Human Rights Committee questions Digital Economy Bill compliance with ECHR

Posted by scott on February 5th, 2010

The UK parliament’s joint committee on human rights have published a report criticising the government’s attempts , through the Digital Economy Bill, to tackle illegal file-sharing. They say the bill – as currently drafted - may create over-broad powers, and that some provisions in the Bill are not specified in enough detail to ensure that they will operate in a way which does not risk a breach of individual rights.

The committee looked at the bill and the Explanatory Notes and Human Rights Memoranda. The Committee points out that The Explanatory Notes to the Bill provide a basic explanation of the Government’s view that the Bill is compatible with the European Convention of Human Rights (ECHR) and that the supplementary Human Rights Memorandum accurately identifies a number of relevant human rights issues. However they found that the substance of the analysis in the memorandum adopts practices they had previously criticised – namely relying on Section 6 of the Human Rights Act 1998 to justify their view that broad discretionary powers in a Bill or in secondary legislation will operate in a way which is compatible with human rights. “On the issue of online copyright infringement: the Memorandum does not contain much detail in its analysis of a number of rights; inaccurately identifies the proportionality exercise required; and fails to consider the arguments for justification in any detail. In addition, it relies on the Section 6 HRA 1998 duty on both the Secretary of State and OFCOM to argue that certain delegated powers are appropriate and will not be exercised in a manner which breaches Convention rights.”

Copyright infringement reports

The Committee find it unlikely that the issuing of such report by ISPs will result in a significant risk of a breach of individual internet users’ pivacy rights although they still call on the Government to provide a further explanation of why they consider their proposals are proportionate in the light of the fact that the copyright infringement report and any subsequent list may form the basis for the imposition of technical measures which will have a more significant impact. Here they were referring in particular to the lack of detail about the process provided on the face of the Bill re: a legal limit on the circumstances in which an ISP will be required to disclose a copyright infringement list – how many ‘alleged’ infringements and over what timescale.

Technical measures

The Committee correctly identify that meat on the bones in these proposals in missing from the bill and state that they do “not believe that such a skeletal approach to powers which engage human rights is Appropriate” They find there is potential for these powers to be applied in a disproportionate manner which could lead to a breach of internet users’ rights to respect for correspondence and freedom of expression.

The Committee point out that the entire technical measures mechanism will be created by a combination of secondary legislation and the “technical obligations code”. This means that a number of key features are undefined or extremely broad. They say it is all very well for the Government to say that individual copyright holders will provide evidence and will only seek sanctions against “serious infringers”, but neither of these things is outlined in the text of the Bill and that the standard of evidence expected or the standard of proof to apply has also not been clearly explained.

In their view the government still needed to address the following:

a) the precise intended impact of these proposals on individual accounts, including (i) whether technical measures may include indefinite suspension of an account and whether any service limitations imposed will be for a specified time-frame and/or renewable; and (ii) any potential impact the imposition of technical measures may have on the ability of a user to secure an alternative service;

b) the minimum criteria which would be required to be satisfied before the imposition of technical measures. The Government has indicated that technical measures will follow the issue of copyright infringement notices. It would be helpful if the Government could clarify whether (i) the imposition of technical measures will be subject only to the initial assessment of the copyright holder that it appeared that the individual service user had breached his or her copyright; and (ii) if so, would the same standard of evidence and proof be required for the imposition of technical measures as would be required for the issue of copyright infringement reports?

The Committee recommended that “the Bill be amended to make it clear that technical measures may only be introduced after an assessment by OFCOM of the necessity and proportionality of these new measures, taking into account the impact of the initial obligations code. In so far as it is possible, we recommend that the Bill should be amended to provide additional details on the minimum criteria for the imposition of technical measures, including the standard of proof which must be applied; the “trigger” for the imposition of such measures; and any relevant defences for service users who have taken all reasonable measures to protect their service from unauthorised use and who have not knowingly facilitated the use of their service for the purposes of infringing copyright.” Interestingly the government has already rejected proposed Lords’ amendments that covered just these things.

Right to a fair hearing

The Bill provides for provisions for appeals in codes, however the committee identifies there is little detail about the right to appeal in the case of copyright infringement reports or decisions about the inclusion of certain individuals’ information on copyright infringement lists. The committee recommends “that at a minimum, the Government must be required to confirm that the First Tier Tribunal will be able to consider whether an infringement of copyright has occurred and any defence that no infringement of a copyright holders’ rights has been committed or knowingly permitted by the account holder.”

