Is DRM the Great Spoiler in the IDM Marketplace?

Is DRM the Great Spoiler in the IDM Marketplace?

Ilyas Balgayev (Nanyang Technological University, Singapore), Phng Jia Shyan (Nanyang Technological University, Singapore) and Kaung Myat Win (Nanyang Technological University, Singapore)
DOI: 10.4018/978-1-4666-2136-7.ch081
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Digital Rights Management (DRM) has been a popular option employed by firms to deal with piracy issues. The rationale of DRM, the expected benefits for firms, and their implications in the Interactive Digital Media (IDM) marketplace are presented. Using the VISOR framework, the chapter also analyses the impacts of DRM based in the IDM marketplace, and to suggest if DRM is the great spoiler in the IDM marketplace. Studies have shown that the advantages brought by DRM to firms go beyond what would be needed for an efficient provision of digital goods. The chapter concludes with some recommendations and suggestions whether DRM is the great spoiler in the IDM marketplace.
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Digital Rights Management

As music and films are becoming more and more popular for consumption via the Internet, this is exactly where DRM plays its role by providing a secure environment for transactions of copyrighted content in the networked world to be sold and purchased (Sensarkar, 2007). DRM is a generic term for a set of technologies for the identification and protection of intellectual property in digital form (Sensarkar, 2007). There is no big difference between the electronic and the common meaning of the term “copyright” (Rao, 2003). The term ‘e-copyright’ came from the time of Napster, peer-to-peer file-sharing service. It gave an opportunity to users to illegally distribute and exchange digital music files. File-sharing is a highly dynamic field with variety of publication platforms and access tools. New tools like torrent networks appeared on the horizon that sequentially substitute file-sharing services (Wolf et al., 2007). The challenge is to prevent access to content without an authorization, in other words, consumer’s usage rights must be explicitly expressed so that content providers do not lose out on generating their revenue.

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