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Next-Gen DVD Support Yanked from 32-Bit Vista

August 25, 2006 by

Microsoft has announced that the 32-bit version of its forthcoming Windows Vista operating system product won’t support playing commercially-produced next-generation DVDs (i.e., HD-DVD and Blu-Ray discs), according to Dan Warne’s story at APC. 32-bit Vista will be able to access the discs, reading and writing ordinary content, but they won’t be allowed to access DRM-encoded content such as major studio movies.

For those not up on the jargon, Vista is the next major version of Windows. There are different flavors of Vista for 32-bit processors and 64-bit processors. virtually all of the computers in use today, and most of the ones for sale in stores, use 32-bit processors, so they’ll run the 32-bit version of Vista – the one that won’t be able to play next-gen DVDs.

The reason, Microsoft says, is that the DVD cartel won’t license them the right to read DRMed content on 32-bit Vista. The problem is supposedly that 32-bit Vista allows the use of unsigned device drivers, while 64-bit Vista allows only signed drivers. To be signed, a device driver has to be approved by a special testing bureaucracy, according to criteria set up by Microsoft. (Device drivers are small programs that allow the system to interact with external devices or services.)

Optional signing of device drivers is a fine idea. Bad device drivers have caused many headaches for Windows users, so it’s good to give users more control over which drivers are on their systems. Users have to make choices about which drivers to install, and a Microsoft-sponsored stamp of approval, as provided by the signing process, helps users make that decision. All of this is helpful, as long as it is ultimately the user who decides what is safe to use on his computer.

But the reality is that lots of good and useful drivers are unsigned, because companies don’t want to subject themselves to the certification process. Competent users accept unsigned drivers all the time – my two-month-old Windows XP laptop has a few dozen unsigned drivers, many of which were pre-installed by the manufacturer.

In short, moving to 64-bit Vista, to get next-gen DVD playback with Windows, means giving up your current computer and some of your current peripherals and applications. You can be compatible with next-gen DVDs, or you can be compatible with the other stuff you use. Your choice.

Or you could just get one of the other Windows-compatible DVD player applications. According to an anonymous Microsoft source quoted at BoingBoing, Hollywood’s objection to next-gen DVDs on Vista-32 applies to Microsoft but not to third-party player applications like WinDVD and PowerDVD. Those apps will be allowed to play next-gen DVDs on Vista-32 and WinXP, even in the presence of unsigned drivers. If the goal is to stop piracy, this decision makes no technical sense. If unsigned drivers are a threat to DRM, it doesn’t matter whether those drivers are attacking a Microsoft-brand player application or a third-party application. So why did Hollywood refuse to license only Microsoft?

The BoingBoing source offers two hypotheses:

This leads folks at Microsoft to conclude either:

A) The studios don’t understand the technology enough to see these risks clearly, or

B) They just want to screw Microsoft

The studios all have tech consultants, and many of them are not fools, so A seems unlikely. B also doesn’t seem completely likely. It’s probably the usual: human stupidity rolled up in a big ball.

The stupidity-ball explanation is always a contender in cases like this, but I wouldn’t rule out A or B either. Yes, the studios have tech consultants, but they had equally good consultants when they chose the horribly misdesigned CSS as the encryption scheme for first-gen DVDs, which suggests that they don’t always listen to the consultants.

There’s an interesting connection to antitrust policy here. Microsoft’s business strategy is apparently to tie Media Player to Windows. Antitrust authorities, in Europe at least, didn’t like this, and so Microsoft is claiming that Media Player is an Integral Part of Windows and not just a nice application that is designed to work well with Windows. (Recall that they tried the same argument for Internet Explorer in the U.S. antitrust case, and the U.S. courts didn’t buy it.)

This may affect the DVD cartel’s decisionmaking in at least two ways. First, if they fell for the line that Media Player is not just another pretty app, they may have concluded that it made sense to hold Media Player accountable for the Windows “bug” of allowing unsigned drivers. This makes no sense from a content security standpoint, but remember that these are the same people who thought CSS was a good idea.