Clause 17

The Committee has particular concerns about the new power in Clause 17 that allows for the Secretary of State to amend the Copyright, Designs and Patents Act 1988 by secondary legislation. This provision that has been the subject of much criticism, and lead to government amending the text of the clauseto limit the power and to use the special ’super-affirmative’ procedure to ensure that any proposed changes would be better scrutinised by Parliament.

The Committee remained concerned that, despite this (then promised) move that Clause 17 remains overly broad and that parliamentary scrutiny may remain inadequate, and the government should explain why parliamentary scrutiny of any relevant human rights issues will be adequate without any power for Members of either House to propose amendments to the draft order.

In essence the Committee are not yet convinced that these parts of the bill do stand up to the government’s assertion that the bill is in full complaince with the ECHR. They also highlight a fact mentioned by many of the Lords’ in recent proposed amendments - that the detail of the bill is being sidelined to codes and SI’s instead of guarantees being made in the primary legislation: a trick this government has excelled in - see the Regulation of Investigatory Powers Act for a fine example of this.

Will the government listen? Probably not. They may, at some point, sacrafice clause 17 if it looks like doing so will guarantee the bill getting on the staute books before the election. Indeed a true cynic might argue that its place in the bill in the first place is designed purely to be a bargaining chip to ensure other measures get through mostly unscathed. We shall see.

Ode to name.seo@gmail.com

Posted by scott on February 2nd, 2010

This one goes out to my good friends Coesee coetsee.seo@gmail.com ; abass abass.seo@gmail.com ; henrylow henrylow.seo@gmail.com and others who seem to like leaving endless spam comments on my blog plugging onlineuniversalwork.com – There, look. I’ve just given you free publicity in a blog post. You won.

And to show just how much you mean to me , I have written this poem to you based on your insightful comments.

Affiliate Marketing is a performance based sales technique,
I know just reading those words makes my knees go weak.
Used by companies to expand their reach into the internet at low costs,
And left as spam comments by onlineuniversalwork toss-pots

This commission based program allows affiliate marketers to place ads,
So you can learn how to spam like their moms and their dads.
On their websites or other advertising efforts such as email distribution,
we will all say ‘praise be’ for your endless spam contributions.
In exchange for payment of a small commission when a sale results,
we can all be like you, a bunch of annoying spam cunts.

Apple Lilliput release iTouch for Gulliver

Posted by scott on January 29th, 2010

Apple want me to spend around £400 to buy a giant 16GB iPod Touch. Hmmm… Yes, the iPad is nice a shiny, just like all Apple’s stuff, but what is it for exactly? When and where would I use it?

Q: Would I take it out and about with me instead of a netbook/laptop?

A: No.


Q: Would I buy it to read books?

A: No. At £400 that’s still an expensive eBook reader with a backlit screen.
Q: Is it a game changer?

A: No. The iPod was, the iPhone was, this is just a nice piece of kit.


Q: Do I want one?


A: Of course.

Bringing Taxonomy and Folksonomy Together

Posted by scott on January 29th, 2010

There is a nice straightforward article by Thomas Vander Wal on Zdnet blogs about Taxonomies.  In it he explains why - as many of us know - that withi an organisation it should not be a choice between traditional taxonomies OR social tagging/folksonomies, but that it should be an AND choice with the latter informing and feeding into the former.

The fact that a Taxonomy should be a living thing is one I have seen overlooked in companies before.

 Vander Wal uses the following table to show how by combining them each of their strengths accounts for the other’s deficiencies.

Good article. Well worth a read.

BskyB v EDS - Conclusions

Posted by scott on January 27th, 2010

For those who have not seen the judgment and just want to read the conclusions of the court, here they are: 

2322. I now summarise some of the main findings and conclusions arising from this judgment.

Provisions of the Prime Contract

2323. In relation to construction of the Entire Agreement clause at Clause 1.3.1 of the Prime Contract, this clause does not preclude SSSL from advancing a claim for negligent misrepresentation or misstatement against EDSL.

