measuring and analyzing relevant trends in the supply and demand for networked information services and associated electronic publishing of various kinds.

5. Review the characteristics of existing and proposed intellectual property law for both copyrights works and noncopyrightable databases, in the United States and internationally, and the potential impacts of the proposed legal changes on the nation's research, education, and federal networking communities as information providers, distributors, and users of content.

6. Consider the mapping of technology and content elements, their owners, and their rights and responsibilities (e.g., the changing nature of liability and responsibility for service providers). Given that understanding, develop recommendations on how new technology might provide new mechanisms and tools to protect both necessary to respond adequately to the changing networked environment, while maintaining a reasonable balance between the protection of property rights and public interests.

group spokespersons (see Appendix B for a list of briefers to the committee). The committee met first in February 1998 and five times subsequently; it revised and strengthened its report during mid-1999.

Central to the content and flavor of The Digital Dilemma is the fact that the authoring committee is, by design, a microcosm of the diverse community of interest. Because of the contentious nature of intellectual property issues, every effort was made to ensure that a broad range of perspectives was represented—on the membership of the study committee, in the solicitation of briefings and other inputs to committee meeting agendas, and in the materials distributed to the study committee. The contention was evident throughout the course of the study, beginning

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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with adjustments to committee composition to assure balance and continuing through committee debates on the numerous issues it addressed. It is an accomplishment that the committee agreed on its characterization of key issues and on a number of recommendations. It is not surprising, however, that the committee could not agree on all of the recommendations that it contemplated. In Chapter 6, uncharacteristically for a CSTB report, a number of issues are presented by articulating the different schools of thought. In these areas, the committee sought to inform debates that must continue because coming to a national consensus now—and deciding on policy that will have far-reaching impacts—is premature. Among the contributions of the report, therefore, is an articulation of the nature and concerns of multiple stakeholders—whose involvement is important for sound policy making—and a description of the issues where progress may be difficult in the near term.

Acknowledgments

The committee appreciates the financial support and guidance provided by the National Science Foundation. Within the Directorate for Computer and Information Sciences and Engineering, the Division of Information and Intelligent Systems (Programs on Computation and Social Systems and Information and Data Management), the Division of Experimental and Integrative Activities, and the Division of Advanced Networking Infrastructure and Research provided support for this study, coordinated through Suzanne Iacono and Les Gasser (formerly at NSF; now at the University of Illinois, Urbana-Champaign). In addition, the Directorate for Social, Behavioral, and Economic Sciences provided support for this study through the Division of Science Resources Studies and the Division of Social and Economic Sciences (Programs on the Law and Social Sciences and Societal Dimensions of Engineering, Science, and Technology), coordinated through Eileen Collins.

We would also like to acknowledge the role of the Large Scale Networking Group of the Subcommittee on Computing, Information, and Communications (formerly the Federal Networking Council) and the instrumental efforts of Carol C. Henderson (formerly of the American Library Association) and Frederick Weingarten (American Library Association) in helping to launch this study.

Throughout the course of this study, a number of individuals contributed their expertise to the committee's deliberations. The committee is grateful to those who agreed to provide testimony at its three open meetings (see Appendix B). In addition, the committee would like to acknowledge Rick Barker (Digital Stock), Steven M. Bellovin (AT&T Labs-Research), Bruce Bond (The Learning Company), Scott Carr (Digimarc),

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Stephen Crocker (Steve Crocker Associates), William Densmore (Clickshare), Laurel Jamtgaard (Fenwick & West), Robert P. Merges (University of California, Berkeley), Steve Metalitz (International Intellectual Property Alliance), Diane Pearlman (Online Monitoring Services), Shira Perlmutter (U.S. Copyright Office), Burt Perry (Digimarc), Marybeth Peters (U.S. Copyright Office), Paul Schneck (MRJ Technology Solutions), John Schull (Softlock Services), Oz Shy (University of Haifa), Linda Stone (Mitretek), Robert Thibadeau (Television Computing Inc.), and David Van Wie (Intertrust).

The committee appreciates the thoughtful comments received from the reviewers of this report and the efforts of the review monitor and review coordinator (who represent the Report Review Committee and the Commission on Physical Sciences, Mathematics, and Applications, respectively). These comments were instrumental in helping the committee to sharpen and improve this report.

Finally, the committee would like to acknowledge the staff of the National Research Council for their hard work. As the primary professional staff member responsible for the study, Alan Inouye crafted meeting agendas; drafted, edited, and revised text; and completed numerous other tasks that were instrumental in moving the committee from its initial discussions to this final report of the committee. Alan's consistent and apparently bottomless energy, insight, dedication to the task, and willingness to nag when needed were instrumental in getting this project to completion; it would not have been done nearly so well without his involvement. Jerry Sheehan shared the primary staff responsibilities with Alan Inouye during the first half of the study and continued to provide comments on the report manuscript as it progressed. Marjory Blumenthal provided input and guidance that were valuable in improving the final drafts of this report. Margaret Marsh, Nicci Dowd, and Mickelle Rodgers provided the committee with excellent support for meetings during the course of the study. The contributions of editors Susan Maurizi and Kim Briggs are gratefully acknowledged. Angela Chuang and Tom Lee, doctoral candidates at the University of California, Berkeley and the Massachusetts Institute of Technology, respectively, Jim Igoe, and Margaret Marsh provided valuable research assistance. D.C. Drake and Suzanne Ossa of the CSTB and Theresa Fisher, Claudette Baylor-Fleming, and Sharon Seaward of the Space Studies Board assisted with the final preparation of this report.

