Before Copyright A Multi Media Rights Clearance System for the Protection of Intellectual Contributions in a Collaborative Networked Multimedia Title Development Environment Before Copyright Contents Page 1. Scope and Objectives 3 2. Consortium and Roles of Participants 4 3. Technology Developed and Work Carried Out 4 4. Results 4 5. Obstacles 5 6. Dissemination of Results 5 7. Plans for Commercial Exploitation 6 8. Generic issues/Suggestions for Community Initiatives 8 BC Before Copyright This document describes a pilot developed by CAM srl of Turin and EURITIS GROUPE GEMPLUS of Marseille and validated by the INFO2000 Programme of the European Commission (DG Information Society) in October 2000. 1. Scope and Objectives To enhance development quality and time-to-market of new media content. BC - Before Copyright aims at the protection of creative contributions in a collaborative networked multimedia title development environment. Its goal is the construction of a complete and reliable one-stop shop for all types of rights deals (with particular emphasis on screenplays, linear and non-linear plots, dialogues, serial “bibles”, character design, navigation charts and storyboards) related to development and acquisition of new media content in the audio visual industry and electronic publishing, to be licensed for on- and off-line indirect distribution. The crucial phase of development-and-acquisition includes conception and structuring of projects (“titles”), search for co-production partners, production of demos, search for distributors, reviewing, localised trials, pre-production packaging. All these activities take place before an ISBN or ISAN number is available and must be executed in a practical, friendly, and secure manner. The BC technology is composed of a set of exclusive tools for media content development, including ethical-legal, collaborative, editorial, and transactional models and procedures for media content developers, and a prototype for an original software product (the BC Notary System), based on shared common assumptions between professionals and experts from different countries. The BC “Notary System”, specified, engineered, and tested during the project, is a prototype software system for secured recording of transactions and contributions in a collaborative networked multimedia title development environment (remote brainstorming, rewriting, co-authoring, pitching and surveying). The BC technology makes available a trusted environment for collaboration and rights trade, where a plurality of actors in different countries can develop new content under flexible option agreements, while enjoying full respect for each intellectual contribution. In fact, the system records and retrieves in a secure way each contribution the principal producer receives, testifying for each file uploaded. Paternity (i.e. who is the author) Anteriority (i.e. the date of upload) Authenticity (i.e. that no changes were made after the upload) Knowledge given (i.e. the identity of the persons who had knowledge) Equally useful to producers and authors is the fact that the editorial procedures supported by the system favour effective transnational co-production, high quality, faster time-to-market – thanks to traceable services in the editorial, legal, marketing, and financial areas. All flows take place online between/among authorised and certainly recognisable users. 2. Consortium and Roles of Participants The BC consortium is composed of two synergistic entities: The co-ordinator, CAM (Italy) is a networked company composed of 25 medium- and small-sized audio-visual producers and interactive content developers. Besides defining user requirements, CAM has acted as client of the engineering action, organiser of user awareness, and field-trial and dissemination agent. The partner, EURITIS (France) which during the project life cycle was acquired by Gemplus, is specialised in the Information Retrieval and IPR domains, and has acted as provider of engineering and technical expertise. These two actors have collaborated as national leaders in their respective countries for the DeveloperNet Interreg II I-F project, a networked development agency of 30+ French and Italian content production companies, aimed at establishing the basic tools for tele-collaboration, e-commerce, editorial and technical quality, and legal advice. The DeveloperNet network, which received the Trophée des Téléactivités 2000 from France Telecom in March 2000, has been realising the one-stop shop the BC Consortium has aimed at through the implementation of the BC results. 3. Technology Developed and Work Carried Out Tools: Ethical, Contractual, Editorial, Quality, Business procedures developed during 11 workshops where experts, scholars, and professionals simulated the network activity. These tools, which include model contracts, networked editorial traceable procedures, and traceable business flows, are meant to favour – with the best use of the system – the highest quality in development and total factor productivity. Prototype for the BC “Notary System” software: specified, engineered, and tested during the project. The system reflects the assumptions shared during the expertise work groups. The system is currently under further development and engineering. The BC technology has a potential impact on productivity across the economic world. Fine-tuned for media content materials, the BC technology has already received significant expression of interests for the application in the development of titles for university presses, for inter-university collaboration in development of educational materials. Its transferability to other fields – such as those of advertising, fashion, music, journalism, and software – is expected because of the speeding up of total factor productivity the BC technology implies. The BC technology allows media business to reorganise their production process. It brings together rights trade and management and horizontal services for its users, with the result of generating increased product quality, convenience, customer service – as well as cost savings. The services (editorial, quality, legal, and financial) introduce both significant improvements in the title-development processes of each user company and economies of scale in acquiring them. The development process itself, taking place in a secure environment, allows a wider use of open options which are more cost-effective than writing contracts and facilitate the aggregation of co-producers with additional authors. The traceability of all contributions strengthens credibility with the financial partners. The overall result of the BC technology gives thus way to a systematic enhancement of the search for co-producers and international distributors before production, while improving product quality, time savings, transparency on rights, and general convenience. The other rights market places, which arose during the BC pilot phase, do not deliver any service for development; their only goal (with the exception of the German Script House, (www.scripthouse.de), acting as an intermediary between authors and producers in an environment where IPR protection is unavailable) is that of establishing first contacts between rights sellers and buyers. Thus they do not introduce any improving measures for product quality, security, and work environment. The implementation of the BC technology contributes to improve the Information Society. BC can manifest two orders of positive impact on society. By facilitating European co-production and by improving content development, it is useful for the production of higher quality content. If we consider the human resources that take part in development, we also see that their way of working improves results thanks to a more transparent and equitable environment. 