2324. Except for claims in deceit, Clause 20.2(ii) of the Prime Contract has the effect of excluding EDSL’s liability to SSSL for Call Rate Reduction benefits.

Provisions of the Letter of Agreement

2325. Paragraph 17 of the Letter of Agreement is an exclusion clause for claims for breach of the Prime Contract between EDSL and SSSL but is not an exclusion of “All known claims and all unknown claims” (in the latter case up to 17 June 2001) which SSSL could advance against EDSL on the basis of breach of contract as EDS contend.

The Memorandum of Understanding

2326. In relation to the Memorandum of Understanding, there was no separate binding agreement made by Richard Freudenstein and Steve Leonard on 6 March 2002.

2327. The Memorandum of Understanding signed on 26 March 2002 was not a legally binging agreement when it was signed. It was and was intended to be “subject to contract” and both parties envisaged a later contract which would govern the changed relationship between Sky and EDS dealing with the matters in the document. It is not possible to spell out any contractual relationship founded on conduct after 6 or 26 March 2002.

2328. As a result the Memorandum of Understanding does not give rise to any full and final settlement nor does it give rise to new warranty provisions.

Duty of Care

2329. No duty of care should be imposed upon EDSC in favour of BSkyB or SSSL or upon EDSL in favour of BSkyB which circumvents or escapes the contractual exclusion or limitation of liability which the parties put in place between EDSL and SSSL. That contractual structure negatives such duties of care and no such duties arise in this case. Any liability of EDSL to SSSL arising under a duty of care will not permit SSSL to circumvent or escape the contractual exclusion or limitation of liability provisions for the act or omission that constitutes the tort.

Misrepresentations prior to the selection of EDS and the Letter of Intent

2330. As to alleged misrepresentations as to resources made prior to the selection of EDS and the Letter of Intent: the Greater Resources Representation was not made by EDS and Sky have not established that EDS made a misrepresentation in relation to the Lesser Resources Representation or the Ready to Start Representation. Accordingly, EDS are not liable to Sky for misrepresentation as to resources.

2331. As to the alleged misrepresentations as to time prior to the selection of EDS and the Letter of Intent, EDS represented that they had carried out a proper analysis of the amount of elapsed time needed to complete the initial delivery and go-live of the contact centre and that they held the opinion that, and had reasonable grounds for holding the opinion that they could and would deliver the project within the timescales referred to in the Response. That representation was false as there was no “proper analysis” nor were there “reasonable grounds”. It was made dishonestly by Joe Galloway who knew it to be false. In making the misrepresentation, EDS intended Sky to rely on it and to select EDS for the Sky CRM Project and Sky did so.

Accordingly, EDS are liable to Sky in deceit for that misrepresentation.

2332. As to the alleged misrepresentations as to cost prior to the selection of EDS and the Letter of Intent, EDS represented that they had carried out a proper estimate of the cost of completing the project and that they held the opinion that, and had reasonable grounds for holding the opinion that, they could and would deliver the project within that budget in the Response. In putting in an estimate of some £54m in the EDS Response, EDS carried out a proper estimate of the cost of completing the project and had reasonable grounds for holding the opinion that they could and would deliver the project within that budget in the Response. Accordingly, EDS are not liable to Sky for misrepresentation in relation to cost.

2333. EDS has no liability in misrepresentation for the Proven Technology Representation or the Significant Risk Representation or the alleged misrepresentation as to methodologies.

2334. Accordingly, I find that EDS made fraudulent representations as to time both prior to the selection of EDS and the Letter of Intent but otherwise Sky’s other allegations of misrepresentation fail.

Misrepresentations prior to the Prime Contract

2335. As to the alleged misrepresentations made prior to the Prime Contract, EDS represented that they had carried out a proper analysis of the amount of elapsed time needed to complete the initial delivery and go-live of the contact centre and that they held the opinion that, and had reasonable grounds for holding the opinion that they could and would deliver the project within the timescales referred to in the Response. That representation was false as there was no “proper analysis” nor were there “reasonable grounds”. It was made dishonestly by Joe Galloway who knew it to be false. In making the misrepresentation EDS intended Sky to rely on it and to select EDS for the Sky CRM Project and Sky did so. Accordingly, EDS are liable to Sky in deceit for that misrepresentation.

