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   Digital Rights Management - DRM

Rights management is a process of organization, access control and assignment of authorized uses (rights) of content. Rights management may involve the control of physical access to information, identity validation (authentication), service authorization, media protection (encryption) and usage monitoring (enforcement). Rights management systems are typically incorporated or integrated with other systems such as content management system, billing systems, and royalty management.

Rights management systems are an implementation of the business and operations aspects of rights management. The rights managed by rights management systems can be affected by legal rights, transactional rights and implicit rights. Legal rights are actions that are authorized to be performed by individuals or companies that are specified by governments or agencies of governments. Transactional rights are actions or procedures that are authorized to be performed by individuals or companies that granted as the result of a transaction or event. An example of a transactional right is the authorization to read and use a book after it is purchased in a bookstore. Implicit rights are actions or procedures that are authorized to be performed based on the medium, format or type of use of media or a product.

Rights management systems are typically setup to protect intellectual property and to assist in the valuation and collection of fees for the sale of rights of the intellectual property. Intellectual property is intellect that has been converted into some form of value. Intellectual property may be represented in a variety of forms and the copying, transfer and use of the intellect may be protected or restricted. 

Property in a rights management system requires an identification and description of property items. The owner or manager of these property items then assigns rights to specific property items. Rights transactions occur when users are given specific rights to use the content. The rights management system may perform or assist in the collection of license fees or royalties. Various monitoring tools may be used to ensure authorized usage of content and to ensure revenues are collected.

This figure  shows a rights management system. This diagram shows that a rights management system oversees the identification and management of intellectual property items (content), rights assignments, rights transactions, licensing fees and usage monitoring (enforcement). This diagram shows that a rights management system oversees how content owners can provide access for content to users and how to convert and ensure the usage of content is converted into value for the content owner.

Rights Management System Diagram

The transfer of rights of intellectual property from a content owner to a content user or distributor may involve the use of a formal agreement (e.g. a publishing agreement) or it may occur through an action (e.g. a customer buying a book)

A content owner is a person or company that owns the rights to intellectual property (content). Rights users can be a person, company, or group that receives, processes or takes some form of action on services or products. 

Rights may be transferred by the owner of the content or by an agent. A licensor is a company or person who authorizes specific uses or rights for the use of technology, products or services. An agent is a person or a device that performs tasks for the benefit of someone or some other device. 

When rights are given for the use of content, the rights owner is called a licensee. A licensee is the holder of license that permits the user to operate a product or use a service. In the television industry, a licensee is usually the company or person who has been given permission to provide (e.g. broadcast) a particular program or service within a geographic area.

The assignment or transfer of rights may be formalized in a written rights agreement or it may occur as the result of some action such as the purchase of an item (such as the sale of a book) which transfers rights to the owner (such as the right to read, loan or destroy the book purchased). An agent may be used to assign and transfer rights. The types of rights that may be assigned include visual, audio, smell or other forms that can communicate information about intellectual property. Usage may be in the form of rendering, transferring or manipulating (changing) the intellectual property. 

When rights are transferred, there is usually some form of tangible compensation defined in license terms such as licensing fees or royalties. License terms are the specific requirements and processes that must be followed as part of a licensing term agreement. Royalties are compensation for the assignment or use of intellectual property rights. 

Content owners may be able to have exclusive rights to their content restricting its licensing to specific people or companies or content owners may be forced to license specific types of content to various types of users (compulsory licensing)

Compulsory licensing is the requirement imposed by a governing body that forces a holder of intellectual property (e.g. a patent) to allow others to use, make or sell a product, service or content. Compulsory licensing usually requires the user of the intellectual property (licensee) to pay the owner (licensor) a reasonable license fee along with non-discriminatory terms. 

When products require the use of multiple technologies or forms of intellectual property, the owners of the intellectual property may group together to form a collective licensing system. A collective licensing system is a process that allows a collective group of technologies or intellectual property to be licensed as a complete group instead of identifying and negotiating licenses for each part separately.

The specific rights that are assigned during a rights transaction is detailed in a rights specification. Rights specification defines the ability to render (display), transport (copy and send) and derive (modify or use portions) for a specific content item.

When the transfer of rights involves the use of content, it is called a content transaction. Content transactions can range from simple one time use of content (such as viewing a movie) to the complete transfer of content rights (the sale of content rights to a publisher).

   Related Digital Rights Management - DRM Terms

   Digital Rights Management - DRM Books

more details

Introduction to Digital Rights Management - DRM Digital rights management systems identify, track, authorize and restrict access to digital media. You will learn how DRM systems help to protect and enforce copyrights, patents, trademarks, and other forms of intellectual property. Discover how to uniquely identify digital media and how to monitor and track the usage of digital media. $19.99 Printed, $16.99 eBook

 

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