The consumer will follow the path that maximizes thier household comsumption utility. Its all about the customer. MP3 players today provide a better experience even though it is hard to get the music on them. Make it easer than current file swapping and users will gladly pay. Why can't I go into a music store and walk away with my digital music needs met? The CD was great but so was my 8-Tracks deck. My preferred music players now days eat mp3 and output music. I'm not going to go back to jogging with a cd player sorry my mp3 is a better user experience.
Microsoft: Peer-to-Peer beats Digital Rights Management any day.
MS Researchers say P2P will always beat DRM. According to The Register (File swap nets will win, DRM and lawyers lose, say MS researchers), a paper from a group of Microsoft researchers says that "darknet" file swapping will always be able to share pirated files, no matter what DRM technology copyright holders use. The paper goes through the various options like watermarking and explains why they all will fail. This true even for DRM built into the hardware. The paper concludes that the only way for corporations to compete is to make their services more convenient and full-featured. We have known this all along, but it is pretty amazing to hear some Microsoft people say it. This paper is just the thing to refer to when the next congressional bill comes up to make DRM manditory, just explain to them that even MS says it won't work. [infoAnarchy] [Seb's Open Research]
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