Misrepresentations prior to the Letter of Agreement

2336. In relation to the allegations of misrepresentations prior to the Letter of Agreement, the statements made by EDS did amount to a representation that they had developed an achievable plan, which had been the product of proper analysis and re-planning.

EDS did not carry out a proper analysis and re-planning exercise to produce a programme which would have been achievable and the representation was false and was made negligently. The misrepresentation was a material misrepresentation which EDS intended Sky to rely upon and which Sky did rely upon in entering into the Letter of Agreement. EDSL are therefore liable to SSSL for negligent misstatement and under section 2(1) of the Misrepresentation Act 1967. Otherwise, EDS is not liable for any other misrepresentation prior to the Letter of Agreement.

Liability for misrepresentations

2337. The misrepresentations which were made prior to the selection of EDS and the Letter of Intent and also prior to the Prime Contract were only made on behalf of EDSL and not on behalf of EDSC but were made to both BSkyB and SSSL.

2338. EDSL has no liability to BSkyB for the neglegent misrepresentations made prior to the Letter of Intent, the Prime Contract or the Letter of Agreement.

Breach of the Prime Contract

2339. In relation to breach of the Prime Contract, EDS failed properly to resource the project after the Letter of Agreement; EDS were seriously in delay in carrying out the work and achieving the Milestones and delivering the Deliverables and EDS had carried out little work in the period mainly because they had failed to capture the requirements or manage that process or merely because of the general lack of progress. On that basis EDS failed to exercise reasonable skill and care or conform to good industry practice because there was no effective programme management, the design and development of the solution was not properly documented and EDS did not provide sufficient technical or managerial resources.

2340. However, neither the breaches alone nor the combination of breaches amounted to a repudiatory breach of the Prime Contract, as varied. Further, the evidence does not establish that there was an acceptance of any repudiation.

Causation

2341. In terms of causation, if EDS had not made the misrepresentations to Sky prior to the selection of EDS and the Letter of Intent, Sky would not have continued with EDS but would have engaged PwC to implement the PwC CRM System using Siebel. Sky are entitled to recover losses caused by entering into the Prime Contract on the basis of either the misrepresentations made prior to selection and the Letter of Intent or prior to the Prime Contract. PwC would have implemented the PwC CRM System with a total effort of 2794 man-months and would have achieved go-live on 1February 2003.

2342. If EDS had not made the misrepresentations to Sky prior to the Letter of Agreement, Sky would not have continued with EDS but would have engaged an Alternative Systems Integrator to continue with the CRM project and implement the ASI CRM System. An ASI would have implemented the ASI CRM System with a total effort of 4,749 man-months and would have achieved go-live on 1 February 2005. EDS are also liable for damages which represent damage for breach of the Prime Contract prior to July 2001 and I find that damages should be awarded on the basis that the wasted costs, being effort expended less useful work, are £16.3 million.

2343. Sky are entitled to damages for breach of the Prime Contract as varied by the Letter of Agreement which should be based on the costs of the effort incurred by Sky after 6 March 2002 in reaching the stage of development that EDS would have reached if they had expended the effort they had charged for in performing their obligations in accordance with their obligations under the Prime Contract as amended. On that basis the Quantum experts have agreed that the figure is £52.8m including the value of the unpaid EDS invoices or £48.8m excluding those invoices, the sum recoverable being subject to the cap under clause 20 of the Prime Contract.

Mitigation

2344. In terms of EDS’ contentions on mitigation, Sky did not fail to mitigate their loss by acting unreasonably in implementing the Actual CRM System or by de-scoping or by failing to introduce Self Service functionality at an earlier date.

Lost Business Benefits

2345. In terms of lost business benefits, the lost benefits in relation to reduction of churn rate should be assessed on the basis that the saved in practice percentages for customers who cancel (Cuscanners) should be:

(1) Home Moving: Change in Lifestyle (Home Moving): 8.1%;

(2) Value for Money: Subscription Fee Issues: 6%; Change in Financial Situation: 3%; Technical Issues (Part):10.2%; Poor Perception of Value: 9% and Contractual Account Issues (Part): 15%;

(3) Customer Service: Service Issues: 19.2% and Technical Issues (Part): 17.7%

2346. The lost benefits in relation to reduction of churn rate should be assessed on the basis that the saved in practice percentages for customers who are cancelled by the System (Syscanners) is 1.8%.

