Secure Digital Music Initiative
Creating
a Digital Music
Marketplace
What SDMI is:
• A multi-industry forum to develop a voluntary
open framework for playing, storing and
distributing digital music to enable a new
market to emerge.
• A forum for dialogue
Who has been involved?
• Broad multi-industry participation
• Over 120 companies and organizations blue-chips, start-ups, record companies,
Internet companies, software companies,
consumer electronics companies …..
SDMI Participants
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4C Entity
Adaptec
AEI Music/PlayMedia
America Online
Aris Technologies
AT&T
Audible, Inc.
Audio Explosion
Audio Matrix
Audio Soft
Audiohighway.com
Aureal Semiconductor
SDMI Participants
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BMG Entertainment
Bose
Breaker Technology
Canadian Audiotrack
Casio
CD World
CDDB
CDuctive.com
Channelware
Cinram International
Compaq
Comverse Info Systems
SDMI Participants
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Creative Technologies
Dentsu
Deutsche Telekom
Diamond Multimedia
Digimarc
Digital On-Demand
Digital River
Digital Theater Systems
DIVX
Dolby Laboratories
EMI Recorded Music
Encoding.com
SDMI Participants
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Enso Audio Imaging
Fraunhofer IIS
General Instrument
GoodNoise
Hewlett Packard
Hitachi
HMV Group
I2GO.COM
IGUIDE
Infineon
InterTrust Technologies
Intervu
SDMI Participants
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IOMEGA
J. River
J VWeb
Kent Ridge Digital Labs
Lexar Media
LG Electronics
Liquid Audio
Lucent Technologies
M. Ken
Macro Vision
MAGEX at NatWest
Matsushita
SDMI Participants
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MCOS
Memory
Media Fair
Mediamatics
MCY Music World
Micronas Semiconductors
Microsoft
Multimedia Archives & Retrieval Systems
MusicMarc
Nippon Telegraphic & Telephone
Nokia UK
NTT Mobile Communications Network
SDMI Participants
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Packard Bell NEC
Philips
Pioneer
Plug ‘n Pay Technologies
Portal Player
Pricewaterhouse Coopers
QDesign
QPICT
RealNetworks
Rights Exchange
RPK Security
Saehan Information Systems
SDMI Participants
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Sanyo North America
Seca on behalf of Canal Plus
Sharp
Softlock Services
Solana Technology Development
Sonic Solutions
Samsung Electronics
SanDisk Corporation
Sonopress (BMG Storage Media)
Sony
Sony Music Entertainment
SpectraNet Communications - ThrottleBox
SDMI Participants
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Sphere Multimedia Technologies
ST&Hilo, a subsidiary of Telefonica
STMicroelectronics
Sun Microsystems
Supertracks
TDK Electronics
Telian
Texas Instruments
The Mitsubishi
The Music Connection
Thomson Consumer Electronics
Tokyo Electron Device
SDMI Participants
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Toshiba Corporation
Touch Tunes Digital Jukebox
Universal Music Group
Victor Co. of Japan
Warner Music Group
Wave Systems
Waveless Radio Consortium
WavePhore
Xerox
Yamaha
The Path to SDMI
• 1970’s: Tape recorders
• 1980’s: DAT
• 1990’s:
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CD-R; CD-RW
Recordable DVD
Storage capacity
Small, portable, removable hard drives
Flash memory devices
MP3 files
Confrontation to Collaboration
• Legal rights difficult to enforce
• Need for technological solution
• Need for collaboration to allow a legitimate
market to emerge
Benefits of Collaboration
• New business models for music usage can
develop
• New products and services can be created to
support these new uses
• Consumers gain
– easier access
– to more music
– in new, more enjoyable ways
Pirate markets benefit no one
• Piracy-based markets are short-term only;
consumer frustration hurts everyone
• If content loses value, technology driver is
lost
• Lost opportunity for e-commerce
Legitimate markets benefit everyone
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Easy access to music
Easy to acquire
Quality sound
New ways to use music
Interoperable devices
Legitimate markets benefit everyone
• Companies that make products
• Artists who make music
• Consumers who want both
Goals of SDMI
• To secure music in all forms, across all
delivery channels
• Brand music with indelible markings, at the
source
• Identifiers and usage rights data travel with
music
• All devices read and act on data in
predictable ways.
SDMI is commercially motivated
• Not intended to reinvent
• Intended to build on what has already
been achieved and what is already
available in the market
Short term need: Portable Devices
• Customer demand
• Technology partners eager to join that
market
• Internet could otherwise turn into a
permanent haven for pirated music
• Therefore, portable device issue had to
be addressed on a very fast track
SDMI on concurrent tracks
• Short term needs requiring prompt
resolution: Portable devices on a fast
track
• Long term objective: Meta-level
architecture
SDMI’s Launch
• February 26, 1999
• Executive Director - Leonardo Chiariglione
– Chair of MPEG
• Portable Device Working Group
– Immediately tasked with focusing on Portable
Devices
– Jack Lacy, Chair
– Met June 30, 1998 deadline for initial Portable
Device Specification
Portable Device Specification
Version 1.0
• Adopted June 28, 1999
• Released July 13, 1999, after technical
review
• Publicly available, along with overview and
FAQ, at www.sdmi.org
SDMI- Framework, Not Format
• No intent to select a
compression
technology (MP3,
AAC, MSAudio, etc).