RANDALL DAVIS, CHAIR
COMMITTEE ON INTELLECTUAL PROPERTY RIGHTS AND THE EMERGING INFORMATION INFRASTRUCTURE

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Acknowledgment of Reviewers

This report was reviewed by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council's (NRC's) Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the authors and the NRC in making the published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The contents of the review comments and draft manuscript remain confidential to protect the integrity of the deliberative process. We wish to thank the following individuals for their participation in the review of this report:

Stephen Berry, University of Chicago,

Lewis M. Branscomb, Harvard University,

Julie E. Cohen, Georgetown University Law Center,

Charles Ellis, John Wiley & Sons,

Edward W. Felten, Princeton University,

Laura Gasaway, University of North Carolina, Chapel Hill,

Jane C. Ginsburg, Columbia University School of Law,

Stuart Haber, InterTrust,

Trotter I. Hardy, College of William and Mary Law School,

Peter F. Harter, EMusic.com Inc.,

Michael Hawley, Massachusetts Institute of Technology,

James Horning, InterTrust,

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Mitchell D. Kapor, Kapor Enterprises Inc.,

Kenneth H. Keller, University of Minnesota,

Eileen Kent, Consultant,

Andrew Lippman, Massachusetts Institute of Technology,

Deanna Marcum, Council on Library and Information Resources,

Michael Moradzadeh, Intel Corporation,

Andrew Odlyzko, AT&T Labs-Research,

Ann Okerson, Yale University,

Harlan Onsrud, University of Maine,

Bruce Owen, Economists Inc.,

Anthony Stonefield, Global Music One,

Morris Tanenbaum, AT&T (Ret.),

Hal Varian, University of California, Berkeley,

Frederick W. Weingarten, American Library Association,

Richard Weisgrau, American Society of Media Photographers,

Steven Wildman, Northwestern University, and

Kurt Wimmer, Covington & Burling.

Although the individuals listed above provided many constructive comments and suggestions, responsibility for the final content of this report rests solely with the study committee and the NRC.

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Contents

Executive Summary

1

1
Emergence of the Digital Dilemma

23

An Enduring Balance Upset?

24

Scope of the Report

27

Origins of the Issues

28

Technology Has Changed: Digital Information, Networks, and the Web

28

Why Digital Information Matters

28

Why Computer Networks Matter: Economics and Speed of Distribution

38

Why the Web Matters

39

The Programmable Computer Makes a Difference

43

Technology Has Emerged into Everyday Life, Running Headlong into Intellectual Property

45

Intellectual Property Law Is Complex

47

Cyberspace Is an Odd New World

49

What Makes Progress Difficult?

51

Stakeholders' Interests Are Diverse

51

There Is a Variety of Forces at Work

52

Many Threads Are Intertwined: Technology, Law, Economics, Psychology and Sociology, and Public Policy

53

The Problems Are Global, with Differing Views, Laws, and Enforcement Around the World

54

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Potential Solutions Have to Be Evaluated from a Variety of Perspectives

58

Road Map for the Report

60

Addendum: The Concerns of Stakeholders

61

Creators of Intellectual Property

61

Distributors

65

Schools and Libraries

68

The Research Community

70

The General Public

71

Other Consumers and Producers of Intellectual Property

73

Governmental Organizations

73

Private Sector Organizations

74

Journalists

75

Standards Organizations

75

2
Music: Intellectual Property's Canary in the Digital Coal Mine

76

Why Music?

77

W(h)ither the Market?

78

What Can Be Done?

79

The Business Model Response

79

Make the Content Easier and Cheaper to Buy Than to Steal

80

Use Digital Content to Promote the Traditional Product

81

Give Away (Some) Digital Content and Focus on Auxiliary Markets

82

The Technical Protection Response

83

Mark the Bits

83

Reattach the Bits

84

A Scenario

86

Constraints on Technological Solutions

87

Industry Consequences of the New Technology

89

The Broader Lessons

94

3
Public Access to the Intellectual, Cultural, and Social Record

96

Public Access Is an Important Goal of Copyright

97

Access: Licensing Offers Both Promise and Peril

100

Access and Technical Protection Services

104

The New Information Environment Challenges Some Access Rules

106

The New Information Environment Blurs the Distinction Between Public and Private

107

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Noncopyrightable Databases Present Access Challenges

