Copyright, 2000-2005 1 IP Business Models for the TAFE Sector Roger Clarke Chair, AEShareNet Limited Xamax Consultancy, Canberra & Visiting Professor at

Copyright,2000-2005 1

IP Business Models for the TAFE Sector

Roger Clarke Chair, AEShareNet Limited

Xamax Consultancy, Canberra& Visiting Professor at the A.N.U., the Uni. of Hong Kong

and the Cyberspace Law & Policy Centre, U.N.S.W.

http://www.anu.edu.au/people/Roger.Clarke/ ...... /EC/IPBusTAFE-0509 {.html, .ppt}

TAFE Development Centre, Melbourne20 September 2005

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.


IP Business Models for the TAFE SectorAgenda

1. Contemporary Realities2. What’s a Business Model3. Intellectual Property Business Models

• Outdated Proprietary BMs• Proprietary BMs for the Modern Era• Open, Sharing BMs

4. Choosing Between Proprietary and Open5. Implementing an IP Business Model


1. Contemporary Realities

• The Digital Era• Atoms ==>> Bits

• Internet / Cyberspace• Bits go anywhere

• Peer-to-Peer (P2P)• Bits go everywhere

• Interactive Publishing• Bits get used


Peer-to-Peer (P2P)

• “P2P is class of applications that take advantage of resources (storage, processing capacity, content, human presence) available at the edge of the Internet”

• Each participating program is both Client and Serverand hence each workstation is a host as well, e.g.

• your music playstation can be a mixer too• your PDA can host part of a music catalogue• your PC can host part of a music repository


P2P ArchitectureCooperative Use of Resources at the

Edge

Server & Client

inWorkstation

Server & Client

inWorkstation


Conventional Publishing, 1450-1995

The PublishingIndustry Value-Chain

Parts of the PublishingIndustry Value-Chain

Desk-Top Publishing, 1985-20..


Electronic Publishing, 1990-20..

Cross-Media Publishing, 1998-20..

FormatConversion


Interactive 'ePublishing', 1995-2095

TheHoney

Pot

'Bees Around a Honey-Pot'


2. What’s an eBusiness

Model?

It’s an Answer to the Question:

Who Pays?

For What?

To Whom?

And Why?


3A. The Outdated Proprietary IP Business Model

• Exploit the Monopoly through High Prices

• Leverage the Monopoly

• Extend the Brand• Cross-Promote

• Sustain the Monopoly• Very Constrained

Licensing• Technological

Protections

• Lawsuits to stop, and to chill, behaviour:

• Commercial Violations

• Single-Purpose Technologies

• Incitement (‘Authorisation’)

• Multiply-Usable Technologies

• Consumption


Avenues of Music Industry Fightback

• Political• Copyright Expansionism• Criminalisation / Cost Transfer

• Legal• Lawsuits• Publicity

• Technological• Digital Rights Management• Reduction of the Power at the Edges


3B. A Sustainable Proprietary Approachfor the Music Industry

• Identify price resistance-points in the various customer-segments i.e. ‘what the market will bear’

• Set prices accordingly (and hence sustain payment morality)

• Make backlists and new releases available via for-fee P2P channels

• Discourage and prosecute breaches where the purpose is commercial

• Take no action over breaches by consumers (esp. time-shifting, format-change, even sharing?)

The Evidence• Since 2003,

Apple iTunes charges USD 0.99/track!?

• Copyright-Owners get USD 0.70

• In 2005, they’re asking for more


3C. Open, Sharing IP Business Models

WHO PAYS? For What? To Whom? And Why?

• Customers, for the Good/ServiceDistribution

• Customers, for Complementary Goods/ServicesConsultancy, Training, Installation, Customisation, Integration, Audit

• Providers

• Third Parties


Who Pays? Sometimes, a Fairy Godmother

• SubsidyFunding from ‘external’ sourcesDeprecated as a gift, unless ‘market failure’

• Cross-SubsidyFunding from ‘internal’ sourcesDeprecated, claimed to be ‘distortive’

• Portfolio ApproachMutual Cross-Funding from ‘internal’ sourcesHow business works – ‘cash cows’ fund the rest


Who Pays? FOR WHAT? To Whom? And Why?

• Goods & Services• Value-Added

Goods & Services• Complementary

Goods & Services• Infrastructure• After-Sales Service

• Data• Information• Expertise / Knowledge

• An Idea in Good Standing• Timeliness• Quality


Who Pays? For What? TO WHOM? And Why?

Direct Intermediated• Retailer• Franchisee• Value-Adder• Bundler• Transaction

Aggregator


Who Pays? For What? To Whom? AND WHY?

• Resource Control• Switching Costs

(capture, lock-in)• Perceived Value• Cost Advantage• Quality Advantage


Key Lessons about Open Content

• Reciprocity is of several kinds:• direct and immediate• indirect and/or deferred

Barter / Exchanges may be open communities, or closed communities

• Reputation is central

• Resources from Complementary Servicesand from ‘Fairy Godmothers’


4. Criteria for Selecting Between‘Modern Proprietary’ and ‘Open,

Sharing’

‘Modern Proprietary’ is a tenable model, provided that a number of conditions hold:

• a pure for-profit corporation, with shareholders, who are expecting ROI

• customers expect to pay full price• the organisation has unique competency,

market leadership and/or high reputation• the materials require significant

investment


5. Pre-Conditions for Any IP Business

• Inbound Materials Clearance• Check Material Sources• Acquire Licences for ©

Materials• Productisation

• Defined • Discrete• Deliverable • Dependable

• Appropriate Copyright Licence


Open Content Licensing Choices• Ownership

• Exclusivity• Sub-Licensing

• Integrity Protection• Entirety• Copyright Notice

• Reproduction Control• Permission• Use(s) / User(s)

• Republishing Control• Permission• Use(s) / User(s)• Format(s)/Media• Incorporation• Tech. Protections

• Adaptation Control• Permission• Review• Distinguishability• Copyright Vesting

• Usage• Territory • Purposes• Person-Types• Fields of Endeavour

• Liability Management• Warranties• Indemnities

• Pricing• One-Time Fees• Repetitive Fees


Categories of Creative Commons Licence

http://creativecommons.org/licenses/, .../license/

QuickTime™ and aTIFF (LZW) decompressor


QuickTime™ and aTIFF (LZW) decompressor



Categories of AEShareNet Licence

QuickTime™ and aTIFF (LZW) decompressorare needed to see this picture.






INSTANT LICENCES

End-user – E

MEDIATED LICENCES

Commercial – C

Free for Education – FFE

Unlocked Content – U

Share and Return – S

Preserve Integrity – P



Roger Clarke Chair, AEShareNet Limited

Xamax Consultancy, Canberra& Visiting Professor at the A.N.U., the Uni. of Hong Kong

and the Cyberspace Law & Policy Centre, U.N.S.W.


TAFE Development Centre, Melbourne20 September 2005

QuickTime™ and aTIFF (Uncompressed) decompressor


QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.




1. Contemporary Realities2. What’s a Business Model3. Intellectual Property Business Models

• Outdated Proprietary BMs• Proprietary BMs for the Modern Era• Open, Sharing BMs

4. Choosing Between Proprietary and Open5. Implementing an IP Business Model

Documents

Copyright, 2000-2005 1 IP Business Models for the TAFE Sector Roger Clarke Chair, AEShareNet Limited Xamax Consultancy, Canberra & Visiting Professor at