Dece watermarking: implementer response to content provider proposal for screening on high definition capable devices

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  Watermark Detection: The rules and parameters for watermark detection (e.g., false positive rates) shall be set such that legitimate consumers shall be minimally inconvenienced. The AACS rules may serve as a guideline.
  
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  HD Devices Only: Only compliant DECE HD profile Devices (Licensed HD Devices) will screen for a Watermark. Devices not licensed by DECE for HD Content are not obligated to detect the Watermark.
  
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  Applicable content: Only [TBD content type] from [TBD content source] need be screened for a Watermark. For purposes of illustration, bi-directional video conferences do not need to be screened.
  
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  No Home Use (NHU) ONLY: Devices shall only respond to “No Home Use” (NHU) flag in the Cinavia™ Watermark. For the purposes of this document, only Licensed HD Devices are bound by these obligations and are separated into one of the two following two classes:
  

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   Closed platform Devices (including, without limitation and for illustrative purposes, “closed bus”, embedded client devices with tamper-resistant hardware, such as current generation: (a) set top boxes, (b) cellular handsets, (c) Televisions, (d) DVD and Blu-ray players, and (e) games consoles). Closed platform Devices may perform the watermark detection in any manner that screens for the Cinavia Watermark as set forth in the Adopters requirements below but for the avoidance of doubt may screen in the application licensed to play back DECE HD Content or system layer, i.e. licensed DECE HD “widget” running on a TV shall screen for the watermark, however non-DECE “widget” running on same TV is not obligated to screen for the watermark.
   
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   Software Media Players, licensed to play back DECE HD Content, functioning on open platform devices (including, without limitation, personal computers and other devices with a user-accessible bus). For the avoidance of doubt, neither the DRM, or the Operating System nor the Hardware shall be responsible for detecting responding to the NHU Flag.
   

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  Market Leaders “Phase-in” period would consist of the 36 months following the date (‘Phase-In Trigger date’) on which legitimate digital distribution service providers that collectively have a significant market share (to be defined) are implementing watermark detection in the same fashion for HD EST (‘Major Market Usage’). At the end of the Phase-In period (the ‘Detection Date’) Licensed HD Devices are required to do NHU watermark screening. If the phase-in does not commence within [TBD] less than 36 months of DECE launch (to be more clearly defined), then there shall be no detection requirement thereafter.
  
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  Market Leader equalization: In the event the Major Market Usage exempts certain devices, categories of devices, or delivery mechanisms from a detection obligation, Licensed HD Devices shall automatically be entitled to those same exemptions, in addition to any provided in this document.
  

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  Anti-Schmuck Insurance (during Phase-In) if after the Phase-in (above) has been triggered but before the Detection Date,
  

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   major Market Usage sufficiently declines [TBD], or
   
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   DECE has not reached sufficient level of adoption [TBD] , or
   
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   a total of two or more DECE MC Content Providers, or MPAA members publishing into DECE [Qualified Content Participants], license “current” HD content to any service provider without requiring the service to ensure all related playback devices support watermark enforcement, or
   
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   qualified Content Participants engage in a pattern or repeated instances of failure to enforce compliance with license terms and/or compliance rules related to watermark enforcement requirements, in effect at the time of the Detection Date, which leads either to a significant number of devices/services not complying or to a smaller number of devices/services, including a single device model/service, repeatedly breaching (i.e., multiple releases/version), in either case with repeated non-enforcement, and in either case thereby causing a constructive change to such license terms and/or compliance rules, or
   
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   [IP Infringement Issue consistent with AACS],
   

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  Consumer Benefits: [TBD] months after the Phase-In Trigger date, the DECE usage model will expand the domain device count limit to [TBD] and the LASP steaming limit to [TBD] streams per Account.
  
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  Anti-Schmuck Insurance (going forward) if at any time after the Detection Date
  

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   Major Market Usage sufficiently declines [TBD], or
   
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   two or more Qualified Content Participants license “current” HD content to any service provider without requiring the service to support the Watermark, or
   
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   Qualified Content Participants engage in a pattern or repeated instances of failure to enforce compliance with license terms and/or compliance rules related to watermark enforcement requirements, in effect at the time of the Detection Date, which leads either to a significant number of devices/services not complying or to a smaller number of devices/services, including a single device model/service, repeatedly breaching (i.e., multiple releases/version), in either case with repeated non-enforcement, and in either case thereby causing a constructive change to such license terms and/or compliance rules, or
   
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   [IP Infringement issue consistent AACS], or
   
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   use of watermark detection is deemed illegal in any major [TBD] distribution territory,
   

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  Anti-Schmuck WM Usage: Qualified Content Providers shall insert the NHU WM into significantly many [TBD] theatrical releases. If at any time, watermark insertion on Theatrical releases from Qualified Content Providers falls below a certain percentage [TBD], then watermark detection in DECE will thereafter no longer be required.
  