2347. In relation to the lost business benefits to be derived by a reduction in call rate (1) The benefits to be derived from Self Service by migration of calls to Self- Service should be based on 15% of Customer Service calls over some two years and on 45% of Sales Upgrade calls and 23.3% of Technical Enquiry calls being transferred to Self Service by 2011. (2) The benefits to be derived from call avoidance by root cause analysis of technical enquiries by the Actual CRM System, should be based on Simon Roncoroni’s figure of a 5% reduction in Technical Enquiry calls. (3) The benefits to be derived from an increase in First Time Resolution, should be based on a table similar to that in Simon Roncoroni’s first report at paragraph 8.40 but with figures of 95 (2000/1); 60 (2001/2); 50 (2002/3); 11 (2003/4) and 25 (2004/5) and should adopt the approach of Simon Roncoroni as to the two year period, the 60% and 40% and his approach to the B1 and B2 Scenarios.

Quantum Issues

2348. In relation to the quantum issues raised for resolution:

(1) Issue 1: The rates to be applied to determine the cost of effort expended by an ASI in Scenario B2 should be PwC’s rates in 2000 plus 10% from 1 January 2002, with an additional 2.7% increase in fees to be applied for work with effect from 1 January 2003 and again from 1 January 2004.

(2) Issue 2: General Syscanners with financial problems who are saved by the Actual CRM System should be valued on the basis of a figure of 33% of the value of a saved Cuscanner.

(3) Issue 3: The contribution of saved Cuscanners should be valued at £227.

(4) Issue 4: This issue does not arise.

(5) Issue 5: This issue does not arise.

(6) Issue 6: This issue has been resolved by EDS accepting that the Business as Usual Call Rates from 2008/09 to 2010/11 are assumed to be the same as in 2007/08.

(7) Issue 7: There should be no adjustment in relation to the three heads of adjustment where EDS say that there are no supporting documents; where EDS say that maintenance costs appear excessive or where EDS say costs relate to assets acquired after March 2006.

(8) Issue 8: In assessing what maintenance and operating costs Sky would have incurred in relation to the PwC CRM System, it should be assumed that PwC’s estimate was comprehensive in that it covered all maintenance and support activities, including those activities which, in practice, in relation to the Actual CRM System, Sky has carried out using internal resources.

(9) Issue 9: On my findings as to timing, it is not correct to assume that there would have been an abortive training session such as that arranged in October 2004.

(10) Issue 10: This issue has been resolved by EDS accepting that Simon Roncoroni’s estimate of Average Call Handling Time (“AVHT”) for 2007/8 should be applied and that no adjustment is to be made to Simon Roncoroni’s estimates of future AVHT.

(11) Issue 11: There should not be any adjustments in respect of the calculations of loss of benefit in respect of self-service for sales upgrades to take account of the fact that Self Service for certain sales upgrades was available via the web prior to March 2006.

Reservation

2349 As set out above various quantum issues still have to be determined including the impact of tax, discounting and interest, together with the Counterclaim and the effect of the cap. To the extent that further issues or clarification are required for the quantum experts to deal with the detail of quantum then I reserve those matters to a later decision once the relevant matters have been identified. I also reserve the question of EDSC’s liability under the Deed of Guarantee for later determination.

Postscript

2350 On any view this was a case which involved complex issues ranging over a wide variety of topics. The case involved hundreds of bundles and thousands of documents. Over a period of 10 months there were 109 hearing days, including submissions, witness and expert evidence. I would wish to thank counsel and solicitors for the way in which they conducted the proceedings. I have been much assisted in the preparation of this judgment by the detailed expert evidence and by the written and hyperlinked submissions which were provided by the parties. I would also like to thank the court staff who ensured that proceedings ran smoothly, including sitting late or early on occasions to ensure witnesses completed their evidence in accordance with the timetable.

Facebook, Disputes, and Jurisdiction

Posted by scott on January 25th, 2010

The always insightful Eric Goldman comments on jurisdiction in a case between Daniel Miller, the creator of online flash game ‘Boomshine’ and Facebook. Miller – a Facebook user – has gone after Facebook - in addition to Yao Wei Yeo who he accuses of producing a game / Facebook app ChainRxn, that violates his “look and feel” copyright in Boomshine - for its role in providing access to the app.

