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Genero Initiative Nuug

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The controversy surrounding Copyright has intensified the last year, and there is little indication that it will subside. The digital genie is out of the bottle, and the new economic paradigm surrounding abundance is replacing that of scarcity. Artists and creators fear the future, and ask themselves "How can I make money if anyone can get my stuff for free?"...

Genero is a new distribution and monetization mechanism under development by FriBit, and it is highly relevant for anyone who would like to explore how to make money on creative works in the future.

The presentation is not intended to be used standalone, but accompanies the presentation. NUUG filmed the presentation and it will be made available soon

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Genero Initiative Nuug

  1. 1. By Øystein B. Jakobsen 10.08.2009
  2. 2. Agenda <ul><li>Introduction to the Copyright debate </li></ul><ul><li>Conventional distribution models </li></ul><ul><li>The Genero distribution model </li></ul><ul><li>The economy of abundance </li></ul>
  3. 3. Introducing Copyright <ul><li>None </li></ul><ul><li>Statute of Anne 1709 </li></ul><ul><li>US Constitution 1790 </li></ul><ul><li>Bern convention 1886 </li></ul><ul><li>Recent developments </li></ul><ul><ul><li>” Mickey Mouse Forever” </li></ul></ul><ul><ul><li>Copyright on Software </li></ul></ul><ul><ul><li>” Works for Hire” </li></ul></ul><ul><ul><li>ACTA </li></ul></ul><ul><ul><li>Patents on methods and biology </li></ul></ul>
  4. 4. “ ..I say to you that the VCR is to the American film producer and the American public as the Boston strangler is to the woman home alone.”
  5. 5. Introducing Copyleft <ul><li>Free Software Foundation </li></ul><ul><li>Open Source Initiative </li></ul><ul><li>Creative Commons </li></ul><ul><li>Wikimedia </li></ul><ul><li>… </li></ul>
  6. 8. What is FriBit? <ul><li>Norwegian Non-profit membership organisation </li></ul><ul><li>Desires to bring balance to a heated Copyright debate </li></ul><ul><li>Purpose: </li></ul><ul><ul><li>To maximise public access to knowledge and culture </li></ul></ul><ul><ul><li>Strengthen the principles of privacy, due process of law, non-censorship and free communication </li></ul></ul>
  7. 9. Conventional distribution model Copyright owner User Distributor User User Copyright owner Copyright owner
  8. 10. Example: Warner User Copyright owner MSN Music User User Warner store Warner music Copyright owner Copyright owner iTunes
  9. 11. Example: Apple Copyright owner User User User iPod iTunes iPhone Apple TV Copyright owner Copyright owner
  10. 12. Example: Nokia User User User N96 OVI N95 N… Copyright owner Copyright owner Copyright owner
  11. 13. Problems with conventional distribution models <ul><li>Vertical integration </li></ul><ul><li>Bilateral agreements </li></ul><ul><li>Common interest groups </li></ul><ul><li>Complicated permission regime </li></ul><ul><li>High risk </li></ul><ul><li>No consumer rights </li></ul><ul><li>Constant lawsuits </li></ul><ul><li>Damages the Internet </li></ul>Less competition Inefficient Unhappy customer base
  12. 14. Needs analysis <ul><li>Creator </li></ul><ul><li>Incentive </li></ul><ul><ul><li>Expression </li></ul></ul><ul><ul><li>Needs fullfillment </li></ul></ul><ul><ul><li>Recognition </li></ul></ul><ul><ul><li>Monetary </li></ul></ul><ul><li>Means of production </li></ul><ul><ul><li>Tools & equipment </li></ul></ul><ul><ul><li>Parent works </li></ul></ul><ul><ul><li>Assistance </li></ul></ul><ul><ul><li>Funding </li></ul></ul><ul><li>Means of distribution </li></ul><ul><ul><li>Connect demand & supply </li></ul></ul><ul><ul><li>Create demand </li></ul></ul><ul><li>Audience </li></ul><ul><li>Availability </li></ul><ul><li>Selection </li></ul><ul><li>Relevance (not ”quality”) </li></ul><ul><li>Low price </li></ul><ul><li>Share with peers </li></ul><ul><li>… </li></ul>