• No intent to select an
encryption technology.
• Reasons:
– Technology is
continually developing
and will improve.
– Encourage innovation
and competition.
– Allow maximum
flexibility.
– Allow market to
choose the best
formats.
PD Specification Covers
• Application
– Program that manages import of content, music
libraries, playback and rights management
• Portable Device (PD)
– Device that stores protected content and plays it back
• Portable Media (PM)
– Media that stores protected content
• Licensed Compliant Module (LCM)
– Interfaces and/or translates communications between
LCMs and PDs/PMs
Core Principles
• SDMI components must respect any “usage
rules” - which describe how the content can
be used - that may come in the content in
the future.
– Any artist, band or record label that chooses to permit
unlimited copying will have that option.
– Any artist, band or record label that chooses to limit
copying of an original will have that option.
– This is a general principle for future application (e.g.
electronically distributed music), not current product.
Core Principles
• Any content to be used in an SDMI Portable
Device must be protected at all times after it has
been imported into the SDMI domain.
• Subsequent storage, use within, or transfer
between SDMI components must be done in a
manner that protects the content.
Core Principles
• Content must be bound to a Portable Device or
Portable Media.
– This ensures that a copy on a PD or PM will not
become the source for additional copies.
– This does not limit consumer usage because consumers
can make copies for any device they choose - and as
many devices as they need - and portable media can be
transferred among compatible devices.
Core Principles
SDMI components will accept both protected and
unprotected music, e.g. MP3 files.
– Unknown, unprotected music will be converted
into SDMI content and stored in protected
form.
– Music from unknown sources (garage bands,
church choirs) will not be excluded.
Core Principles
• Legacy content (music
on existing CDs) will
not be technologically
protected.
• Reasons:
- Effective protection is
not possible.
- Technological
impediments would
merely be minor speed
bumps to copying.
- Necessary in order to
permit church choirs and
garage bands to use
SDMI.
- Respects privacy rights.
Core Principles
• Future content (music on future CDs, DVD-A and
EMD) must be protected against Internet piracy.
– Mechanism for protection yet to be determined.
– One way this could be done is through a Dual
Watermark System.
• Robust watermark - will not degrade when compressed.
• Fragile watermark - will disappear when compressed.
• All music from unknown source passes through screen in
SDMI application. Screen only permits in content that either
has both marks or no marks.
Core Principles
• Personal copying of CDs is permitted;
Internet distribution without authorization is
prevented.
• Where “usage rules” are not found, SDMI
components will only make 4 copies from
every rip from the original. This allows
personal copying - as much as necessary but impedes piracy.
Core Principles
• SDMI technology must be robust.
– Security mechanisms must achieve certain
requirements.
– Tamper resistance in both software and
hardware.
– Content must be protected whenever exposed.
Implementation
• Devices to develop in 2 phases.
• 1st Phase
– Screen music for a signal - time to upgrade to
become a 2nd Generation device.
• 2nd Phase
– Dual Watermark or other system
– Only upgraded phase 2 devices will play future
releases.
Compliance with the Standard
• Compliance is a condition of obtaining a
trademark license to use an SDMI mark.
• Compliance is a condition of obtaining a
technology license for the Aris/4C
watermark.
Marketing Efforts
• Logo and Tagline for SDMI Compliant
products.
Expectations
• Some manufacturers have already
announced plans for SDMI compliant
products, and they should begin coming to
market by January, 2000.
• Goal and expectation is that SDMI
compliant products will overtake noncompliant products within a few years.
Announcements to Date
• Portable Devices
– Diamond, Creative, Matsushita (Panasonic),
Toshiba, Mitsubishi, Lucent, Sanyo, Philips,
Sony, Thomson (RCA), Audiovox
• Portable Media
– Texas Instruments, QDesign, Iomega, SanDisk,
Matsushita, Toshiba
Announcements to Date
• Software
– Microsoft, Intertrust, Reciprocal, WAVE,
MusicMarc, Liquid Audio, Fraunhaufer,
NatWest
• Content
– BMG, EMI, Sony, Universal, Warner,
Rock.com
Future of SDMI - What’s Next?
• Develop Functional Requirements
• Issue Call for Proposals for implementation
technologies
• Develop specifications
SDMI has already achieved goals
• Need for secure distribution accepted
• Provided forum for dealmaking
• Proved technology and content companies
can work together
• Launched legitimate market for digital
music
Secure Digital Music Initiative