Thomson's Vision: Smart Cards For Everything

ideaspin writes: "Thomson Multimedia is pushing the adoption of its smart card technology (SmartRight) in all kinds of devices ranging from TVs to PCs and set-top boxes -- basically, anything that might play digital media. Information Week has an article about it as does Webnoize(subscription only). This doesn't smell like something that would survive on the PC and consumers aren't going to be thrilled about the restrictions that such technology will bring -- no recording, limited archivability, no sharing and additional hardware for every viewing device. Interesting thing is that they are trying to convince the government to require the computer industry to adopt such a standard. Along with the copy protection schemes built into portable media and hard drives, this is one of the many ways that they are trying to lock down 'rogue' PC devices."

Copy protection is not a 'feature' consumers want.

Adding this kind of copy protection to PCs, set top, boxes etc is basically the same at the music industry's attempts at a secure digital format to replace CDs. You can't add take an existing product (i.e. CDs or PCs), add copy protection and expect it to succeed in the marketplace against it's un-secured cousins. Secured versions of existing tech offer no extra value for consumers. It's that simple.

The only way to get copy protection into people's homes is to piggy back it on something new and cool that people might actually want. DVD being a good example. High quality movies, ~7 Gig disks. Something that wasn't possible or available before. People want that, can't get it elsewhere, and will put up with CSS and the other annoying copy protections features that come with it.

--
Simon

The perfect copy-protection scheme...

Here is "the perfect copy-protection scheme(tm)" that should be adopted by everyone (you) and endorsed by all the major media monopolies(company):

1) You won't actually "own" a computer, handheld, phone, TV, stereo or other media device -- you just rent it. The company will provide one for you. You will be given permission to rent this device for as long as you would like. Upon request the device must be returned to the company.

2) You won't get to actually choose which content you would like to watch or listen to... the company will select this content for you (based on a comprehensive demographic marketing profile) and automatically send it to your device. You will be billed accordingly.

3) You will be contacted daily by advertisers working in close conjuction with the company to fine-tune your profile. You are expected to buy products and services so that we may determine your likes and dislikes. This information will be shared with all of our partners and affiliates.

4) CD-Burners, Floppy disks, Zip disks and other removable media are hereby banned. You really don't need to create "backups" anyway. Since you are only renting the computer and paying to view the content - there is no need to create copies. If your computer/PDA/phone/device ever becomes unusable due to hardware or software problems, please return it to the company for a replacement.

"If Linux becomes outlawed... then only outlaws will run Linux."

Re:a solution in search of a problem

Electronic wallets may not be too popular in the states - here in Belgium and the Netherlands electronic wallets do quite well (cfr. Proton & Chipknip). And we're not quite alone here in good old Europe ;-)

Furthermore, magstripe-based bank cards are being replaced with smartcards, because they're less susceptible to failing (i.e. due to magnetic lock in your handbag, ...), and they're way harder to copy than their magstripe counterparts.

Personally, I find the credit card number scheme quite ludicrous (look ma, no code!).

Okay... I'll do the stupid things first, then you shy people follow.

Re:My prediction ... microPKI

see http://www.citi.umich.edu/projects/smartcard/ [umich.edu] for several open source applications on your wish list.

nobody

a solution in search of a problem

thomson is one of a handful of smartcard vendors, all of whom are beyond hope of a clue. they have been searching for a problem solved by smartcards for 20 years or more.

the electronic wallet has been their obsession but consumers everywhere hate the idea. (i see american express announced just this week that they are giving up on the electronic wallet for their blue card.) the gsm sim, which emerged in the last five years out of nowhere to become the largest smartcard application, completely took them by surprise.

so don't count on thompson or their cohort for much beyond a damn fine press release. they run this sort of thing up the flagpole regularly just to see who will salute.

nobody

Re:Okay, but...

And people won't buy them. The point about "Thomson has sold 10 million DirecTV satellite receivers" is just stupid. Nobody buys satelite receivers. They rent them.

worse than that. They don't rent receivers at all: they pay a monthly fee to watch the shows.

That Thomson think the box is the most important thing is probably inevitable (given that they make the things) - but they're making the classic mistake. The consumer only cares about the content - and if they can get it easier/cheaper someplace else, then they will.