  13. 15. Guidelines for Genero <ul><li>No exclusive rights for anyone </li></ul><ul><ul><li>Anyone can become a distributor or aggregator as long as they play by the rules </li></ul></ul><ul><ul><li>Anyone can create derivative works as long as they share even </li></ul></ul><ul><li>Trust based </li></ul><ul><ul><li>Enforcement of rules, attributions etc is based on trust systems. If the community deems you to be a non-trusted fellow, your content or channel will be marked as such and avoided </li></ul></ul><ul><ul><li>No lawsuits - Genero will be managed by norm and community rather than lawyers </li></ul></ul><ul><li>Distributed </li></ul><ul><ul><li>Similar to the architecture of the Internet – No centre, other than standardization bodies that are as neutral as possible </li></ul></ul><ul><li>Content independent </li></ul><ul><ul><li>Can be used for any kind of material that can be represented in a digital form. Examples include movies, tv-series, books, music, pictures, software etc </li></ul></ul><ul><li>Location and technology independent </li></ul><ul><ul><li>Can be used in any manner of ways in any kind of locations – All content will be available to all distributors equally </li></ul></ul><ul><li>Entirely API based </li></ul><ul><ul><li>All access to Genero registries are based on API’s. Creating entries, accessing entries, downloading content etc will all be available through API’s </li></ul></ul>
  14. 16. High level overview <ul><li>User </li></ul><ul><ul><li>The audience </li></ul></ul><ul><li>Distributor </li></ul><ul><ul><li>Facilitates content access for the user </li></ul></ul><ul><li>Registry </li></ul><ul><ul><li>Stores content registry posts with all details </li></ul></ul><ul><li>Aggregator </li></ul><ul><ul><li>Facilitates the registration and monetization process towards content owner </li></ul></ul><ul><li>Copyright owner </li></ul><ul><ul><li>Owns the rights to creative works </li></ul></ul>Copyright owner User Copyright owner Copyright owner User User Aggregator Distributor Distributor Aggregator Registry
  15. 17. Example roles Writer User Public Library Registry Musician Painter User User Internet Archive FreeArt.com MSN music store Registration Co.
  16. 18. Eksempel of use John Walsh Peter: Reads the book for free on his PC Public Library Registry Walter: Buys the paperback FreeBooks.com HardPop Writers Guild $ 5 $ 20 free John’s chosen licence sais digital copies are free, if you publish a paper book give me 5 bucks
  17. 19. File transfers between aggregator and distributor Aggregator Distributor Registry <ul><li>Registry creates an index based on content in its registry and in federated registries </li></ul><ul><li>Transfers index and deltas twice a day </li></ul><ul><li>Transfers index and deltas twice a day. Index is just to alleviate searches towards registry </li></ul><ul><li>Files are shared. Aggregator would be permanent seed </li></ul><ul><li>Distributor downloads content based on manual selection and policy from index. Probably the torrent files is not stored, but fetched on request </li></ul>
  18. 20. Genero licence <ul><li>General terms </li></ul><ul><ul><li>No DRM </li></ul></ul><ul><ul><li>Open formats </li></ul></ul><ul><ul><li>Non-exclusive addition to a free licence </li></ul></ul><ul><ul><li>Is limited to use within the Genero system </li></ul></ul><ul><ul><li>No endorsement </li></ul></ul><ul><li>Derivative works </li></ul><ul><ul><li>No creative restriction other than no commercial endorsement </li></ul></ul><ul><ul><li>Attribution </li></ul></ul><ul><ul><ul><li>Credit according to medium </li></ul></ul></ul><ul><ul><ul><li>Provide link to parent works </li></ul></ul></ul><ul><ul><ul><li>Revenue share with parent works </li></ul></ul></ul><ul><li>Business terms </li></ul><ul><ul><li>A distributor is free to distribute Genero registered stuff, as long as he adheres to the business terms. Copyright holder can configure terms himself, or apply predefined sets </li></ul></ul><ul><ul><li>Distributors can filter on compatible works depending on business model and target base </li></ul></ul>