Another possibility is that the DVD cartel is implementing its own antitrust policy, encouraging competition in the market for Windows-compatible DVD players by neutralizing Microsoft’s tying strategy. Having acquired quasi-governmental power to regulate the design of DVD players and the structure of DVD-related markets, the cartel would naturally want to prevent any player vendor from accumulating market power.

All of this brings us back to Tim Wu’s paper about the drawbacks of putting one small group in charge of a whole economic sector. Markets may make good decisions – if they’re competitive – but there’s no guarantee that a single entity will make good decisions. That’s especially true if we put a small group of movie executives and lawyers in charge of technology design.

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PRM Wars

August 16, 2006 by

Today I want to wrap up the recap of my invited talk at Usenix Security. Previously (1; 2) I explained how advocates of DRM-bolstering laws are starting to switch to arguments based on price discrimination and platform lock-in, and how technology is starting to enable the use of DRM-like technologies, which I dubbed Property Rights Management or PRM, on everyday goods. Today I want to speculate on how the policy argument over PRM might unfold, and how it might differ from today’s debate over copyright-oriented DRM.

As with the DRM debate, the policy debate about PRM shouldn’t be (directly) about whether PRM is good or bad, but should instead be about whether the law should bolster PRM by requiring, subsidizing, or legally privileging it; or hinder PRM by banning or regulating it; or maintain a neutral policy that lets companies build PRM products and others to study and use them as they see fit.

What might a PRM-bolstering law look like? One guess is that it will extend the DMCA to PRM scenarios where no copyrighted work is at issue. Courts have generally read the DMCA as not extending to such scenarios (as in the Skylink and Static Control cases), but Congress could change that. The result would be a general ban on circumventing anti-interoperability technology or trafficking in circumvention tools. This would have side effects even worse than the DMCA’s, but Congress seemed to underestimate the DMCA’s side effects when debating it, so we can’t rule out a similar Congressional mistake again.

The most important feature of the PRM policy argument is that it won’t be about copyright. So fair use arguments are off the table, which should clarify the debate all around – arguments about DRM and fair use often devolve into legal hairsplitting or focus too much on the less interesting fair use scenarios. Instead of fair use we’ll have the simpler intuition that people should be able to use their stuff as they see fit.

We can expect the public to be more skeptical about PRM than DRM. Users who sympathize with anti-infringement efforts will not accept so easily the desire of ordinary manufacturers to price discriminate or lock in customers. People distrust DRM because of its side-effects. With PRM they may also reject its stated goals.

So the advocates of PRM-bolstering laws will have to change the argument. Perhaps they’ll come up with some kind of story about trademark infringement – we want to make your fancy-brand watch reject third-party watchbands to protect you against watchband counterfeiters. Or perhaps they’ll try a safety argument – as responsible automakers, we want to protect you from the risks of unlicensed tires.

Our best hope for sane policy in this area is that policymakers will have learned from the mistakes of DRM policy. That’s not too much to ask, is it?

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DRM Wars: Property Rights Management

August 14, 2006 by

In the first part of my invited talk at Usenix Security, I argued that as the inability of DRM technology to stop peer-to-peer infringement becomes increasingly obvious to everybody, the rationale for DRM is shifting. The new argument for DRM-bolstering laws is that DRM enables price discrimination and platform lock-in, which are almost always good for vendors, and sometimes good for society as a whole. The new arguments have no real connection to copyright enforcement so (I predict) the DRM policy debate will come unmoored from copyright.

The second trend I identified in the talk was toward the use of DRM-like technologies on traditional physical products. A good example is the use of cryptographic lockout codes in computer printers and their toner cartridges. Printer manufacturers want to sell printers at a low price and compensate by charging more for toner cartridges. To do this, they want to stop consumers from buying cheap third-party toner cartridges. So some printer makers have their printers do a cryptographic handshake with a chip in their cartridges, and they lock out third-party cartridges by programming the printers not to operate with cartridges that can’t do the secret handshake.

Doing this requires having some minimal level of computing functionality in both devices (e.g., the printer and cartridge). Moore’s Law is driving the size and price of that functionality to zero, so it will become economical to put secret-handshake functions into more and more products. Just as traditional DRM operates by limiting and controlling interoperation (i.e., compatibility) between digital products, these technologies will limit and control interoperation between ordinary products. We can call this Property Rights Management, or PRM.

