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DRM: too expensive for cell phones Says GSMA	By 4th of April 2005, 06:45 GMT Adjust text size:


The GSM operators have started to lobby against the very high prices proposed by the MPEG Licensing Authority, the one which manages the DRM protection standard (Digital Rights Management). The GSMA organization represents all the GSM operators, which have over 1 billion subscribers. GSMA has started a campaign against the prices proposed by Open Mobile Alliance; these prices are described as impassable because they unfavorable for the users. The offer proposes that operators pay the DRM license owners 1% from the transactions and 1 USD for every terminal. The main beneficiaries are companies like ContentGuard, Intertrust, Matsushita, Philips and Sony. GSMA considers that the technology used in the open standard for anti-piracy is far too expensive. Consequently, the organization has started to threat that it will boycott the standard and asks for smaller prices for the DRM systems. The open standards are required for the downloading and running of music or films on cell phones. GSMA members consider that the fee proposed for every transaction is abusive and impassable on the cell phone market. Considering that in 2004, 684 million cell phones were sold, GSMA has declared that in case cell phone producers equip their phones with anti-piracy systems, the sum required by DRM would have surpassed the total value of music sales from last year. GSMA is supported by one of the biggest cell phone operators in the world: Vodafone. The anti-piracy technology developed by OMA s the first open standard which can be used by all electronic good producers. It is administrated by the MPEG II LS group, which has managed patents for Sony Corp, Matsushita Electric Industrial Co Ltd and Philips. Other similar technologies are currently developed by rival companies.

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