If Piracy Is the Problem, Is DRM the Answer?

Abstract

Piracy of digital content is considered a serious problem by content companies. Digital Rights Management is considered a potential solution to this problem. In this paper we study to what degree DRM can live up to this expectation.We conclude that given the current and foreseeable state of technology the content protection features of DRM are not effective at combating piracy. The key problem is that if even a small fraction of users are able to transform content from a protected to an unprotected form, then illegitimate distribution networks are likely to make that content available ubiquitously. One possible technological solution to the problem is what we call “draconian DRM”, which involves deploying devices that only process managed content. However, we find that such systems face significant, if not insurmountable, ob- stacles to deployment and we believe that the real solution to the piracy problem is largely non–technical. The most effective way for interested parties to defeat piracy may be to compete with it. Our paper is closely related to the chapter of this book entitled: The Darknet and the Future of Content Protection (page 344). Instead of focusing on the distribution network, however, we describe in more depth how DRM systems attempt to deal with various aspects of piracy, and how they fail.