(Unfortunately, I didn’t coin this term until after the talk. During the actual talk I used the awkward “DRM-like technologies”.)

Where can PRM technologies be deployed? I gave three examples where they’ll be feasible before too many more years. (1) A pen may refuse to dispense ink unless it’s being used with licensed paper. The pen would handshake with the paper by short-range RFID or through physical contact. (2) A shoe may refuse to provide some features, such as high-tech cushioning of the sole, unless used with licensed shoelaces. Again, this could be done by short-range RFID or physical contact. (3) The scratchy side of a velcro connector may refuse to stick to the fuzzy size unless the fuzzy side is licensed. The scratchy side of velcro has little hooks to grab loops on the fuzzy side; the hooks may refuse to function unless the license is in order. For example, Apple could put PRMed scratchy-velcro onto the iPod, in the hope of extracting license fees from companies that make fuzzy-velcro for the iPod to stick to.

[UPDATE (August 16): I missed an obvious PRM example: razors and blades. The razor would refuse to grip the blade unless the blade knew the secret handshake.]

Will these things actually happen? I can’t say for sure. I chose these examples to illustrate how far PRM micht go. The examples will be feasible to implement, eventually. Whether PRM gets used in these particular markets depends on market conditions and business decisions by the vendors. What we can say, I think, is that as PRM becomes practical in more product areas, its use will widen and we’ll face policy decisions about how to treat it.

To sum up thus far, the arguments for DRM are disconnecting from copyright, and the mechanisms of DRM are starting to disconnect from copyright in the form of Property Rights Management. Where does this leave the public policy debates? That will be the topic of the next (and final) installment.

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DRM Wars: The Next Generation

August 9, 2006 by

Last week at the Usenix Security Symposium, I gave an invited talk, with the same title as this post. The gist of the talk was that the debate about DRM (copy protection) technologies, which has been stalemated for years now, will soon enter a new phase. I’ll spend this post, and one or two more, explaining this.

Public policy about DRM offers a spectrum of choices. On one end of the spectrum are policies that bolster DRM, by requiring or subsidizing it, or by giving legal advantages to companies that use it. On the other end of the spectrum are policies that hinder DRM, by banning or regulating it. In the middle is the hands-off policy, where the law doesn’t mention DRM, companies are free to develop DRM if they want, and other companies and individuals are free to work around the DRM for lawful purposes. In the U.S. and most other developed countries, the move has been toward DRM-bolstering laws, such as the U.S. DMCA.

The usual argument in favor of bolstering DRM is that DRM retards peer-to-peer copyright infringement. This argument has always been bunk – every worthwhile song, movie, and TV show is available via P2P, and there is no convincing practical or theoretical evidence that DRM can stop P2P infringement. Policymakers have either believed naively that the next generation of DRM would be different, or accepted vague talk about speedbumps and keeping honest people honest.

At last, this is starting to change. Policymakers, and music and movie companies, are starting to realize that DRM won’t solve their P2P infringement problems. And so the usual argument for DRM-bolstering laws is losing its force.

You might expect the response to be a move away from DRM-bolstering laws. Instead, advocates of DRM-bolstering laws have switched to two new arguments. First, they argue that DRM enables price discrimination – business models that charge different customers different prices for a product – and that price discrimination benefits society, at least sometimes. Second, they argue that DRM helps platform developers lock in their customers, as Apple has done with its iPod/iTunes products, and that lock-in increases the incentive to develop platforms. I won’t address the merits or limitations of these arguments here – I’m just observing that they’re replacing the P2P piracy bogeyman in the rhetoric of DMCA boosters.

Interestingly, these new arguments have little or nothing to do with copyright. The maker of almost any product would like to price discriminate, or to lock customers in to its product. Accordingly, we can expect the debate over DRM policy to come unmoored from copyright, with people on both sides making arguments unrelated to copyright and its goals. The implications of this change are pretty interesting. They’ll be the topic of my next post.

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The Freedom to Tinker with Freedom?

