WHITE PAPER: TOWARDS THE CREATION OF A DIGITAL CONTENTEXCHANGEI. Executive Summary
. The Digital Content Exchange (DCE) is a patent-pending(US Pat. 10591416, priority date March 4, 2004)
method for facilitating an exchange of copyright-protected digital media in a commercial transaction. It is also a method for storageand enjoyment of media through on-line “cloud” access. The secure DCE on-line environmentverifies ownership of the digital item and rules out piracy
the item may be accessed by theuser from his cloud or, indeed, before it may be transferred from one user to another. The DCEenables authors of media (including, but not limited to: books, music and video content) tobecome their own direct distributors of the digital item. It allows consumers who buy books,music and videos to aggregate their collections and, therefore, provide a marketplace morepowerful than Amazon, eBay, Netflix, RedBox, and the New York Public Library.The DCE is owned by The Media Exchange Company, Inc. and includes the know-howof the inventor, who developed the invention based on a lifetime of experience in efforts of justthis sort, including as founder of Bridge Data (now part of Thomson Reuters). The book, musicor CD item is carried on a fully-transparent board of exchange similar to stocks.The DCE has a working application that has been successfully beta-tested at theDCE.com and is fully functioning (in music media items only) among a small group of stores,users and record-labels. Any interested party wishing to become a beta-tester may apply there todo so. Inasmuch as the DCE is at the heart of the businesses of Google, Apple and all mediacontent providers, its value speaks for itself.
II. Target Market
. In order to understand the value proposition in the DCE, onefirst has to fully understand the value proposition for the target market. The target market can beroughly divided up into five groupings:1.
Those who buy media (or who presently download media illegally).2.
Those who create media or distribute it.3.
Academic institutions that provide internet access for research purposes but in sodoing are required by Federal law to prevent their servers from being used forillegal downloading.4.
Institutions that lend media such as libraries, video rental stores and kiosks.5.
Entities that have a commercial interest in web behavior or consumer electronicssuch as Google and Apple.
III. Solving the fifteen-year old problem of how to monetize digital media
. Sincethe advent of the internet, the Music, Book, and Video (“media”) industries have been grapplingwith the problem of how to make money through on-line distribution and to simultaneously stemillegal file sharing. The results have been decidedly mixed. This is because the industries havenot been employing the DCE principle (see below) and its proprietary implementation.