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FTC Warns Against Deceptive DRM 159

Jane Q. Public writes "At the Federal Trade Commission's Seattle conference on DRM, FTC Director Mary Engle started off by referencing the Sony rootkit debacle, and said that companies are going to have to get serious about disclosing DRM that may affect the usability of products. She also said that disclosure via the fine print in a EULA is not good enough, and 'If your advertising giveth and your EULA taketh away, don't be surprised if the FTC comes calling.' Transcripts and webcasts are available from the FTC website." Update 18:13 GMT by SM: as Jane Q. Public was nice enough to diplomatically point out, the webcasts are no longer functioning, but transcripts are still available.
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FTC Warns Against Deceptive DRM

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  • by Samschnooks ( 1415697 ) on Friday March 27, 2009 @01:50PM (#27360493)
    I once was at a seminar where an attorney from the FTC was there. To make a long story short, it takes quite a bit of complaints before the FTC takes action. So, if anyone comes across a deceptive DRM, file a complaint with the FTC and then submit an article here on Slashdot and everywhere else you think folks would be interested, and tell them about it.

    The FTC won't act unless they know about it and if it's affecting a lot of people.

    Notice how those small time telemarketers who violate the Do Not Call List never seem to get caught even when you file complaint after complaint with the FTC; whereas, the big corps who do it are caught and paraded around the media?

  • TO READERS (Score:5, Informative)

    by Jane Q. Public ( 1010737 ) on Friday March 27, 2009 @01:59PM (#27360603)
    The Slashdot editors chose to change my article to state that webcasts are available at the FTC site. They are not. There were live webcasts but (at least on my Mac) the links only worked when the talks were live.

    So if you try to access the webcasts and it doesn't work, please don't blame me. The editors wrote that in.
  • by MrEricSir ( 398214 ) on Friday March 27, 2009 @02:05PM (#27360699) Homepage

    Complaints can be filed online here:
    https://www.ftccomplaintassistant.gov/FTC_Wizard.aspx?Lang=en [ftccomplai...istant.gov]

  • by Chyeld ( 713439 ) <chyeld@gma i l . c om> on Friday March 27, 2009 @02:09PM (#27360763)

    The ironic thing here is that while it is also something of an attack on the consumer, region locking is a completely seperate issue from DRM.

    Region Locking = You can only use content on devices sold in or for the same region you purchased the content in.

    DRM = You can only use content if you agree to give up certain rights you otherwise had and agree to allow the company selling the content to place technological locks in place on your property to ensure your compliance.

  • by corsec67 ( 627446 ) on Friday March 27, 2009 @02:11PM (#27360805) Homepage Journal

    Digital Restrictions Management.

  • Re:Region locking (Score:5, Informative)

    by Chyeld ( 713439 ) <chyeld@gma i l . c om> on Friday March 27, 2009 @02:42PM (#27361341)

    The thing about region locking is

    A: It's trivial in most cases to get around
    B: It actually serves a purpose, just not one that is immediately appearent to the consumer.

    In most cases, region locking is used for one and only one purpose, to allow a producer to find a distributor who is willing to sell the product in a specific region. Very few (if any) companies do their own worldwide distribution. Distributors want exclusivity in a region, and they have good reason for this. No one wants to sign a deal to distribute your product for $X if the guy next door is doing it for 1/2 $X because their area is too poor to be willing to pay $X.

    Because you know what'll happen? Your 'official' distributor will get his lunch eaten by a mob of opportunists who buy the product next door in mass quanities and then sell it in his area.

    And they'll be selling it not for 1/2 $X but $X minus a couple of cents, since they know the folk in his area are willing to pay more.

    Now that's not a defense for region locking as much as the reason why it exists. But frankly I'm alot more tolerant of DVD's that need a region unlocked player than I am of DVD's that require I uninstall programs from my machine and will only install three times before I have to jump through hoops with customer service.

  • Re:Sounds great! (Score:4, Informative)

    by MasterOfMagic ( 151058 ) on Friday March 27, 2009 @04:37PM (#27363063) Journal

    The flag is called the Image Constraint Token. It is in the standard, but the studios were holding off using it. However, my upscaling DVD changer from Sony(!) refuses to upscale DVDs with CSS except over HDMI with HDCP. Connected only with component video, it only acts as a progressive scan DVD player.

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