I. Introduction and ScopeII. The Copyright Balance and PressuresA. The Existing BalanceB. The Balance UpsetC. Legal Attempts to Restore the BalanceIII. The Promise and Threat of Trusted SystemsA. Trusted Systems Architectures1. How Do Trusted Systems Work?2. Major Developers of Trusted Systems3. Potential ProblemsB. Trusted Systems and Copyright Economics1. Intellectual Products as a Public Good2. Optimal Provision of Public Goods3. Optimal Provision, Current Legislation, and Trusted SystemsC. Trusted Systems and Price Discrimination1. The Promise of Price Discrimination2. The Threat of Price Discrimination3. Possible ResponsesIV. Values and ArchitecturesA. Fair Use1. Value to be Protected2. Likely Impact of Trusted Systems3. Possible Responses4. TradeoffsB. First Sale1. Value to be Protected2. Impact of Internet Technology3. Likely Impact of Trusted Systems3. Possible Responses4. ConclusionC. Limited Duration1. Value to be Protected2. Likely Impact of Trusted Systems3. Possible ResponsesD. Subject Matter Coverage1. Value to be Protected2. Likely Impact of Trusted Systems3. Possible ResponsesE. Privacy1. Likely Impact of Trusted Systems2. Value to be Protected3. Proposals4. RecommendationsF. Freedom of Contract1. Value to be Protected2. Likely Impact of Trusted Systems3. Possible ResponsesV. ConclusionA. Will a laissez faire approach work?B. Strategy for Protecting Public InterestsDIGITAL RIGHTS ARCHITECTURES FOR INTELLECTUAL PROPERTY PROTECTIONLegal/Technical Architectures of CyberspaceJason ChicolaDawn FarberMami KaratsuJoseph LiuKarl RichterJohn TillyMASSACHUSETTS INSTITUTE OF TECHNOLOGYEthics and Law on the Electronic Frontier 6.805 / STS085 HARVARD LAW SCHOOLThe Law of Cyberspace: Social ProtocolsDecember 10, 1998TABLE OF CONTENTSEXECUTIVE SUMMARYPAPERI. Introduction and Scope..........................................................................................13II. The Copyright Balance and Pressures....................................................................16A. The Existing Balance........................................................................................17B. The Balance Upset............................................................................................19C. Legal Attempts to Restore the Balance............................................................20III. The Promise and Threat of Trusted Systems..........................................................24A. Trusted Systems Architectures.........................................................................251. How Do Trusted Systems Work?..................................................................262. Major Developers of Trusted Systems..........................................................313. Potential Problems........................................................................................33B. Copyright Economics and Trusted Systems.....................................................341. Intellectual Products as a Public Good.........................................................372. Optimal Provision of Public Goods...............................................................383. Optimal Provision, Current Legislation, and Trusted Systems......................40C. Trusted Systems and Price Discrimination.......................................................411. The Promise of Price Discrimination.............................................................422. The Threat of Price Discrimination...............................................................433. Possible Responses........................................................................................45IV. Values and Architectures........................................................................................47 A. Fair Use............................................................................................................47 1. Value to be Protected....................................................................................47 2. Likely Impact of Trusted Systems.................................................................493. Possible Responses........................................................................................534. Tradeoffs.......................................................................................................59B. First Sale...........................................................................................................601. Value to be Protected....................................................................................612. Impact of Internet Technology......................................................................623. Likely Impact of Trusted Systems.................................................................644. Possible Responses........................................................................................665. Conclusion....................................................................................................69C. Limited Duration..............................................................................................691. Value to be Protected....................................................................................692. Likely Impact of Trusted Systems.................................................................713. Possible Responses........................................................................................72D. Subject Matter Coverage.................................................................................771. Value to be Protected....................................................................................772. Likely Impact of Trusted Systems.................................................................793. Possible Responses........................................................................................80E. Privacy..............................................................................................................831. Likely Impact of Trusted Systems.................................................................832. Value to be Protected....................................................................................8523. Proposals.......................................................................................................884. Recommendations.........................................................................................90F. Freedom of