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, Melbourne
20 September 2005
Copyright,
2000-2005
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IP Business Models for the TAFE Sector
Agenda
1. Contemporary Realities
2. What’s a Business Model
3. Intellectual Property Business Models
• Outdated Proprietary BMs
• Proprietary BMs for the Modern Era
• Open, Sharing BMs
4. Choosing Between Proprietary and Open
5. Implementing an IP Business Model
Copyright,
2000-2005
2
1.
Copyright,
2000-2005
Contemporary Realities
•
The Digital Era
• Atoms ==>> Bits
•
Internet / Cyberspace
• Bits go anywhere
•
Peer-to-Peer (P2P)
• Bits go everywhere
•
Interactive Publishing
• Bits get used
3
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
Server
and 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
Copyright,
• your PC can host part of a music repository
2000-2005
4
P2P Architecture
Cooperative Use of Resources at the Edge
Copyright,
2000-2005
5
Conventional Publishing, 1450-1995
Desk-Top Publishing, 1985-20..
Copyright,
2000-2005
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Electronic Publishing, 1990-20..
Cross-Media Publishing, 1998-20..
Copyright,
2000-2005
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Interactive 'ePublishing', 1995-2095
Copyright,
2000-2005
'Bees Around a Honey-Pot'
8
2. What’s an eBusiness
Model?
It’s an Answer to the Question:
Who Pays?
For What?
To Whom?
And Why?
Copyright,
2000-2005
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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 The Outdated Proprietary IP Business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
Copyright,
2000-2005
•
Lawsuits to stop, and
to chill, behaviour:
•
Commercial
Violations
•
Single-Purpose
Technologies
•
Incitement
(‘Authorisation’)
•
Multiply-Usable
Technologies
•
Consumption
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Avenues of Music Industry Fightback
•
•
•
Copyright,
2000-2005
Political
• Copyright Expansionism
• Criminalisation / Cost Transfer
Legal
• Lawsuits
• Publicity
Technological
• Digital Rights Management
• Reduction of the Power at the Edges
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3B. A Sustainable Proprietary Approach
for 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?)
Copyright,
2000-2005
The Evidence
•
Since 2003, Apple
iTunes charges
USD 0.99/track!?
•
Copyright-Owners
get USD 0.70
•
In 2005, they’re
asking for more
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3C. Open, Sharing IP Business Models
WHO PAYS? For What? To Whom? And Why?
•
Customers, for the Good/Service
Distribution
•
Customers, for
Complementary Goods/Services
Consultancy, Training, Installation,
Customisation, Integration, Audit
Copyright,
2000-2005
•
Providers
•
Third Parties
13
Who Pays? Sometimes, a Fairy Godmother
•
•
•
Copyright,
2000-2005
Subsidy
Funding from ‘external’ sources
Deprecated as a gift, unless ‘market failure’
Cross-Subsidy
Funding from ‘internal’ sources
Deprecated, claimed to be ‘distortive’
Portfolio Approach
Mutual Cross-Funding from ‘internal’ sources
How business works – ‘cash cows’ fund the rest
14
Who Pays? FOR WHAT? To Whom? And Why?
•
•
•
•
•
Goods & Services
Value-Added
Goods & Services
Complementary
Goods & Services
Infrastructure
After-Sales Service
Copyright,
2000-2005
•
•
•
•
•
•
Data
Information
Expertise / Knowledge
An Idea in Good Standing
Timeliness
Quality
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Who Pays? For What? TO WHOM? And Why?
Direct
Copyright,
2000-2005
Intermediated
• Retailer
• Franchisee
• Value-Adder
• Bundler
• Transaction
Aggregator
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Who Pays? For What? To Whom? AND
WHY?
•
•
•
•
•
Copyright,
2000-2005
Resource Control
Switching Costs
(capture, lock-in)
Perceived Value
Cost Advantage
Quality Advantage
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Key Lessons about Open Content
Copyright,
2000-2005
•
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
Services
and from ‘Fairy Godmothers’
18
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
Copyright,
2000-2005
19
5.
Pre-Conditions for Any IP Business
•
•
•
Copyright,
2000-2005
Inbound Materials Clearance
• Check Material Sources
• Acquire Licences for © Materials
Productisation
• Defined
• Discrete
• Deliverable
• Dependable
Appropriate Copyright Licence
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Open Content Licensing Choices
•
•
•
•
Copyright,
2000-2005
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
21
Categories of Creative Commons Licence
http://creativecommons.org/licenses/, .../license/
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Copyright,
2000-2005
QuickTime™ and a
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Categories of AEShareNet Licence
INSTANT LICENCES
Free for Education – FFE
Unlocked Content – U
Share and Return – S
Preserve Integrity – P
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2000-2005
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MEDIATED LICENCES
Commercial – C
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End-user – E
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Quick Time™a nd a
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23
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, Melbourne
20 September 2005
Copyright,
2000-2005
QuickTi me™ and a
T IFF (Uncom pressed) decom pressor
are needed to see t his pict ure.
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
24
IP Business Models for the TAFE Sector
http://www.anu.edu.au/people/Roger.Clarke/ ...
... /EC/IPBusTAFE-0509 {.html, .ppt}
1. Contemporary Realities
2. What’s a Business Model
3. Intellectual Property Business Models
• Outdated Proprietary BMs
• Proprietary BMs for the Modern Era
• Open, Sharing BMs
4. Choosing Between Proprietary and Open
5. Implementing an IP Business Model
Copyright,
2000-2005
25