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MEDIA AND INTELLECTUAL
   PROPERTY IN THE
  CONVERGENCE ERA
   ___________________
 AFTER ALL, WHAT DOES THE
     INDUSTRY WANT?


                                                               Arte: Israel Campus Beat



                  Cláudio Lins de Vasconcelos , LL.M, D. Sc.

                         Rio de Janeiro, Oct. 10, 2012
What would you do today . . .




             . . . if you had the day off?
THE MEDIA INDUSTRY:
                                                                         STAGES OF THE PRODUCTIVE PROCESS
                                               (See VASCONCELOS, Cláudio L. Mídia e Propriedade Intelectual: A Crônica de um Modelo em Transformação. Rio de
                                                                                       Janeiro: Lumen Juris, 2010, p. 85)



                                                                                                  MEDIA




                                                                                                                                                         INTELLECTUAL ASSETS AS PRODUCTS
                                                                      Images                                                         TV Shows




                                                                                                                                                                                           “B2C” AXIS (Company to Consumers)
“B2B” AXIS (Suppliers to Company)

                                    INTELLECTUAL ASSETS AS INPUTS




                                                                                   →           CREATION
                                                                    Performances                                                 Movies/Soap operas

                                                                    Compositions                                                    Phonograms
                                                                                            PRODUCTION
                                                                       Texts                                                           Books

                                                                    Show Formats                                                    Reality shows

                                                                    Other rights           DISTRIBUTION *                    →     Other products


                                                                                       * (Lato sensu: includes exhibition)
                                                                        COST                                                         REVENUE
IP LEGAL
                                                                                            FRAMEWORK



                                                                                                  MEDIA




                                                                                                                                                      INTELLECTUAL ASSETS AS PRODUCTS
                                                                      Images                                                         TV Shows




                                                                                                                                                                                        “B2C” AXIS (Company to Consumers)
“B2B” AXIS (Suppliers to Company)

                                    INTELLECTUAL ASSETS AS INPUTS




                                                                                   →            CREATION
                                                                    Performances                                                 Movies/Soap operas

                                                                    Compositions                                                    Phonograms
                                                                                             PRODUCTION
                                                                       Texts                                                           Books

                                                                    Show Formats                                                    Reality shows

                                                                    Other Rights          DISTRIBUTION *                     →     Other products


                                                                                       * (Lato sensu: includes exhibition)
                                                                        COST                                                         REVENUE
THE 20th-CENTURY INDUSTRY:
                              TELEREALITY




“Fantasia”, by Walt Disney    Photo: AP apud CSM   Photo: EMPICS apud ESPN




             Analogical – unidirectional – unimediatic
THE 21st-CENTURY INDUSTRY:
                            THE GLOBAL SCREEN




Photo: Google apud TechCrunch   “Avatar”, by James Cameron   Photo: Oswaldo Gago




               Digital – multidirectional – multimediatic
THE DIGITAL SCHOCK:
FULL OF MEANS, SHORT OF MESSAGES


  CREATION              IP = Revenue



 PRODUCTION             IP= Cost and
                          Revenue



DISTRIBUTION

                         IP = Cost

CONSUMPTION
THE GREAT MEDIA DIVIDE
                                     (2000 – 2010)




                                                                DISTRIBUTION – CONSUMPTION
                        RIGHT HOLDERS            FINAL USERS
CREATION – PRODUCTION




                        RECORD LABELS           TECHS/DOTCOMS

                                         X
                        MOVIE STUDIOS             TELECOMS




                        “OLD” MEDIA             “NEW” MEDIA
DECADE OF ‘10: TECHNOLOGY
 WITHOUT CONTENT LACKS CONTEXT

Art: PBS




                                 Art: Apple




 Art: UOL
WITH THE APP REVOLUTION WE’VE LEARNED:
         NOTHING NEW UNDER THE CLOUD

       CONSUMERS WANT CONTENT-INTENSIVE PRODUCTS IN A USER-FRIENDLY
1               INTERFACE (AND WILL WAIT DAYS IN LINE FOR IT)



    THERE IS NO SUCH THING AS “OLD” AND “NEW” MEDIA. BORN DOTCOM OR NOT,
2       THEY ARE ALL DIGITAL NOW, OPERATING IN THE SAME BUSINESS CHAIN



    NO BUSINESS WOULD EVER PAY FOR ANY INPUT IF IT COULD, BUT MOST HAVE TO.
3                OTHERWISE, IT IS CALLED “UNFAIR COMPETITION”



      SELLING ADDS ATTACHED TO PROTECTED CONTENT WITHOUT SHARING THE
4          REVENUE TO SEE WHAT THE COURTS SAY IS NO BUSINESS MODEL
AND WHAT DOES THE INDUSTRY WANT,
           AFTER ALL?


