[d@DCC] Records of DVD CCA Discontinued Case?

From: Russell McOrmond <russell _-at-_ flora.ca>
To: Competition Bureau <Compbureau (at) ic.gc.ca>
Cc: General Copyright Discussions <discuss -_at_- list.digital-copyright.ca>
Date: Thu, 9 Dec 2004 09:10:18 -0500 (EST)

Dear competition bureau,

  I searched through the recently released Annual Report of the
Commissioner of Competition as well as past reports looking for
documentation of our DVD CCA complaint. I understand that our past
complaints about the DVD CCA was discontinued, and that there was a
conclusion that since there was no problem with price or availability in
Canada of Hollywood movies that there were no competition problems.

  I had expected this Competition Bureau analysis to be documented in a
report so that there would be a record for bureaucrats and the
commissioner to realize that this is an area of concern for Canadians.

  I would like to see a written report from the bureau showing the reasons
our complaint was not considered for investigation.


The DVD CCA Complaint
---------------------

  The purpose of the DVD CSS system is to create a tie between the
purchase of a DVD movie encoded in DVD CSS with a DVD player that is
licensed by the DVD CCA.  This allows Hollywood to dictate the features of
DVD players, a power that will continue to be abused to protect the
interests of Hollywood against the interests of the larger consumer
electronics industry and consumers.

  This arrangement is only peripherally related to copyright as copyright
is (ab)used to justify this regime.  Independent analysis shows that this
regime does not protect copyright, but protects the business models and
market dominance of the incumbent motion picture members of DVD CCA from
advances in communications technologies and competitive business models.  
This protection is accomplished through an increasingly impenetrable
barrier to market entry created by this tied-selling.

Annual Report of the Commissioner of Competition
http://www.digital-copyright.ca/discuss/4175

Copy of Aug 2001 complaint
http://www.digital-copyright.ca/discuss/42

Copy of one of the replies from the Bureau (Oct 2001)
http://www.digital-copyright.ca/discuss/168

Formal submission to the Competition bureau on the DVD CCA issue
http://www.flora.ca/competition2003/


  To be clear, we are not complaining about the release-date of North
American (Hollywood) movies being received in Canada, nor are we
complaining about the subsidized price of DVD players. We are complaining
about the harm caused to the consumer electronics industry and to
consumers by the government supporting the ability of a few companies in
one market (Motion Picture Studios) to be given control over products
created in separate markets (consumer electronics, player software on home
computers, etc).


Ongoing DVD CCA problems
------------------------

  Recent media reports indicate that the DVD CCA has continued to attempt
to veto the creation of more advanced DVD players such as digital
jukeboxes.

Hollywood allies sue DVD jukebox maker
http://news.com.com/Hollywood+allies+sue+DVD+jukebox+maker/2100-1025_3-5482206.html


Other markets
-------------

  I had hoped the Competition bureau would spend time analyzing the DVD
CCA situation so that they could then be ready to intervene in other
related markets.  The concept of Digital Rights Managements (DRM) is
generally a competition problem, and the bureau should be monitoring each
market where DRM is being introduced.

  There are three parties involved in DRM: the copyright holder, the
vendor of the DRM, and the owner of the communications device. In all
situations the purpose of DRM is to revoke control from the owner of the
device and put it in someone else's hands. It is most often suggested that
this control would be vested in the copyright holder, but in this scenario
the control is entirely vested with the vendor of the DRM.  The digitally
encoded license agreement of the copyright holder will only be obeyed when
it is in the private interests of the DRM vendor to do so.

  Details at: http://www.digital-copyright.ca/node/view/609

  The recording industry is wanting to take control over the means of
creation and distribution of music in the same way that the motion picture
industry is attempting with the DVD CCA.  There isn't yet a single DRM
vendor or association in this new market, but given the fact that
consumers will be unlikely to purchase multiple devices to be compatible
with multiple DRM associations, one DRM system for music will eventually
win.

  I wrote about the anti-competitive threats, and the fact that I am
already locked out from purchasing music from these music download
systems.

  Re: iTunes vs. Puretracks: The downloading duel begins!
  http://www.digital-copyright.ca/discuss/4167

    "  As someone who believes that it should be the owner of the
    communications device (computer, camcorder, VCR, etc) that should be 
    in control, and not some third party, I am a strong opponent of DRM.
    The music industry asking me to purchase either Microsoft DRM or Apple
    DRM is like giving a Conservative member of parliament the choice
    between purchasing tickets to Liberal fundraisers or NDP fundraisers."

  I could just as easily have used an analogy to advertising agencies
loyal to a specific party, which is the type of scandal I consider
Canadian government support for DRM to be.

-- 
 Russell McOrmond, Internet Consultant: <http://www.flora.ca/> 
 Have you, your family, your friends (, your enemies) signed the
 Petition to the Canadian Parliament for Users' Rights in Copyright?
 http://digital-copyright.ca/petition/
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