The technology is just a barrier for most people.

Just can't comprehend

I will be very interested to see how consumers react to this sort of thing. In general, the more difficult they make it to use these sorts of "services," the more people will migrate to readily available and free music.

And until they find a way to restrict my ability to record my own compositions, or they find some way to stop my guitar strings from vibrating without a properly installed license, I'll have all the music I need, and they will have none of my money.

I imagine it's pretty hard to sustain a cultural phenomenon when friends can't say "hey, listen to this!" because everything is pay-per-play. It will be quite interesting to see how effective the brainwashing has been.

I really can't see this working

Thomson are just one of several manufacturers - I don't care how many units they've slod - it's just a drop in the ocean. So they sell stuff with content protection and hype it big-time. Other companies jump on the bandwagon with similar but non-compatible schemes cos they're bigger than Thomson and don't want to pay to licence their tech. A standards committee is set up, who might come up with something in 5 years that no-one pays attention to.

Some people buy it. That's right, some people will give up their rights if a snazzy advert tells them to.

Other people go - what, so I've got to replace all the TVs, VCRs, DVD players and PCs in my house with ones that conform to this one format (and since there's several competing ones it's difficult to pick which one to go with), and I have to pay extra for the privalige. Hmm, no, I don't think that sounds like a reasonable deal.

Mean time, there'll be a small manufacturer or two, who can't afford to produce something like this, and go on producing un-restricted platforms. Which everyone starts to buy.

Joe Public may not care too much about violations of his rights, but he doesn't want to have people try to restrict how he watches TV. You can supress minorities (Linux users & DeCSS), but if you try to stop everyone you're going to have a lot of problems. Will Joe Public vote again for his seanator if his seanator restricts his cable? Nope. So government are going to be reluctant to pass this too. Nice try Thomson.

Another Microsoft?

I think that Thomson can't and should not succeed for a number of different reasons.

1. I don't want to see a hardware "Microsoft" running all of our TV's, set-top boxes, DVRs and HDTV sets because it would give Thomson an immeasurable amount of leverage in regards to pricing. Feel free to correct me if I'm wrong, but if the company is hell bent on having their hardwaree in all these devices, and they're trying to get the government to mandate it (a highly unlikely outcome), then they'll gain a huge amount of market control. If their devices are in a large enough proportion of what people buy, then companies are going to need to use Thomson's stuff, and pay their prices. Similar thing with Windows, funnily enough.

2. No copyright protection schemes, even those embedded in hardware, are crackproof. PSX/PS One "mod" chips used to play pirate copies of PS games and DeCSS (even though it's software it still counts) are telling examples of the industry's failed attempts at hardware-level copyright control. Even if the hardware cracks do not become ubiquitous (their very illegality prevents such a possibility), people will merely figure out ways around them, and we may end up with a TV/video Napster (assuming that such a technology is possible to apply with receiving devices - DVRs maybe).

3. The uptake of Thomson's products relies on a marked increase in the purchasing of DVRs, HDTV sets and set-top boxes. This is not the case because such devices for the moment are too expensive for Mr Joe Average to consider replacing his old TV/VCR. The uptake of technologies even in techno-crazed countries such as Australia (who has one of the highest rates of mobile/cell phone ownership in the world) is still going to take a while. There needs to be a huge drop in price, which just isn't going to happen because the devices are complicated and expensive to make and the content just isn't there to make it worthwhile. So there's not much point in worrying about the effects of such a development because for the moment it will remain a plan to implement changes to what are currently considered niche, rich-bastard devices.

4. Even Thomson themselves (via their government affairs representative) admit that these devices won't completely solve the problem. They say that "the SmartRight technology is "not a panacea" for securely distributing digital video, but he scoffs at the notion that consumers won't buy devices dependent on smart cards." Now correct me if I'm wrong, but I think that quite a lot of consumers would not like to buy a device that is; a) not completely necessary (since the revenue in TV is advertising and not actual content) and b) obsolete in a few years.

Therefore, the chances of Thomson achieving their goal is quite remote considering the number of obstacles in their way and the considering that the hardware makers have historically been very resistant in implementing these changes from Day One. There are just too many obstacles in the way for them to succeed.

