DIGITAL BROADCAST CONTENT PROTECTION MB Docket No. 04-59

PRESENTATION TO FCC APRIL 2, 2004

Content End creators Technology: "Today's evolving Digital world" consumers CREATION – DISTRIBUTION – ACCESS From camera to consumer Theater Film print Electronic/ Traditional/ physical Digital Production/ distribution cinema Post- production

Home DVD DVD replication distribution Media Convergence PC, TV +…, Phone Asset Content Management management

Broadband Out of home Broadcast •Cable Mobility Capture • Satellite • Terrestrial •Telco's Office (internet, Network 3G, WIFI, Services VDSL) Professional solutions

Common customers – Shared technologies, equipment and processes A SYSTEM WHOSE TIME HAS COME

ƒ Authorized Domain System – Easy for the consumer to use – More comprehensive than “Link” technologies – End-to-End Solution ƒ Smart card technology now widely deployed – CableCARD – DBS Security Cards ƒ Rapidly growing base of digital televisions and home networks SMARTRIGHT PARTNERS

Companies expected to participate as members of the SmartRight Licensing Authority include: ACCOMPLISHES FCC’s BROADCAST FLAG OBJECTIVES

ƒ Offers secure and redundant protection of DTV content

ƒ Prevents indiscriminate unauthorized redistribution over the Internet

ƒ Fulfills the consumer’s expectation and enjoyment of digital TV

ƒ Will be licensed on reasonable and non-discriminatory terms OVERVIEW

ƒ SmartRight is an encryption-based digital broadcast content protection system – Prevents indiscriminate redistribution of protected DTV content over the Internet – Permits secure redistribution within an authorized domain of devices known as a “Personal Private Network” (PPN) – Provides “end-to-end” protection from the moment content is received and throughout its movement through the PPN Eric Diehl Worldwide Security Domain Manager Thomson STATE-OF-THE-ART, REDUNDANT SECURITY

ƒ SmartRight incorporates multiple redundant security features to protect DTV content – Attack-resistant cryptographic protocols ƒ Highly secure, 128-bit AES cipher – Renewability ƒ Tamper-resistant, secure modules – Optional “Copyright Watermark” ƒ Protects analog output content ƒ Prevents peer-to-peer network distribution ƒ Detection only when rendering TAMPER-RESISTANT SECURE MODULES

ƒ SmartRight uses embedded or removable, tamper- resistant Secure Modules ƒ SmartRight removable modules incorporate – National Renewable Security Standard (NRSS) cards, or – ISO-7816 “Smart cards” ƒ Secure modules include a: – Converter Module (in a Reception Device) – Terminal Module (in a Display Device) PERSONAL PRIVATE NETWORK

ƒ The SmartRight PPN is composed of locally- and remotely-located SmartRight-compliant devices – Local PPN ƒ At least one Reception Device ƒ A reasonably-limited number (such as 10) of Display Devices ƒ Optional Storage Devices – Remote PPN ƒ Includes consumer’s SmartRight devices in a car, second home, office, mobile devices PERSONAL PRIVATE NETWORK

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BROADCAST FLAG ENVIRONMENT BROADCAST FLAG ENVIRONMENT

ƒ SmartRight within the context of the Broadcast Flag: – Unmarked Content ƒ Freely copied, stored and redistributed without restriction – Marked Content ƒ Freely copied, viewed and securely redistributed within the PPN ƒ Easily exported to other FCC-authorized Broadcast Flag technologies ƒ Cannot be indiscriminately redistributed over the Internet in a usable (i.e., viewable) manner –SmartRight always screens content for the Broadcast Flag HOW PPN WORKS WITH UNMARKED CONTENT

MAIN HOME SUMMER HOME THIRD PARTY HOME

INTERNET / DVD

INTERNET / DVD HOW PPN WORKS WITH MARKED CONTENT

MAIN HOME SUMMER HOME THIRD PARTY HOME

INTERNET

INTERNET Internet ? DVD RENEWABILITY AND REVOCATION

ƒ Renewability – In the case of a “class attack,” SmartRight provides true renewability ƒ Revocation – Three-level revocation where only individual devices are compromised: ƒ Revocation of a specific Smart card ƒ Revocation of a PPN ƒ Revocation of a Display Device – Revoked entities are tracked by the SmartRight Association INTEROPERABILITY

ƒ Interoperable with: – All FCC-approved Broadcast Flag technologies ƒ Import or export of marked content – All interfaces (IP, WiFi, Firewire, USB, etc.) – All multimedia formats such as MPEG-2, MPEG-4 or mp3PRO, etc. ƒ Protects content delivered via: – Cable, DBS, Telco/broadband, etc. – Prerecorded media (e.g., DVDs) LEGACY EQUIPMENT/CONTENT

ƒ Preserves functionality of legacy equipment –Analog TVs – Early adopter HDTVs – DVD players ƒ Preserves consumers’ content libraries LICENSING

ƒ SmartRight is licensed on a reasonable and non- discriminatory basis ƒ Provisions include: – Limitations on changes to the specification and compliance rules – Option for adopters with essential patents to preserve their IP rights – Self-certification by adopters – Allows consumers to contest revocation