        CLEAR AND EFFECTIVE LAWS



     COST AND REVENUE PREDICTABILITY



          RESPECT TO CONTRACTS



      JUSTICE AND LEGAL SECURITY
THE MAIN FORMS OF
                           CONTENT MEDIATION

 Professional Media: content is treated        Institutional Media: content is only
as an asset, bought as an input and sold       a mean to achieve a parallel end –
as a product. Investments must be              commercial, political, etc. –, as an
recovered directly, based on the               “add”, lato sensu. Investments are
economic value of the content itself. IP-      recovered indirectly. Ex.: free books to
related legal security is critical. Ex.:       sell conferences; free downloads to sell
broadcast and pay TV, movie studios,           merchandise; free entertainment to
record labels, etc.                            “sell” a political party project.


 Amateur Media: content is an                  Non-Media: content is distributed
interpersonal communication tool. It may       by the creator him/herself, without any
be professionally produced or not, but its     critical evaluation by third parties.
mediation (selection, criticism, exhibition,   “Solitary” investments in creation and
etc.) is rewarded by non-monetary              production must be recovered directly,
means, such as vanity or peer influence.       on the creator’s own risk. Ex.: the artist
Creators/producers rarely compensated.         who creates, produces and sells his/her
Ex.: Social network uploads and the like.      own records (one-man business).
PROS AND CONS OF THE FORMS OF
                   CONTENT MEDIATION

 Professional Media:                      Institutional Media:

      Quality, accountability, value is         Free access, secondary
      focused on the content itself             economic benefits

      Economic barriers, limitations            Content value attached to a
      to consumer choice                        purely commercial, political or
                                                institutional (hidden?) agenda



 Amateur Media:                           Non-Media:

      Social participation,                     Freedom of artistic expression,
      multidirectional dialogue                 economic de-intermediation
      Undermining of content                    “Solitary” investment, low
      economic value, reduced                   aggregate value, lack of shared
      incentives to creation/production         references
“Caminante, son tus huellas / el camino, y nada más; / caminante, no hay
   camino, / se hace camino al andar. / Al andar se hace camino, / y al
volver la vista atrás / se ve la senda que nunca / se ha de volver a pisar. /
           Caminante, no hay camino, / sino estelas en la mar…”

                   (ANTONIO MACHADO, Proverbios y Cantares)




                                                                Photo: L. Moreno
TO KEEP ON TALKING...

    WWW.DIREITOEMIDIA.COM.BR




CLAUDIO@LINSDEVASCONCELOS.ADV.BR
Rua General Garzon, 22, s/606 - Jd. Botânico - Rio de Janeiro, RJ, Brasil - CEP 22470-010
+55 (21) 3217.9788           +55 (21) 6860.5959           www.linsdevasconcelos.adv.br

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Media and Intellectual Property

