A Framework for Evaluating Digital Rights Management Proposals

In this paper, we analyze the strengths and weaknesses of the various solutions to compensate intellectual property rights holders. Specifically we look at digital rights management (DRM) based systems, extensions to DRM to support fair uses, monitor-and-charge schemes, compulsory licensing schemes and alternative business models. Our main contribution is to provide a framework from which current and future proposals may be evaluated. In order to realistically evaluate any compensation scheme, we suggest that the following questions are important to ask: • Is the proposal technically feasible? • What are the incentives to circumvent legal and technical protections for all parties in the transaction? • What is the burden of monitoring for compliance in the system, and on which parties does this burden fall? • What is the efficiency of the collection and distribution of funds from consumers to rights holders? • What are the impacts on user privacy and fair use? • What is the feasibility of legal enforcement, both domestically and internationally?