4. Results The BC technology - coupled with the legal, editorial, quality, and commercial services activated during the pilot phase – has a potential for offering an unequalled environment to authors and producers from all countries. The networked SMEs who promoted the BC project are currently engaged, with other companies from four major European countries, in the further development of this technology. A new European consortium, CREA Net, inherited the BC knowledge and is currently engaged in its enhancement and dissemination. 5. 6. Obstacles Difficulty in obtaining venture capital on SME media content industry – resolved through programmed transformation of company structure and use of the BC technology as an asset. Difficulty in acculturation among SMEs – resolved by intensive awareness and simulation seminars held during project life cycle and programmed afterwards. Difficulty in managing a shared-cost project – helped by additional effort in practising consortium collaboration in terms of client/supplier relationship. Technical problems due to late arrival of machines for the DeveloperNet testbed – led to more intensive effort during last months of the project life-cycle. Dissemination of Results At the start of the project, we had just bi-national relationships. Now we are working with Italian, French, Spanish, British, German, and Canadian producers and authors. We have also opened negotiations in Eastern Europe. BC was present at all the most important media markets and festivals of the last two years. Hundreds of professionals from all around the world got in touch with the project and some of its content. However, when we perceived that our dissemination activities were contributing precious information and criteria to competitors, we decided to be more selective in our communication strategy and are now working at the establishment of a corporation able to offer the first service of this kind in Europe and Canada. 7. Plans for Commercial Exploitation Exploitation of the BC technology is based on two priorities: the direct industrial use of the BC technology to generate an international content development agency; and the licensing of said technology to other industrial users. The BC project was realised from a proposal made thirty months ago, which in its turn was based on a theme expounded upon five years ago, on the creation of a networked agency, based on Internet protocol and dedicated to content development for European co-production. * Claudio Papalia, Agenzia a Rete per lo Sviluppo di Nuovi Titoli, an essay published in the quarterly MultiMedia, Edizioni Sonda, Torino, n° 23, March 1996 The core of the project consists of a bundle of networked software + tools for the development of media content, operating on the IP. The business model proposed is that of business-to-business among producers, co-producers, broadcasters and distributors from different countries. The geographic extension of the network, initially binational, has now a prospect of soon becoming pan-European. The financial structure of the network is expected to evolve, from the shared-cost project led by a consortium limited company, toward a European corporation with a share of venture capital and finally aimed at going public. The general trend registered during the last thirty months, and particularly in the more recent period, confirms the exploitation presuppositions of the project. ‘Media content’ is a phrase that currently includes film, TV programmes, electronic books, some Internet sites, digital discs, etc. Just a couple of years ago both those from the cinema industry and the interactive content production used to feel as if they were working in two different worlds; now the BC unifying approach is ripe for wide acceptance. At the start of the BC project, the overall trend for e-commerce seemed to privilege the business-to-consumer initiatives. Business-to-business e-commerce to link buyers and content developers along the supply chain without transforming each producer into a distributor was, and is, the BC model based on fees and royalties. Electronic b-to-b now finds a more adequate terrain for being understood and financed. Its advantages in terms of reduction in the cost of information input, procurement, distribution of services – and in terms of improved transparency and efficiency in the management of the supply chain – are much more proven now than two years ago. Agreement between CAM and EURITIS/GEMPLUS about the exploitation of the BC Technology The agreement foresees “to equitably share the intellectual property of all the results of the BC project.” Specifically, “it is agreed that each partner, when commercially exploiting the results of the project in a single mode, will mention the contribution of the second partner,” and that “both partners agree to continue to bring the results of the BC project as a common background to the CREA Net project,” an RTD project recently started under the IST programme of the EU. The exploitation strategy of the BC technology is thus based on the combination of: Commercial exploitation from the end of the project life cycle Further technology development in a new RTD project. Operational lines proposed at the end of the pilot project (Autumn 2000) The BC exploitation strategy is based on the synergy generated by changes of organisational structure and IT investments. By Autumn 2001 User contracts 1st and 2nd generation (first generation being the current testbed, and second generation the imminent inclusion of the prospective partners gathered during the pilot cycle) Venture Capital, Company evolution (Corporate company, common stock issued to investors) Users expansion, EU and Canada Licensing to other sectors Transfer to RTD, in parallel (CREA Net project, IST Programe of the EU) By summer 2002 Further Users expansion, 3rd generation + RTD partners (increase of the network value in line with the square of the number of users) Start of joint exploitation (BC + CREA Net results) New Venture capital, New Company evolution Licensing to other sectors By spring 2003 8. Going public Generic issues/Suggestions for Community Initiatives Many B2B virtual rights shops arose in these months, particularly in the US (Goodstory.com, Rightsworld.com, Rightscenter.com, Subrights.com – this last one had a brief existence in 2000). Though at the moment they do not offer some of the cuttingedge services that BC features, they received prompter investments. If shared-cost procedures were changed in such a way that a direct investment policy, with more substantial collaboration and fewer “deliverables”, would be implemented, European competitiveness in innovation would emerge strengthened. The capital aid should follow three essential criteria: timeliness, control from inside the Board, a client/supplier type relationship between coordinator and partners. We hope that the EC will allow alternative forms of aid to innovation. March 2001 Claudio Papalia Supervisor of the BC project on behalf of the Coordinator, CAM s.r.l. of Turin