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IPR-Case Study
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E-Commerce Economic Essay

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During past decades, it has been seen that most of the economies are moving towards capitalist economies, but now the trend has transformed its pace and it has taken turn to move to the new

interpreted as resulting from a confluence of a capitalist economy and a knowledge or

information economy in which intellectual capital (Non Tangible Capitalized Assets) in some sense is dominant. This industry, these days especially, has become the most important and vital

for all the developed economies, on the whole, because this is the most growing and feasible

industry; as it has highest potential for growth both domestically and internationally, as well. The

issues related to creation, use, and distribution of the digital content through e-commerce channels.

Intellectual Capital needs Intellectual Property Rights (IPRs), to motivate and secure the return of the person behind the innovation of the product or producing a valuable document or coming up with amusing sound tracks. The argument goes with the discussion that intellectual property

are representation of our culture so they restrict the flow of sharing the culture (Article 2). On the contrary, it is argued that IPRs are the baseline for motivating the individuals to come up with

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the innovative products and hence they contribute to the well being of whole of the society in the form of growth and newer technologies (Article 2).

This issue is apart, initially the main problem is discussed which is the protection of this industry and safety from the malpractices which surpass the security barriers and misuse or steal the material from online libraries or wherever they are stored (Form: B2C or B2B). This has been done with the use of technology, as technology provides opportunities for convenience and growth, at the same time it also pose threats because new technology brings new methods of malpractice with it. The Digital media in the form of still images, video, sound, and multimedia shows potential for growth and improvements in their use because of higher enhance human machine interaction in almost all the form of business. E-commerce (B2C and B2B) channels

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rights are causing harm to the society as a whole because they restrict the flow of products which

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Intellectual capital industry, with its highest growth prospects, is also prone to many important

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system which is intellectual capitalism. In broad terms, intellectual capitalism (Article 2) can be

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have become a primary distribution channel for the digital media market, which in turn has seen a dramatic growth in the last few years or so (Article 2). Keeping in view the growth and challenges of Intellectual Capital market, the international intellectual property alliance

to US$1.5 billion, and in the record and music industries amounting to US$2.3 billion for the financial year of 2003 (IPR, 2005). It is also worth discussing that a large portion of Internet

bandwidth (approximately 30%) is consumed by users exchanging illegal copies of digital media (Article 2).

as safety measures of the intellectual capital from all malpractice activities and it is worth to discuss the safety procedures here (Article 1). Two major categories of IPR protection are: copy prevention and copy detection. Copy prevention methods include software techniques such as cryptography, password authentication, and physical media protection techniques such as CD/DVD copy prevention systems. Copy detection methods, such as digital watermarking are becoming extremely popular (Article 2). They do not directly avert theft but rather discourage it

management in e-business such as digital rights management (DRM) systems have been proposed for the efficient and complete protection of digital content and management of licenses

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throughout its lifecycle (Article 2).

The protection techniques for different aspects are shown in a figure of the article which is shown below; through the pyramid whole of the procedure of protection is described and which comprises of whole of the DRM process of Intellectual Property Protection. According to this table the first stage self protecting level comes then metadata protection that includes MPEG1 and MPEG2. At the third stage it takes us to the level of the watermarking in which data hiding is used. The fourth level emphasizes upon the encryption level of the digital signatures and the hash functions. At the final stage and in the bottom the physical level comes that means the CD, DVD and other physical equipment protections.

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by supporting detection of stolen copyrighted material. Complete solutions to IPR protection and

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To save the market and materialize the challenges in the form of profits, IPRs has been emerging

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estimated the annual loss of revenue in the U.S. motion picture industry due to piracy amounting

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The initial stage of pyramid is associated with the IPR protection techniques associated with the storage mediums. Next level is related to encryption techniques; here the digital signature of hash functions or both of the techniques are used for data security and protection. Next level is

most reliable, efficient and convenient to use. Next level is the metadata level; it is relatively new

method to overcome the problems related to the protection of data having protection rights to be protected. The final stage on the pyramid is the self protecting level of the content (Article 2).

This includes special logic and it offers solution for ever increasing problem of immature economy. All of the methods on the pyramid collaborate to offer an effective solution for the

protection of digital content available on internet and accessible by almost everyone in the world. (Article 1)

Digital Rights Management Systems (DRM)

A new and complete system to protect the content online, offers opportunities and a complete solution set to manage IPR (Article 2). The benefit of this system is that it can be used with the software a company uses to manage its online selling business, so the DRM system integrates with the current corporate system easily offering opportunities for growth and increasing efficiency. This is also very cost effective because to implement this software, there is no need for process reengineering, current system is well integrated and the software costs less; payments

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for the software are paid according to the usage of the service like the content which is saved for the company, instigate cost savings of the company in the form of saved content misuse and steal of the product available online, further distribute costs for the usage of the software; the cost incurred for safety is minimal compared to the costs and misuse saved.

DRM woks as independent software, because the DRM service provider authority gets the data from the company to be sold on net and then takes on the responsibility of safety and proper distribution with the usage of tailored business model. According to Rossenbalt (2002), explained in the Article 2, there are two major definitions of DRM systems: one encompasses the encryption techniques mainly, which is referred as narrow technique, and the other one is

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data hiding level which is the most important because the relevant technique of watermarking is

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broader one which extends to the rights management by using the techniques shown above in the pyramid.

The relatively new technique related to the image processing is also seen as a perfect solution for

images and videos related content on the web (Article 1). This can be used to stop the illegal

attempts to access the digital content available on net. Sometimes watermarks are visible to the

humans and sometimes they are hidden and not brought on screen but the software confirms its

Security is naturally one of the main concerns of each company in a decision to adopt DRM system. There is no DRM system which can offer perfect security from the misuse and

for more and higher costs. Some technologies either prevent the illegal use and other the reuse of digital Content, so total protection is a challenge most of the time with the usage of one selective technology keeping in view the cost constrains (Article 2).

Watermarks offering the advantage by offering multiple watermarks which run check more than once, but they are not always reliable alone. It is necessary to work with other procedures, and

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(Article 1,2).

companies business model must adapt and check for durability. The major problem with security and protection is related to the deadlock, when a fake watermark is inserted and it becomes difficult to track the true ownership (Article 2).

The extensive growth of digital media usage has offered a lot of challenges for security

problems, related to distribution and sales, most of the time. This need has given birth to the extensive need of the development of new security methods, which extensively adapt to the current business model and reduce the costs to its optimum level. The major challenges are offered in the B2C model, where human interaction is more frequent than B2B, thats why companies are more concerned about the source and reliability of the model and software used

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malpractice of the content available online, especially because of the reason that perfection asks

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authentic source and access the site which initiates the illegal usage.

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Digital Watermarking: A promising solution

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References:
Article 1:

Rick Carnes & Coley Hudgins, (August 2009), COPYRIGHT IS CRUCIAL FOR CULTURE; Strong Intellectual-Property Rights Have Helped The Arts And The Economy, Nielsen Business Media.

Article 2:

Bill Vassiliadis & Vassilis Fotopoulos, (2007), IPR Protection for digital media distribution: Trends and solutions in the E-Business domain, Hellenic Open University, Greece.

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