The Federation of Indian Chambers of Commerce and Industry (Ficci) is pushing for the adoption of an 'efficient' digital rights management (DRM) system, saying that this would give 'a fillip to the fast-growing Indian digital entertainment and media industry'.

Ficci and professional services firm PriceWaterhouseCoopers conducted a study on the Indian entertainment and media industry and Friday released their report 'Entertainment and Media: India Going Digital' here to coincide with the start of the International Film Festival of India (IFFI).

The report called for an efficient DRM system 'that allows management and protection of digital content'. It added that it was the 'need of the hour' for India to have 'technology-agnostic, forward-looking and robust regulatory policies balanced with self-regulation and cross-industry agreements'.

DRM is an umbrella term that refers to access-control technologies used by publishers and copyright holders to limit the use of digital media or devices. It may also refer to restrictions associated with specific instances of digital works or devices.

DRM is sometimes seen as a controversial issue. Advocates argue it is necessary for copyright holders to prevent unauthorised duplication of their work to ensure continued revenue streams.

However, critics say copyright holders use DRM to restrict use of copyrighted material in ways not included in the statutory, common law, or constitutional grant of exclusive commercial use to them. Some have likened DRM schemes to anti-competitive practices.

Ficci officials said the study showed the rise of digital media threw up issues that 'Indian stakeholders need to take cognisance of'.

'Among these, copyright issues are the foremost which impact exploitation of digital content across new media. Technology issues, especially those relating to inter-operability of equipments and devices at consumer premises are also to be dealt with,' said Ficci's media coordinator Taresh Arora.

Digital piracy, though at a nascent stage, will also be a challenge for Indian stakeholders with the proliferation of digital media, Arora argued while stressing the need for a DRM system.

FICCI admitted that there would be a price to pay for the introduction of DRM systems.

'An issue for content providers and distributors is the degree to which they utilize DRM software to control distribution. DRM restricts the ability of consumers to copy and distribute products. The benefit to content providers is that DRM limits unauthorised distribution. There is also a cost.

'Restrictions on usage, which include the inability of content downloaded on one device to play on another, can discourage some consumers from buying product through legitimate channels. Companies are grappling with this trade-off,' the report said.

Although technical controls on the reproduction and use of software have been used since the 1970s, the term DRM has come to primarily mean the use of these measures to control copyrightable artistic content. Some say DRM technologies could enable publishers to enforce access policies that not only prevent copyright violations, but also prevent legal fair use.

DRM is mostly used in the entertainment industry -- film and recording -- but has been deployed in other situations as well, like in online music stores.

In the US, the Digital Millennium Copyright Act (DMCA) is an extension to the country's copyright law passed unanimously in May 1998, which criminalizes the production and dissemination of technology that allows users to circumvent technical copy-restriction methods.

The law says circumvention of a technological measure that effectively controls access to a work is illegal if it is done with the primary intent of violating the rights of the copyright holders.

Ficci said that because of increasing pressure on the industry itself, music companies are considering releasing music over the Internet without copyright protection, which would fuel Internet distribution and revenue growth by allowing downloaded music to be played on virtually any device.

'With physical distribution falling rapidly, labels are becoming more receptive to strategies that enhance digital distribution even as it reduces impediments to unauthorised distribution,' the report said.

'Companies are experimenting with different approaches to intellectual property management. It is expected that technologies, methodologies, and business models will continue to evolve during the next several years,' it added.

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