July 26, 2006 by

Doug Lay, commenting on my last post, pointed out that the Zune buyout would help make a world of DRM-enabled music services more attractive. “Where,” he asked, “does this leave the freedom to tinker?”

Anti-DMCA activism has tended to focus on worst-case, scary scenarios that can spur people to action. It’s a standard move in politics of all kinds, aptly captured in the title of a 2005 BBC documentary about Bush and Blair, The Power of Nightmares. In the context of a world of DRM gone mad, it’s obvious why we need the freedom to tinker. We need it because (in that world) opaque, tinker-proof devices protected by restrictive laws would be extremely harmful to consumers. The only way to make sure that the experience of the average media viewer or software user doesn’t go down the tubes, in this scenario, is to make sure that consumers, either legislatively or through individual choice, never let DRM get off the ground.

But consider an alternative possibility. The Darknet is a permanent backdrop for any real-world system. The major players know this – after all, it was a team at Microsoft Research that helped to launch the Darknet idea. The big players will, in the long run, be smart enough not to drive users into the arms of the Darknet. They will compete with the Darknet, and with each other, and will end up producing systems that most consumers think are fine. Yes, consumers will (still) chafe at the restrictions on DRM-protected systems ten or twenty years from now. But on the whole, they will find that these systems are attractive, and worth investing in.

Who loses in this scenario? Ed and others have argued that all consumers will suffer to some degree because we all enjoy the benefits that come from a few intrepid power users excercising the freedom to tinker. There are educational benefits that come from tinkering and, perhaps most importantly, the freedom to tinker keeps technologies flexible and leaves room for them to interoperate in surprising ways not initially envisioned by their creators. And, as Alex has pointed out to me, the social costs of tinkerproofing are cumulative in such a way that there may be a collective bargaining problem–we may have a situation in which the freedom to tinker does not matter very much to most individuals, but we’d all be better off if, collectively, we assigned a higher value to our individual freedom to tinker than we actually feel for it.

These arguments certainly have significant merit. Together, they (and others like them) might be enough to make it the case that we should create legal protection for the freedom to tinker, or at least build a social consensus for the importance of tinkering.

But I think the people who lose the most, in this DRM-isn’t-so-bad scenario, are the power users. People who like to poke around under the hood. People who are outliers, attaching more importance to the freedom to tinker than a typical consumer attaches to it. I’m talking, in other words, about us.

We the reader-participants of www.freedom-to-tinker.com are an unusual bunch. We really like to tinker. In my own case, I know that I care more about things like being able to time and space shift my media collection than the average person does. I derive a certain strange pleasure from being able to change the way the interface on my desktop computer looks. I buy books so I can mark them up, even though it would be much cheaper and more space-efficient to use a library.

In fact, when I think about it, I have to admit that I would find a world where DRM works and the ability to tinker can be bargained away to be a bit of a downer. I know that the equilibrium point the market reaches, in such a case, will be based on the moderate importance most people attach to tinkering, rather than the high importance that I attach to it. I’ll probably still buy in to some DRM-based music scheme in the long run, just as I still go to the movies even while wishing that they would focus more on plot and less on special effects. But I’ll miss the tinkering.

If the government were to put a legal guarantee behind the freedom to tinker, it would be reducing peoples’ freedom to contract by telling them they can’t bargain away their tinkering rights. It would force on consumers as a whole an outcome that they would manifestly not choose for themselves in the private market. Yes, it is possible that externalities or collective action issues could justify this coercion. But even if those considerations didn’t justify the coercion, part of me would still want it to happen, because that way, I’d get to keep tinkering rights that, under a different terrain of options, I would end up choosing to relinquish.

I apparently haven’t mastered the art of ending a blog post, so just as I closed last time with a “bottom line,” this one gets a “moral of the story.” The moral of the story is that many of us, who may find ourselves arguing based on public reasons for public policies that protect the freedom to tinker, also have a private reason to favor such policies. The private reason is that we ourselves care more about tinkering than the public at large does, and we would therefore be happier in a protected-tinkering world than the public at large would be. We all owe it to ourselves, to each other, and to the public with whom we communicate to be careful and candid about our mixture of motivations.

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