Thursday, January 9 3:00 PM - 4:00 PM Session B: DH8: Feature Distribution and the Threat of Internet Piracy - Evaluating the Short & Long Term Implications The statistics on Internet piracy of new feature releases can be alarming and unsettling. According to studies, there are hundreds of thousands of feature downloads each week. It is no wonder that film industry executives have been raising the red flag – understandably, they don’t want their industry to get Napsterized. Fortunately, from the successful box office numbers of the past year, the impact of Internet piracy has yet to be felt, but an all-digital cinema industry is coming and the Industry must prepare for it. Computers will always be more powerful, more consumers will have broadband, home theaters will be robust and PVRs and large-scale feature swapping may be the result. On the other hand, the news is not all bad. The technology industry has as much at stake in expansion of digital delivery of content as do the entertainment producers. More effective DRM packages are being developed and new and innovative subscription services are on the way. Is there a way to innovate out of the looming crisis? Is Internet piracy of feature films a show-stopper or simply an industry speed bump? Tom Temple, Internet Piracy, MPAA Motion Picture Association Russ Frackman, Partner, Mitchell Silberburg & Knupp Paul Kocher, President & Chief Scientist, Cryptography Research, Inc. Laurence F. Pulgram Partner, Fenwick & West, LLP Scott R. Campbell, Vice Consul, British Trade International, British Consulate-General Ian Ballon, Partner, Manatt, Phelps & Phillips LLP, Moderator IAN C. BALLON is the chairman of the Internet and E-Commerce Practice Group of Manatt, Phelps & Phillips, LLP, and splits his time between the firm’s Palo Alto and Los Angeles offices. Mr. Ballon concentrates on e-commerce, Internet-related and intellectual property litigation, licensing and strategic counseling. He is also the author of the 3-volume legal treatise, E-Commerce and Internet Law: Treatise with Forms, published by Glasser LegalWorks. A frequent writer and speaker on Internet and intellectual property law, Mr. Ballon serves on the editorial boards of The Cyberspace Lawyer, The Journal of Internet Law, Privacy and Information Law Report, E-Commerce Law Report, and Intellectual Property Lawcast and is regularly quoted on these subjects in general-circulation and industry publications. Mr. Ballon co-chairs both the Intellectual Property Working Group of the American Bar Association’s International Cyberspace Jurisdiction Project and the Practicing Law Institute’s annual Internet Law Institute in San Francisco and New York. In early 1999, he was named one of the top 20 California lawyers under age 40 by California Law Business magazine. In 2001, he was named one of the top new media lawyers in the United States by CyberEsq. Magazine and one of the 100 most influential lawyers in California by California Law Business. In 2001, he was also elected a member of the American Law Institute. Mr. Ballon received an LLM in International and Comparative Law (with an emphasis on international protection of intellectual property) from Georgetown University Law Center and received his JD in 1986 from George Washington University, where he was the Articles Editor of The George Washington Journal of International Law and Economics. He received his BA in economics and political science from Tufts University. Scott R. Campbell, Vice Consul, British Trade International, British Consulate-General: Scott Campbell is the Sector Specialist covering IT, Electronics and Communications industries in the UK/USA. Facilitates business development activities for UK and US companies, and research institutions by supporting the formation of strategic alliances, joint ventures and licensing agreements. Scott also supports investment and trade relations between UK and US businesses, professional trade associations, and regional trade and investment offices. Prior to his current position, Mr. Campbell was President - Vedalabs Inc., a digital media software developer focusing on products for PCs and Digital Set Top Box applications. Projects included working with IBM, Motorola and Excite@home Prior to that he was Director of Business Development - Lucent Technologies, where he was responsible for licensing Lucent's digital audio intellectual properties to key consumer electronics manufacturers and entertainment companies. Scott was spokesperson to the media and industry analysts for Lucent's proprietary technology and represented Lucent at Industry Standards initiatives. His other corporate positions included, CEO of Virtually Atomic, a management consulting service to UK media companies looking to adopt Digital Media production technology. Established policies and procedures for production, handling and distribution of