Lack of DRM disclosure may violate Canadian law

Rich Fiscus
23 Sep 2007 8:40

A study from the Canadian Internet Policy and Public Interest Clinic (CIPPIC) at the Universite of Ottawa claims that DRM on various products, ranging from downloaded MP3s to productivity and security software violates Canadian law because users aren't adequately notified of how personal information is collected and used. It also indicates that Canadian law requires that consumers be allowed to opt of the collection and use of personal details.
"The privacy concerns with DRM are substantiated by what we saw," David Fewer, staff counsel with CIPPIC and the study's lead investigator, said. "In the Canadian marketplace we've found that there is simply widespread noncompliance of PIPEDA (Personal Information Protection and Electronic Documents Act)." Of particular concern to study authors was the failure of companies to indicate that personal details were being collected for DRM purposes in their privacy policies.
Christopher Levy, CEO of DRM solutions provider BuyDRM, doesn't agree with many of the conclusions of the report. "The focus of the DRM system is to encrypt a piece of media, manage the licence key, profile to that licence, and deliver it -- that's it," Levy said. "It's unfortunate that consumers have been misled by a lot of vocal critics because the truth is DRM is no more evil than the lock and key that's on your door, the alarm on your car, or the authentication system in your cell phone."
However, the lock on your door probably can't be used to distribute your address to other parties. Regardless of the legality of DRM measures which require consumers to provide vendors with personal information, there's no question a company could, if allowed by product licensing and the law, use customer information for purposes other than preventing piracy.
While this study may be presenting a view of DRM technology starting from an anti-business perspective, that doesn't mean the concerns raised aren't legitimate, although they may be somewhat exxagerated with regard to current industry practices.
Source: PC World

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