Miller wanted the case heard in Georgia, the Court instead agreed to Facebook’s request that it be heard in California, as asserted under the terms and conditions of the Facebook user agreement.
As Goldman points out, what makes this interesting is that the Judge decided that Miller’s complaint about another app – which is nothing to do with his use of the service - is covered by Facebook’s general forum selection clause, which purports to govern “any dispute about or involving the Web site and/or the Service.” As Goldman says, “Read literally, this court seems to be saying that all 350M Facebook users are required to sue Facebook in Facebook’s home court for any claim they may have that relates to Facebook.com.”

Ofcom ‘minded’ to allow BBC to encrypt HD output via the EPG

Posted by scott on January 22nd, 2010

Ofcom is consulting on a request by the BBC to amend to its digital multiplex licence (Multiplex B), to allow the BBC to restrict the availability of programme listing information for HDTV services only to digital receivers (digi-boxes) that implement content management technology.

The BBC first punted this idea back in September 2009 and was sent packing by Ofcom who told it – following a lot on negative response from a first consultation – that it needed more information about why this would be good for consumers if it were to stand any chance of approval.

It seems to have worked.

Ofcom states that it is now minded to approve the request finding that content management is a justified objective and that the ability to restrict the availability of EPG data to receivers which implement content management, represents the most appropriate means for securing the benefits of a wider range of HD content for citizens and consumers. The proposals also call licence holders for Multiplexes C and D, which carry a similar requirement to Multiplex B to provide EPG data in an open format, be also granted a similar licence amendment to allow EPG data to be broadcast in a closed format.

Before allowing the BBC to broadcast EPG data in a closed format under a licence amendment, Ofcom would require that the BBC implements: commitments to establishing an “appeals” process whereby viewers who believe their lawful usage is being impinged by the BBC’s use of content management can raise their concerns to the BBC; to work with the other public service broadcasters to create a ‘user friendly’ consumer guide to content management; to facilitate discussions between broadcasters, manufacturers, relevant industry bodies and consumer groups to develop and implement a good practice framework for the use of content management on the HD Freeview platform; and to give an undertaking that it will respect current usage protections under copyright law and any future extension of these protections, such as those recommended by the Gower’s Review of Intellectual Property – such as format shifting.

So what would this mean in practice?

Under the BBC’s proposals, broadcasters would be allowed to allocate one of three content management states to individual HD programmes:

Unrestricted copy: the digital receiver output is unencrypted and unrestricted copies of HD content can be made onto any digital device. There are no restrictions imposed on internet distribution.

Multiple copy: the digital receiver output is encrypted and unrestricted copies of the content can be made onto digital devices that are compatible with the copy management technology. Internet distribution is not permitted.

Managed copy: the digital receiver output is encrypted and only one copy of the content can be made onto a DVR and one external digital device which is compatible with the copy management technology. Internet distribution is not permitted

In all three content management states:

  • HDCP is applied to the HD display output on receivers;
  • No restrictions are placed on consumer recordings of HD programmes onto integrated Digital Video Recorders;
  • No restrictions are placed on down converted SD versions of HD content;
  • No restrictions are placed on the number of times copies HD content can be accessed and period of time it can be stored for.
  • Ofcom’s current intention is also to make a requirement of the BBC being able to broadcast EPG data in a closed format under a licence amendment, that the free to air HD broadcasters on Multiplex B must only apply the minimum level of content management needed to secure content from rights holders.

    This sounds good , but if the minimum level of content management that all broadcaster demand is ‘Managed Copy’ then that will be the minimum level of content management needed to secure content from rights holders – so, this is a fairly worthless statement.

    Ofcom is clear that that content management cannot be applied to Standard Definition (SD) content, or HD content that has been converted down to SD, and that no restrictions are placed on the recording of HD content onto an DVR which is integrated with a receiver.

    For digi-box/receiver manufactures what this means it that they would have to sign licensing deals with the BBC to gain access to Huffman Code look-up tables, to be able to ’see’ the HD content. This will be licensed on a royalty-free basis and on fair, reasonable and non-discriminatory (FRND) terms to any party who undertakes to comply with the content management standards agreed and specified by the Digital TV Group (DTG), and the BBC will be only be able to require content management technologies in receivers that form part of the DTG specification

    Why the whole idea should be binned.