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  Hacking Insurance. If the Watermark is significantly hacked , i.e., if 30% of titles currently in theatrical release distributed with the Watermark are available through illegitimate sources without the Watermark or there is widespread availability of circumvention tools that remove the Watermark such that current detectors cannot detect the Watermark.
  
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  Anti-Lobbying. DECE MC content providers agree not to seek nor to support government action which would mandate or broaden any screening obligations for the DECE Watermark, or to use the fact that DECE has agreed to potential watermark obligations, in support of any lobbying for watermark legislation or regulation. If any DECE studio or industry body representing a DECE studio (e.g., MPAA) breaches the foregoing agreement, watermark detection will no longer be required. In addition, DECE MC content providers and other DECE MC companies ("parties") agree to prepare a joint presentation suitable for submission and presentation to Members of Congress, Members of the European Commission, and, to Members of such appropriate legislative bodies in Japan and Korea; and, to conduct joint briefing of Members of Congress, EU Commissioners and other government officials regarding the DECE Ecosystem and the Watermark requirement. The presentation and briefing efforts will include the following key messages: (a) DECE Watermark obligations have been agreed to in the context of a commercially-negotiated business agreement; and, (b) the parties do not intend to seek nor to support government actions which would mandate or broaden screening obligations for the DECE Watermark. DECE MC Members agree that on or before [April 30, 2011], they will prepare a version of the joint presentation suitable for publication or presentation to legislative bodies/representatives set forth above.
  
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  Implementation and Licensing Terms:
  

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   Qualified Content Participants shall either cover or offset watermark implementation costs; method to be determined.
   
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   Detection obligations shall be contingent upon DECE becoming a first-party sub-licensor of the WM, or at a minimum successful negotiation by DECE of a RAND license such as AACS.  In addition, the detection obligation shall be contingent upon DECE successfully negotiating with Verance for the DECE bit in the WM prior to the commencement of the embedding.
   

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  Device Constraints: Devices for which watermark detection would impose an undue burden due to computing or power resource limitations [TBD] shall not be required to detect the Watermark.
  
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  Consumer Backlash. In the event consumer backlash [TBD, e.g., consumer support demands, claims, and legal actions] meets [Significant Threshold – to be defined], watermark detection will thereafter no longer be required.
  
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  Indemnity: MC content providers shall hold harmless and indemnify DECE and DECE licensees from third party suit, claim, proceeding (including in connection with claims/actions relating to IPR and consumer backlash) for any damages (including costs, attorney’s fees, and related claims processing and litigation expense).
  
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  Consumer Education: Studios to fund a “legitimate content” consumer education campaign commencing sufficiently many months before the Detection Date.
  
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  Consumer Response Center: Studios to fund and make available a consumer complaint/technical support resolution center for all territories where watermark detection is deployed.
  

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  Adaptive Streaming Encoding: All Content must also include the [TBD] additional adaptive bit rate files in the common file format.
  
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  No Interlace Encoding: All Content must not be encoded in an interlace format.
  

- DECE branding/marketing initiative and commitment to launch DECE brand/business:

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  Total Marketing commitment (Title-specific and DECE Brand) = $200M over period between DECE launch and [12/31/2012]. To be proportionally increased if Disney joins DECE.
  
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    Of which, $60M for DECE Brand launch via dedicated campaign(s); timing of spend during that period guided by marketing advisors, but at least 50% invested around consumer launch.
    
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    The remainder $140M to be Title-specific marketing (built into or incorporated with Title specific marketing programs); to qualify, marketing spend must be for titles that have been licensed to multiple DECE Retailers for HD distribution.
    

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  May embed, or have embedded, the DECE No Home Use State in versions of Audiovisual Content that should not be encountered in the consumer home environment (e.g., pre-release or working prints of a theatrical release, theatrical release prints, airline and non-theatrical public venue releases such as to cruise ships, military bases, etc.).
  