  • 1. MEDIA AND INTELLECTUAL PROPERTY IN THE CONVERGENCE ERA ___________________ AFTER ALL, WHAT DOES THE INDUSTRY WANT? Arte: Israel Campus Beat Cláudio Lins de Vasconcelos , LL.M, D. Sc. Rio de Janeiro, Oct. 10, 2012
  • 2. What would you do today . . . . . . if you had the day off?
  • 3. THE MEDIA INDUSTRY: STAGES OF THE PRODUCTIVE PROCESS (See VASCONCELOS, Cláudio L. Mídia e Propriedade Intelectual: A Crônica de um Modelo em Transformação. Rio de Janeiro: Lumen Juris, 2010, p. 85) MEDIA INTELLECTUAL ASSETS AS PRODUCTS Images TV Shows “B2C” AXIS (Company to Consumers) “B2B” AXIS (Suppliers to Company) INTELLECTUAL ASSETS AS INPUTS → CREATION Performances Movies/Soap operas Compositions Phonograms PRODUCTION Texts Books Show Formats Reality shows Other rights DISTRIBUTION * → Other products * (Lato sensu: includes exhibition) COST REVENUE
  • 4. IP LEGAL FRAMEWORK MEDIA INTELLECTUAL ASSETS AS PRODUCTS Images TV Shows “B2C” AXIS (Company to Consumers) “B2B” AXIS (Suppliers to Company) INTELLECTUAL ASSETS AS INPUTS → CREATION Performances Movies/Soap operas Compositions Phonograms PRODUCTION Texts Books Show Formats Reality shows Other Rights DISTRIBUTION * → Other products * (Lato sensu: includes exhibition) COST REVENUE
  • 5. THE 20th-CENTURY INDUSTRY: TELEREALITY “Fantasia”, by Walt Disney Photo: AP apud CSM Photo: EMPICS apud ESPN Analogical – unidirectional – unimediatic
  • 6. THE 21st-CENTURY INDUSTRY: THE GLOBAL SCREEN Photo: Google apud TechCrunch “Avatar”, by James Cameron Photo: Oswaldo Gago Digital – multidirectional – multimediatic
  • 7. THE DIGITAL SCHOCK: FULL OF MEANS, SHORT OF MESSAGES CREATION IP = Revenue PRODUCTION IP= Cost and Revenue DISTRIBUTION IP = Cost CONSUMPTION
  • 8. THE GREAT MEDIA DIVIDE (2000 – 2010) DISTRIBUTION – CONSUMPTION RIGHT HOLDERS FINAL USERS CREATION – PRODUCTION RECORD LABELS TECHS/DOTCOMS X MOVIE STUDIOS TELECOMS “OLD” MEDIA “NEW” MEDIA
  • 9. DECADE OF ‘10: TECHNOLOGY WITHOUT CONTENT LACKS CONTEXT Art: PBS Art: Apple Art: UOL
  • 10. WITH THE APP REVOLUTION WE’VE LEARNED: NOTHING NEW UNDER THE CLOUD CONSUMERS WANT CONTENT-INTENSIVE PRODUCTS IN A USER-FRIENDLY 1 INTERFACE (AND WILL WAIT DAYS IN LINE FOR IT) THERE IS NO SUCH THING AS “OLD” AND “NEW” MEDIA. BORN DOTCOM OR NOT, 2 THEY ARE ALL DIGITAL NOW, OPERATING IN THE SAME BUSINESS CHAIN NO BUSINESS WOULD EVER PAY FOR ANY INPUT IF IT COULD, BUT MOST HAVE TO. 3 OTHERWISE, IT IS CALLED “UNFAIR COMPETITION” SELLING ADDS ATTACHED TO PROTECTED CONTENT WITHOUT SHARING THE 4 REVENUE TO SEE WHAT THE COURTS SAY IS NO BUSINESS MODEL
  • 11. AND WHAT DOES THE INDUSTRY WANT, AFTER ALL? CLEAR AND EFFECTIVE LAWS COST AND REVENUE PREDICTABILITY RESPECT TO CONTRACTS JUSTICE AND LEGAL SECURITY
  • 12. THE MAIN FORMS OF CONTENT MEDIATION  Professional Media: content is treated  Institutional Media: content is only as an asset, bought as an input and sold a mean to achieve a parallel end – as a product. Investments must be commercial, political, etc. –, as an recovered directly, based on the “add”, lato sensu. Investments are economic value of the content itself. IP- recovered indirectly. Ex.: free books to related legal security is critical. Ex.: sell conferences; free downloads to sell broadcast and pay TV, movie studios, merchandise; free entertainment to record labels, etc. “sell” a political party project.  Amateur Media: content is an  Non-Media: content is distributed interpersonal communication tool. It may by the creator him/herself, without any be professionally produced or not, but its critical evaluation by third parties. mediation (selection, criticism, exhibition, “Solitary” investments in creation and etc.) is rewarded by non-monetary production must be recovered directly, means, such as vanity or peer influence. on the creator’s own risk. Ex.: the artist Creators/producers rarely compensated. who creates, produces and sells his/her Ex.: Social network uploads and the like. own records (one-man business).
  • 13. PROS AND CONS OF THE FORMS OF CONTENT MEDIATION  Professional Media:  Institutional Media: Quality, accountability, value is Free access, secondary focused on the content itself economic benefits Economic barriers, limitations Content value attached to a to consumer choice purely commercial, political or institutional (hidden?) agenda  Amateur Media:  Non-Media: Social participation, Freedom of artistic expression, multidirectional dialogue economic de-intermediation Undermining of content “Solitary” investment, low economic value, reduced aggregate value, lack of shared incentives to creation/production references
  • 14. “Caminante, son tus huellas / el camino, y nada más; / caminante, no hay camino, / se hace camino al andar. / Al andar se hace camino, / y al volver la vista atrás / se ve la senda que nunca / se ha de volver a pisar. / Caminante, no hay camino, / sino estelas en la mar…” (ANTONIO MACHADO, Proverbios y Cantares) Photo: L. Moreno
  • 15. TO KEEP ON TALKING... WWW.DIREITOEMIDIA.COM.BR CLAUDIO@LINSDEVASCONCELOS.ADV.BR
  • 16. Rua General Garzon, 22, s/606 - Jd. Botânico - Rio de Janeiro, RJ, Brasil - CEP 22470-010 +55 (21) 3217.9788 +55 (21) 6860.5959 www.linsdevasconcelos.adv.br