    It’s all about piracy, right? Just as it was when DRM was stuck on CDs - and that worked SO well. Rights holders don’t want their HD content appearing online (unless they put it there of course) hence why ‘Internet distribution is not permitted.’ In the only option above that rights holder would choose. Very nice. The reality is that if someone want to put your content online on a bit-torrent site they will, and it only takes one person to do it. What this proposal does is wastes time and money for no net benefit to the consumer – nor in reality the rights holder – all for the sake of what exactly?

    Also, when you look at, for example the Multiple Copy and Managed Copy options what is are “digital devices that are compatible with the copy management technology” ? Is a blank DVD covered by this? Is an iPod? Or are we, as I suspect, just going to do things that piss off the consumer?

    The Rights Holders may say, look most people just want to record something and maybe watch in on a mobile digital device or burn a copy to disc – we’re not going to stop them doing that (although I’m sure they want to stop you doing either of these things), but if they say this – which could fit the description of ‘Managed Copy’ – the questions would be, well, they can already do that now. If that’s what the average person is going to do, then you don’t need any of this DRM in place at all. If instead you’re after the few who will burn off and sell or upload to the internet and share, then they’re going to do that whether or not your output is encrypted or not.

    DRM applied in this way is, as it has been every time it has been applied, is a means of saying ‘we are going to treat you all like you’re potential criminals. …because that’s how we like to think of your our valued customers.’ This proposal is merely the latest example of it.

    Sadly it is now a done deal. Once Ofcom is ‘minded’ it means it has ‘decided’.

    Just the Ticket

    Posted by scott on January 21st, 2010

    Why I love buying Concert tickets and why you should always look on more than one site.

    Today I was looking at an upcoming gig and on Ticketmaster the price for 2 tickets was quoted as £16.50 each (inc booking fee etc). On See Tickets the same tickets were £15.75 each (in booking fee) but with an additional charge of £2.25 as a transaction fee for any order.

    So, a total of £33 on Ticketmaster and £33.75 on See Tickets.

    So, I bought the tickets from Ticketmaster, right?

    WRONG.

    What I had not yet mentioned was the £5.25 additional charge by Ticketmaster for sending the tickets to you by secure mail – their only delivery option: no box office pick up or eTicket or unsecure mail option. No postage charge on See Tickets, so the actual totals for the two tickets on both sites are:

    Ticketmaster: £38.25
    See Tickets: £33.75

    As an aside, the face value of the tickets is £13 each, which means Ticketmaster is just shy of charging you for a third ticket to buy just two.

    Anyone remember the days when you could buy at the box office and pay the price it actually says on the ticket? …

    Court’s decison in BskyB ITV shareholding case interesting for media plurality interpretation

    Posted by scott on January 21st, 2010

    The High Court has dismissed BSkyB’s appeal against rulings by the Competition Commission (CC) and the Secretary of State, as upheld by the Competition Appeal Tribunal (CAT), that directed BskyB to decrease its 17.9% shareholding in ITV to below 7.5%. The court did disagree with the CAT’s conclusion as to media plurality, reinstates the CC conclusion on that point, and suggests now that possible difficulties in applying section 58(2C) and section 58A(5) of the Enterprise Act 2002 have been identified, that the government should look to amend the legislation accordingly.

    The Court identified that the key issue on media plurality turns on the correct view of the interaction between section 58(2C) and section 58A(5) of the Enterprise Act 2002 , and in particular on the meaning of the phrase, not defined in the Act, “sufficient plurality of persons with control of … media enterprises” in section 58(2C)(a).

    58A(5)
    (5) For the purposes of section 58, where two or more media enterprises—
    (a) would fall to be treated as under common ownership or common control for the purposes of section 26, or
    (b) are otherwise in the same ownership or under the same control,
    they shall be treated (subject to subsection (4)) as all under the control of only one person.
    58(2C)

    (2C) The following are specified in this section—
    (a) the need, in relation to every different audience in the United Kingdom or in a particular area or locality of the United Kingdom, for there to be a sufficient plurality of persons with control of the media enterprises serving that audience;
    (b) the need for the availability throughout the United Kingdom of a wide range of broadcasting which (taken as a whole) is both of high quality and calculated to appeal to a wide variety of tastes and interests; and
    (c) the need for persons carrying on media enterprises, and for those with control of such enterprises, to have a genuine commitment to the attainment in relation to broadcasting of the standards objectives set out in section 319 of the Communications Act 2003.