digital assets and for the procurement of technology and services for companies including, Virgin Radio, Virgin Retail Group, Abbey Road Studios, EMI Music and George Michael. And prior to that Mr. Campbell was Managing Director, MediaSpec UK Ltd., a company which provided Digital Audio/Video workstations, training and support services to all major UK Broadcasters, Film Studios and independent production facilities. Clients included all BBC regions, Granada, Carlton, Pinewood & Sheparton Film Studios. Held exclusive agreement with Avid for Film product 'AudioVision' Paul Kocher is President and Chief Scientist of Cryptography Research, Inc. At CRI, he leads a research team that specializes in applying results from theoretical cryptography and computer science to solve real-world security problems. He has designed numerous cryptographic systems, including SSL v3.0, the world's most widely used encryption protocol. In addition to providing consulting services to numerous Fortune 500 companies, his research team at CRI is credited with discovering differential power analysis, designing the world's first non-classified DES key search machine, and conducting security evaluations that have caught hundreds of security flaws. He also leads CRI's hardware group, which specializes in designing and testing low-cost, high-assurance tamper-resistant integrated circuits. At CRI he is currently leading a major ongoing research effort to solve problems related to the theft of digital content. Prior to founding Cryptography Research in 1997, he co-founded ValiCert, Inc. (NASDAQ:VLCT), worked for RSA Laboratories, and earned a (completely unused) BS in Biology from Stanford University. His work has been reported in forums ranging from technical journals and Scientific American to CNN, National Public Radio, and the front page of the New York Times. Laurence F. Pulgram is a partner in the Litigation and Intellectual Property Groups of Fenwick & West LLP. In 2000, Laurence was one of the initial partners to open the firm's litigation presence in San Francisco, where the firm now has approximately 20 litigation attorneys. The firm's office in Palo Alto and Washington D.C. bring the total of litigation attorneys to approximately 100. Mr. Pulgram's practices emphasize intellectual property disputes and complex commercial litigation. He is presently representing SONICblue, Inc. and ReplayTV, Inc. in defense against four actions brought by the major television networks and movie studios contending that digital video recorders contribute to copyright infringement. He defended Napster, Inc. in landmark copyright litigation against approximately two dozen lawsuits in multi-district litigation in the trial and appellate courts. Mr. Pulgram has a substantial expertise in intellectual property disputes involving trade secrets, trade marks and trade dress, unfair competition and false advertising, and non-compete and employment litigation. He has also represented prominent technology and other companies in antitrust and unfair trade practices claims. His practice entails representation in all state, federal, trial, and appellate courts, as well as confidential arbitration and mediation. Mr. Pulgram graduated magna cum laude from Harvard Law School in 1983. He served as judicial clerk for Chief Judge Sam C. Pointer, Jr. in the United States District Court for the Northern District of Alabama until 1984, when he joined Howard, Rice, Nemerovski, Canady, Falk & Rabkin. After being elected a partner at that firm in 1989, Mr. Pulgram practiced in that firm's San Francisco office until 1999. Mr. Pulgram is a member of the American Bar Association's Section of Intellectual Property Law and Section of Litigation. He has previously chaired the Section of Litigation's Committee for the Minority Trial Lawyer, served on several Section task forces and has been chosen as Co-Chair of the Section's ABA Annual Meeting in 1997 and 2003. He is also a member of the San Francisco Bar Association, the Association of Business Trial Lawyers, and speaks regularly on intellectual property and litigation matters. Russ Frackman, Partner, Mitchell Silberburg & Knupp: Mr. Frackman is lead trial counsel to the record company plaintiffs in their landmark copyright infringement lawsuits against Napster, Aimster, and MusicCity. A litigator at Mitchell Silberberg & Knupp LLP since 1970, Mr. Frackman has combated content piracy for the record industry since 8-track tapes were hip.  Mr. Frackman's career experiences range from swap meet raids to recover pirated goods to establishing much the important case law used in today's Internet battles.  An expert in the areas of copyright law, content piracy, trademark law, and unfair competition, Mr. Frackman represents motion picture, record, and music publishing businesses, as well as individual actors, producers, agents, and writers.