  19. 21. Genero Initiative <ul><li>Standards organisation to maintain the Genero system </li></ul><ul><li>Comparable to a mix of ICANN, W3C and CC </li></ul><ul><li>Defines the Registry behaviour </li></ul><ul><ul><li>API and data formats </li></ul></ul><ul><ul><li>Inter-registry compatibility </li></ul></ul><ul><li>Rules for distributors and aggregators </li></ul><ul><ul><li>No vertical integration, eg. Cannot hold Genero Copyrights </li></ul></ul><ul><li>Maintains the Genero licence </li></ul><ul><li>Maintains the Attribution guidelines </li></ul><ul><li>Provide support functions </li></ul><ul><ul><li>Legal support for both Genero actors and Genero licencees </li></ul></ul><ul><ul><li>Payment support (GPP standards) </li></ul></ul>
  20. 22. Example entry Aggregator Registry Content owner Metadata: Author: John Glenn Copyright owner: John Glenn Content category: Music Tags: reggae, jazz, fuzzpop Content type:Music album Licence: CC-BY-NC-SA ++ Genero Content type: Music album Content category: flac song01.flac.torrent song02.flac.torrent Content category: Source song01.midi.torrent song02.midi.torrent Content category: Misc music.video.avi.torrent cover.front.jpg.torrent cover.back.jpg.torrent storplakat.jpg.torrent Monetization distribution: Author- John Glenn: 75% Aggregator- SuperPublish: 10% Sampled- Peter sellers: 8% Sampled- Kent: 5% Sampled- Stingy: 2% Business terms UnitCost: 0 RevShare: 30% Broadcast: TONO
  21. 23. <ul><li>The public registry approves registrars and distributors </li></ul><ul><ul><li>Can be any company, but must abide by the rules regarding copyright, payment etc </li></ul></ul>Registrar and Distributor signing Content owner User Distributor Aggregator Content registry
  22. 24. <ul><li>Content is produced </li></ul><ul><ul><li>Music, movies, TV-series, photos, books, plays etc </li></ul></ul><ul><ul><li>Initially intended for media content, but works equally well for games, applications and other intellectual property </li></ul></ul><ul><li>Licence decicions </li></ul><ul><ul><li>Content producer can make any kind of 3rd party agreement, including sale or revenue-sharing of licenses </li></ul></ul>Content production and licencing Content owner Aggregator User Distributor Content registry
  23. 25. <ul><li>Content owner registers with the public registry </li></ul><ul><ul><li>Done through approved registrars, much like domain names </li></ul></ul><ul><ul><li>Content owner provides a copy to the Aggrgator </li></ul></ul>Content registration Content owner Aggregator User Distributor Content registry
  24. 26. <ul><li>Distributor accesses registry </li></ul><ul><ul><li>Finds new content in the content registry the distributor wishes to publish </li></ul></ul><ul><li>Retrieves a copy </li></ul><ul><ul><li>Using P2P. Must provide a seed as long as the work is for sale </li></ul></ul>Registrar to distributor publication Content owner User Distributor Aggregator Content registry
  25. 27. <ul><li>Content is distributed </li></ul><ul><ul><li>The distributor can have any system he likes, use any business model etc – as long as he adheres to the business terms. </li></ul></ul>Content distribution Content owner Aggregator User Distributor Content registry
  26. 28. <ul><li>The distributor pays for the content </li></ul><ul><ul><li>The Distributor pays to a Genero Payment Provider, which in turn pais each aggregator (manager) </li></ul></ul>Distributor owner payment User Distributor Copyright owner Aggregator Content registry Copyright owner Copyright owner Aggregator GPP $ $ $ $ $ $
  27. 29. Steam as an example <ul><li>Focus on the user experience </li></ul><ul><li>Gives the user high degree of functionality and rights </li></ul><ul><li>Stimulates 3rd party development on their products </li></ul><ul><li>Is the best distributor of their own content, thus competing with piracy instead of fighting it </li></ul><ul><li>Result: Very competitive against other distribution channels, including pirate channels </li></ul>
  28. 33. The Economy of abundance <ul><li>Long tail </li></ul><ul><li>Wikinomics </li></ul><ul><li>Moores law </li></ul><ul><ul><li>Accellerated by Cloud Computing </li></ul></ul><ul><li>The Law of supply and demand </li></ul>