Self Bias Resistor
"When the pin is pulled, Mr. Grenade is no longer our friend." - Murphy's Laws Of Combat

Copy protection simply doesn't work.

How many years has this been going on for. It must be 15 or so years since I first started seeing copy protection of some form. I also remember that it didn't take long for a crack to turn up on the local BBS.

Still, companies invested money in trying to make a better copy protection system. And the cracks continued to turn up shortly after. Look at the money invested in CSS, and how long did that last.

So bring it on fellas, and we'll hack it, and crack it, and find a better use for it.

Shift in Paradigm

It's funny: remember when SmartCards(tm) were being developed as a security measure for the consumer? Back in the old days, these devices were envisioned to help protect people from unauthorized use of their systems.

Now, I'll need a SmartCard(tm) for my coffee machine to validate that I alone paid for my coffee beans.

Re:Some more points

Blockquoth the poster:

I'm all in favour of getting something for nothing, but what about up-coming bands that don't have massive record sales who are losing money because people are distributing their material free of charge?

Is there a documented case of this occurring? Because from my understanding of how the recording industry works, up-and-coming bands either (a) don't get contracts or (b) don't make any money off the contracts they do get.

As some documentation for my statement :), I'll offer "Courtney Love Does the Math [salon.com]", which appeared a year ago in Salon. It's a good read.

Okay, but...

Why can't we copy the smartcards? Are they plannning to include smartcards with these smartcards to protect the IP stored in them? Are those going to be protected by smartcard technology?

And people won't buy them. The point about "Thomson has sold 10 million DirecTV satellite receivers" is just stupid. Nobody buys satelite receivers. They rent them.

If it works...

People are wrong in assuming copy protection will never work, or if it does, no one will buy it. Some will be rather rudely surprised when the public blindly adopts the new standards. Yeah, copying will still be possible, but all the media giants have to do is make it more trouble than it's worth. This could happen sooner than you think.

I don't know about you, but I'll be moving to a place where freedom from inherently evil large corporations is absolute: North Korea.

nine out of ten indusrtry analysts agree...

"Analysts are applauding the move as a needed step toward providing the security Hollywood desires, but they're skeptical that consumers will embrace devices that require use of smart cards"

Industry analysts are so often quoted in the press, but just where do they find these people? It seems like a great job if you can get it.. getting paid to give painfully obvious, yet wholly ambiguos answers.

Smoke 'em if you got 'em...

Protected content is going to be sold to the masses the same way cigarettes are sold. Pause for a second and imagine if cigarettes were a new product being announced, picture the /. headline:

R.J. Reynolds, well known for its food wraps, has announced a recreational drug. In many ways similar to the illegal drug marijuana, this new drug is made from the dried leaves of plants, wrapped in paper, and is meant to be ignited and smoked. Pre-market studies have concluded that this product will be addictive and have negative health impacts. The government has required the package to contain a warning. R.J. Reynolds has said they will promote this new product heavily by celebrity endorsements and a massive advertising campaign. The question is, will the public buy it?

Okay, back to reality...

Once 14-year old Jason can't get his favorite songs on "standard" CD anymore and a new smart card protected player comes out, you can bet your fair use he's gonna bug the hell out of his parents for it. Of course, MTV will feature ads making standard CD players look "so last century" and maybe feature discounts on clothing, food and music if you present your smart card at select retailers. The industry will lure in its most valuable customers (teens and young adults) by offering discounts and heavily promoting the products with celebrities. It worked for cigarettes, and it will work again. At least smart cards aren't harmful to your health.

Don't worry though, as it has been said before, you can still record anything you can hear. For exact digital copies, ripping tools will still be made, albeit illegally. Don't want to smoke tobacco? You can still smoke marijuana, albeit illegally...

Yes I'd like to live in a world where I can make perfect digital copies of music I have purchased... It would be even better if I could get music I haven't purchased, for free. However, the reality is, we live in a world with macrovision, smartcards, DeCSS lawsuits and a large entertainment industry that couldn't sustain itself if the underground piracy that really didn't hurt its bottom line became mainstream. Just like free ISPs, you can only give away the farm for so long before you buy the farm...

Oh, and I don't smoke (well, as long as I'm not on fire).