    It concluded:

    “[I]t seems to us that the Commission was correct to hold that, whereas in reckoning the number of controllers of media enterprises for the purposes of section 58(2C)(a) only one controller is to be counted in respect of both or all of the relevant enterprises (here Sky and ITV), nevertheless, when it comes to assessing the plurality of the aggregate number of relevant controllers and to considering the sufficiency of that plurality, the Commission may, and should, take into account the actual extent of the control exercised and exercisable over a relevant enterprise by another, whether it is a case of deemed control resulting from material influence under section 26 or rather one of actual common ownership or control. It does not seem right to us to read the artificial effect of section 58A(5), in a case within paragraph (a), as extending farther than is necessary and clearly required by that provision. This reading of the subsection puts it in the same category as section 58A(4), being ancillary to the provisions of section 58. It applies to the calculation of the number of controllers, both as regards the merged or merging enterprises and as regards any others serving the relevant audience. On the other hand, it does not allow the provision to have an overriding effect, excluding a consideration of the limited extent (if it be the case) of any control actually exercised or exercisable by a controlling enterprise over another enterprise, in the course of the qualitative assessment which is required on an investigation by the Commission in relation to the particular public interest consideration identified in section 58(2C)(a).
    In relation to the concern expressed by the Tribunal about the possibility of an increase in the level of control or influence without a new RMS arising, so that the merger control provisions would not apply (referred to at paragraph [103] above), on the one hand that possibility does not appear to exist in the present case because of the application to Sky of the 20/20 rule (see paragraph [44] above) and on the other hand, in a case in which that possibility does or might exist, the Commission would be entitled to take it into account when considering the sufficiency of the plurality of the controllers as matters stand following the RMS.
    It seems to us unsatisfactory that the terms of the Act should have been open to the conflicting interpretations placed on it by the Commission and the Tribunal. If it were thought that to limit the deeming effect to one of number alone does not allow for sufficient protection of the sensitive interest of media plurality, it should not be difficult to amend the legislation accordingly, now that possible difficulties in applying the current legislation have been identified. ”

    The court notes that whilst this does not affect the outcome of the present case, it may be of relevance in future. The Court refused BskyB permission to appeal to the Supreme Court on one point as regards the rejection of a possible alternative remedy, but noted that ity remains open to BskyB to apply to the Supreme Court itself for such permission to appeal.

    Are Creation Spaces KM’s Future?

    Posted by scott on January 20th, 2010

    “most knowledge managers lost sight of the fact that the real value is in creating new knowledge, rather than simply “managing” existing knowledge.”

    Interesting article on the Harvard Business Review blog by John Hagel III and John Seely Brown (Deloitte) entitled “A Better Way to Manage Knowledge

    They explore the idea of ‘creation spaces’ (and looked at how people work together and pool knowledge in World of Warcraft, for example) and why these and not traditional KM systems are the best way to leverage knowledge.

    Their view is summed up by the following quote: “Knowledge management systems desperately try to persuade participants to invest time and effort to contribute existing knowledge with the vague and long-term promise that they themselves might eventually derive value from the contributions of others. In contrast, creation spaces focus on providing immediate value to participants in terms of helping them tackle difficult performance challenges while at the same time reducing the effort required to capture and disseminate the knowledge created.”

    An interesting idea, and one which I feel has a lot of merit; however it also seems to be throwing up an either / or option that shouldn’t exist. Surely the true value is created by having both creation spaces and also a method for capturing the output of those spaces as well as any ‘existing knowledge’. I sound like a broken record on this but as I have said many time before, in relation to Law Firms, knowledge is what we sell – we don’t sell law. A case in point , we have examples of agreements/licences that have long been out of date in relation to UK law, but suddenly become gold dust when dealing with emerging market companies starting to go through similar processes that the UK did 20 years ago etc – I’m not convinced a creation space would capture this, whereas the boring old KM system did and has.

    Anyway, the article is well worth a read.


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