109

The Information Infrastructure Is Changing the Distribution of and Access to Federal Government Information

111

Archiving of Digital Information Presents Difficulties

113

Fundamental Intellectual and Technical Problems in Archiving

116

Intellectual Property and Archiving of Digital Materials

119

Technical Protection Services and Archiving

121

4
Individual Behavior, Private Use and Fair Use, and the System for Copyright

123

Understanding Copyright in the Digital Environment

123

The General Public

124

Rights Holders

128

The Challenge of Private Use and Fair Use with Digital Information

129

The Wide Range of Private Use Copying

130

Arguments That Private Use Copying Is Not Fair Use

132

Arguments That Private Use Copying Is Fair Use

133

Private Use Copying: The Committee's Conclusions

135

The Future of Fair Use and Other Copyright Exceptions

136

Is ''Copy" Still an Appropriate Fundamental Concept?

140

Control of Copying

140

Is Control of Copying the Right Mechanism in the Digital Age?

141

What Can Be Done?

144

Addendum: Sections 106,107, and 109 of the U.S. Copyright Law

145

5
Protecting Digital Intellectual Property: Means and Measurements

152

Technical Protection

153

Encryption: An Underpinning Technology for Technical Protection Service Components

156

Access Control in Bounded Communities

158

Enforcement of Access and Use Control in Open Communities

159

Copy Detection in Open Communities: Marking and Monitoring

164

Trusted Systems

167

Protection Technologies for Niches and Special-Purpose Devices

171

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Technical Protection Services, Testing, and the Digital Millennium Copyright Act of 1998

171

What Makes a Technical Protection Service Successful?

173

The Role of Business Models in the Protection of Intellectual Property

176

The Impact of the Digital Environment on Business Models

177

Business Models for Handling Information

179

Traditional Business Models

179

Intellectual Property Implications of Traditional Business Models

180

Less Traditional Business Models

181

Intellectual Property Implications of Less Traditional Business Models

182

Business Models as a Means of Dealing with Intellectual Property

183

Illegal Commercial Copying

186

The Impact of Granting Patents for Information Innovations

192

6
Conclusions and Recommendations

199

The Digital Dilemma: Implications for Public Access

201

The Value of Public Access

201

Consequences of the Changing Nature of Publication and the Use of Licensing and Technical Protection Services

202

Publication and Private Distribution

205

Mass Market Licenses

205

Archiving and Preservation of Digital Information

206

Digital Archives

206

Preservation

209

Access to Federal Government Information

211

The Digital Dilemma: Implications for Individual Behavior

212

Perceptions and Behavior of Individuals

212

Fair Use and Private Use Copying

213

Copyright Education

216

Moving Beyond the Digital Dilemma: Additional Mechanisms for Making Progress

217

Technical Protection Services

217

The Digital Millennium Copyright Act of 1998

221

Business Models

224

The Interaction of Technical Protection Services, Business Models, Law, and Public Policy

225

Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Moving Beyond the Dilemma: A Call for Research and Improved Data,

225

Illegal Commercial Copying,

226

Research on the Economics of Copyright, Use of Patents, and Cyber Law,

227

Is "Copy" Still the Appropriate Foundational Concept?,

230

Content Creators and the Digital Environment,

232

The Process of Formulating Law and Public Policy,

233

Principles for the Formulation of Law and Public Policy,

235

Concluding Remarks,

239

Bibliography

240

Appendixes

 

A Study Committee Biographies

253

B Briefers to the Committee

261

C Networks: How the Internet Works

263

D Information Economics: A Primer

271

E Technologies for Intellectual Property Protection

282

F Copyright Education

304

G The Digital Millennium Copyright Act of 1998 and Circumvention of Technological Protection Measures

311

Index

331

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Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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Suggested Citation:"Front Matter." National Research Council. 2000. The Digital Dilemma: Intellectual Property in the Information Age. Washington, DC: The National Academies Press. doi: 10.17226/9601.
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The Digital Dilemma: Intellectual Property in the Information Age Get This Book
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Imagine sending a magazine article to 10 friends-making photocopies, putting them in envelopes, adding postage, and mailing them. Now consider how much easier it is to send that article to those 10 friends as an attachment to e-mail. Or to post the article on your own site on the World Wide Web.

The ease of modifying or copying digitized material and the proliferation of computer networking have raised fundamental questions about copyright and patent--intellectual property protections rooted in the U.S. Constitution. Hailed for quick and convenient access to a world of material, the Internet also poses serious economic issues for those who create and market that material. If people can so easily send music on the Internet for free, for example, who will pay for music?

This book presents the multiple facets of digitized intellectual property, defining terms, identifying key issues, and exploring alternatives. It follows the complex threads of law, business, incentives to creators, the American tradition of access to information, the international context, and the nature of human behavior. Technology is explored for its ability to transfer content and its potential to protect intellectual property rights. The book proposes research and policy recommendations as well as principles for policymaking.

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