Out-Law / Your Daily Need-To-Know

The global trade association for the mobile market has expressed discontent with the licensing terms for the Digital Rights Management (DRM) standard that content producers were hoping would protect their works against piracy among users.

The GSM Association (GSMA), which represents 650 operator members serving more than 1.25 billion customers across 210 countries and territories, said last week that it would undertake immediate review of alternative DRM solutions.Its concern is the current licensing programme proposed by the MPEG Licensing Authority and others who own relevant patents, including Sony and Philips, for use of the Open Mobile Alliance's (OMA) DRM 1.0 standard.Speaking on behalf of the GSMA's Board, CEO Rob Conway described the regime as "impractical, excessive and short-sighted."MPEG LA proposed a 'per device' fee – which GSMA members call unreasonable and excessive; and a 'per transaction' fee – which they describe as unworkable.Craig Ehrlich, Chairman of the GSMA, said operators would have no option but to take their own routes toward implementing proprietary DRM solutions. However, while such solutions may have lower licensing costs, they would ultimately introduce problems for customers when roaming, changing networks or exchanging content with other users.Therefore, the GSMA Board has begun a review of all credible alternative DRM solutions and their license conditions on the market today, so that a recommendation can be made to the Board and the membership as to those solutions that best meet the needs of the market, industry and consumers.The GSMA is inviting proposals from all DRM solution providers by 11th April 2005.

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