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  If a Content Participant embeds the DECE No Home Use State in a given Theatrical Release (commercially available to consumers in a cinema or theater on a basis other than for test purposes) in any country, then Content Participant must within fourteen (14) months release a substantially similar version (which may, for example, be a director’s cut, or have a changed aspect ratio) as DECE Content distributed online (“Substantially Similar DECE Version”) in such country of first Theatrical Release or the United States, as determined by Content Participant.
  

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  If Content Participant embeds the DECE No Home Use State in a given Theatrical Release of Digital Entertainment Content in any country of the world, and Content Participant undertakes a Theatrical Release of such Content in the United States on greater than one hundred (100) screens, then, within 14 months, Content Participant shall release a Substantially Similar DECE Version in the United States.
  

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  Where Content Participant does not itself have online distribution rights necessary to comply with the above requirement in the United States or in such country of Theatrical Release, Content Participant may satisfy its obligations by obtaining an understanding with a party having such rights that such party will comply with the requirements.
  

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  In the event of unusual circumstances that arise in the 14 months after Theatrical Release (e.g., commercial failure of the Theatrical Release or intellectual property rights issues that prevent publication of the Substantially Similar DECE Version), Content Participant shall be entitled to petition the DECE LLC for an exception.
  

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  If distributed online, such Audiovisual Content must include metadata that the embedded Audiovisual Content is not enabled for consumer home use, and encoded or formatted (by means other than the Watermark) so that it does not play back in normal consumer home use.
  

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  May only embed the No Home Use Mark in accordance with instructions by a Content Participant or Content Provider.
  

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  Licensed HD Devices become subject to screening and enforcement obligations at expiration of the thirty—six month Phase-in Period with an additional thirty-six month phase out of shipments of existing non-screening products.
  

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  Post-sunrise, Licensed HD Devices must screen for the Cinavia Watermark when accessing content for playback.
  

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  Screening must take place according to the Cinavia Specifications using either intermittent or continuous modes.
  

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  Screening applies to the audio portion of the content.
  

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  If the Watermark Detector associated with that Licensed HD Device sends a No Home Use Mark Enforcement Trigger Notice, the Product must take a DECE No Home Use Mark Enforcement Action.
  

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  the Action must be initiated within one (1) second .
  

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  in doing so, the Licensed HD Device must not provide any message or other direction to a consumer with respect to a Content Participant or Content Provider without the written permission of the particular Content Participant or Content Provider in relation to the specific work protected.
  

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  In the case of access for playback, the Enforcement Action is:
  

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  the stoppage of playback of such Audiovisual Content, such that further playback of such content requires that the user restart playback from the beginning of the content; and
  

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  display of a written message stating either “Playback stopped. The content being played is protected by Cinavia and is not authorized for playback on this device. For more information, see http://www.cinavia.com. Message Code 1” or “Cinavia playback restriction (1)” or a message with substantially the same meaning
  

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  provided that the Cinavia website URL (or an alternative Cinavia website URL that is established by Verance Corporation as applicable to a particular country or region) and message code number are either included without change in the message, or provided in the written operating instructions provided with the Licensed HD Device;
  
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  The message must be prominent clear, and legible; and remain present until a subsequent user input is received or for no less than 15 seconds
  
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  The message must not direct consumers to any party or address other than the Adopter itself, the Cinavia website URL as stated above, or a mail address provided expressly for this purpose by Verance Corporation, without the explicit written permission of that party nor state or indicate to the consumer that DECE, Verance Corporation, Content Participants or Content Providers (in general or by specific name) are responsible for the enforcement action taken by the Licensed HD Device; and
  

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  Adopter must comply with consumer notice requirements (whether national, state, federal, local or other) that may be applicable, if any, to sale or distribution of Adopter’s Licensed Products, because of the implementation of DECE Technology in such products.
  

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  Adopter is prohibited from distributing, or knowingly cooperate in distributing, a Licensed HD Device (or final consumer product into which such Licensed HD Device is incorporated) which is configured, as part of its standard user experience for the purpose of automating or otherwise directly facilitating the bypassing or avoidance of performance of these Watermark Requirements. Adopter agrees not to provide specific instructions for, or otherwise knowingly participate in, such configuration of such Licensed HD Device (or final consumer product into which such Licensed HD Device is incorporated) following its distribution, or advertise or provide specific instructions for use. If Adopter licenses its Licensed HD Device for incorporation in final consumer products made by third parties, Adopter shall use reasonable efforts to require such third parties to comply with the same restrictions.