December 14, 2006

Bill Gates On The Future Of DRM

Michael Arrington

189 comments »

Microsoft convened a small group of bloggers today at their Redmond headquarters to discuss the upcoming Mix Conference in Las Vegas. Highlights of the day included:

  • The receipt of a Zune as a gift (the third I’ve received from Microsoft - I now have all three colors)
  • Seeing the look on Gates’ face when he walked into the room and every single one of us had a Mac open on the desk in front of us - Niall Kennedy had also set up a makeshift wifi network using an Airport
  • An hour-long anything goes Q&A session with Gates

One of the questions that I asked was his opinion on the long term viability of DRM. I don’t hide the fact that I think DRM isn’t workable, and actively support DRM-free music alternatives such as eMusic and Amie Street. The rise of illegal or quasi-legal options like AllofMP3 and BitTorrent ensure that users have plenty of options when it comes to DRM-free digital music.

Gates didn’t get into what could replace DRM, but he did give some reasonably candid insights suggesting that he thinks DRM is as lame as the rest of us.

Gates said that no one is satisfied with the current state of DRM, which “causes too much pain for legitmate buyers” while trying to distinguish between legal and illegal uses. He says no one has done it right, yet. There are “huge problems” with DRM, he says, and “we need more flexible models, such as the ability to “buy an artist out for life” (not sure what he means). He also criticized DRM schemes that try to install intelligence in each copy so that it is device specific.

His short term advice: “People should just buy a cd and rip it. You are legal then.”

He ended by saying “DRM is not where it should be, but you won’t get me to say that there should be usage models and different payment models for usage. At the end of the day, incentive systems do make a difference, but we don’t have it right with incentives or interoperability.”

These quotes are rough - I was typing fast but it was not an exact transcript. Still, it is interesting insight from a man who is in a position to shape the future of digital music models.

There’s lots of good coverage from other bloggers attending as well. See Steve Rubel, Molly Holzschlag, Ryan Stewart, Niall Kennedy and Liz Gannes. Todd Bishop also has a nice roundup.

  • Sphere It

Trackbacks/Pings (Trackback URL)

  1. Gates vs Macs vs DRM « Lauro Moura
  2. Bill Gates And Macs - MuhammadK.com
  3. Bill Gates parla del DRM in mezzo ai Mac user | Fed’s Bolsoblog
  4. Nerd Approved - News and Reviews - » Bill Gates Does Not Support DRM
  5. Bill Gates told me to just rip it » Mathew Ingram: mathewingram.com/work
  6. TechCrunch Japanese アーカイブ » Bill Gates、DRMの未来について語る
  7. GigaOM » Bill Gates on the Future of Web Apps
  8. BrianAndPamela.com » Arrington reports: Gates says DRM is lame
  9. Bill Gates On The Future Of DRM at real simie
  10. Bill Gates and the Bloggers « Joe Duck
  11. Just Another Mobile Monday » Bill Gates Says DRM Has ‘Huge Problems’
  12. 拉阔:娱己后娱人 » 微软视Bloggers为座上宾
  13. » Gates Says Just Buy a CD and Rip It » Blog Archive   Alice Hill’s Real Tech News - Independent Tech
  14. Basement Tapes » Bill Gates On The Future Of DRM
  15. CE-Oh no he didn’t! Part XXI : Gates tells consumers to ditch DRMed tunes, buy CDs » portablemp3players.info
  16. Bill Gates admits DRM is bad for users « Building Ambisonic Bootlegs
  17. The Technology Free Press » Blog Archive » Did Bloggers Miss Opportunity To Ask Bill Gates Tough Questions?
  18. Marco Raaphorst - componist en geluidsontwerper » Blog Archive » Bill Gates vertelt over de ellende van DRM
  19. Microformatos, empleo, portales inmobiliarios y Bill Gates
  20. Gadget Lounge » Bill Gates Buys Blogger Buzz
  21. netzpolitik.org: » Bill Gates kritisiert DRM? » Aktuelle Berichterstattung rund um die politischen Themen der Informationsgesellschaft.
  22. “People should just buy a cd and rip it” at Tom Raftery’s I.T. views
  23. Katnoodle: by Richard Cassidy » Blog Archive » Microsoft Bill Doesn’t Like DRM
  24. Morris DigitalWorks Extreme Lab Blog » Blog Archive » Microsoft Butters up Bloggers
  25. Bill Gates sugere piratear CDs « Repórter Net
  26. Quick » Bill Gates: ‘DRM zuigt’
  27. Girobit Blog Personal » Blog Archive » Bill Gates: “No compres música con DRM; copia el CD”
  28. badempire » Rip Away
  29. beforeyoukillyourcomputer.com » Blog Archive » Bill Gates On The Future Of DRM
  30. Mr. Gadget » Blog Archiv » Die Kuschel-Blogger bei BillG
  31. Yoono Adds Blog Suggestions at Swiss Podcast Directory and Blog
  32. rebel mac. » Blog Archive » Techcrunch: Bill Gates On The Future Of DRM
  33. CrunchGear » Blog Archive » Zune’s DRM, WiFi Opened By Swedish Teen?
  34. Bill Gates üzülüyor mu seviniyor mu? - Mac Dünyası
  35. Bill Gates’den Gençlere DRM Nasihati › Osman S Börütecene
  36. Magic Statistics - “I accept no responsibility for statistics, which are a form of magic beyond my comprehension.” — Robertson Davies » Bill Gates: “Just rip it”
  37. My Bag of Beans » Blog Archive » Bill Gates on the Future of DRM
  38. Shift Computer Solutions - Computer repairs and solutions in Brisbane, Australia
  39. Podcasting News » Bill Gates On Using Bloggers To Pwn The Media
  40. [ indsæt smart navn her ] » Blog Archive » Er DRM (endeligt) på vej ud?
  41. its about time» Blog Archive » links for 2006-12-14
  42. You Did What??? » Bill Gates recommends against buying DRM music
  43. Hummingbird Mentality » Blog Archive » Why eMusic doesn’t suck
  44. My Gadget Info » Blog Archive » Bill Gates Hates DRM: Not Quite Enough
  45. Xbox 360 Forum - Bill Gates schockiert ber hohen Mac-Anteil bei Bloggern ... weitere Themen - Xbox 360 Forum
  46. datenschmutz.net
  47. Kolz Blog » Blog Archive » CE-Oh no he didn’t! Part XXI : Gates tells consumers to ditch DRMed tunes, buy CDs
  48. Memex 1.1 » Blog Archive » Gates on the future of DRM
  49. Longrider » Quote of the Day
  50. All in a days work…
  51. Bill Gates On The Future Of DRM » Technovia
  52. BLOGical Thoughts » Monday, 18 December, 2006
  53. Newslens Podcast Episode 7 at Wiggler
  54. In the mind of KCorax :: Newslens Podcast Επεισόδιο 7 :: December :: 2006
  55. adrift.blog » Mac Domination
  56. Digerati Studio Limited - Blog » Bill Gates - Mix Conference, the future of DRM
  57. Teriyaki’s Donut » Spoonman
  58. das ist Microsoft at Caveat Emptor
  59. FairUseLaw.com » Blog Archive » Microsoft Against DRM?
  60. On Message » Blog Archive » Jennifer Urban: “Digital Rights Management is broken”
  61. Gizmoz at Serendipitia
  62. dave liu dot com » Dave’s Picks: Internet and Digital Media Articles
  63. dave liu dot com » Internet and Digital Media Articles of the Day
  64. Karel Donk » Archive » Cost Analysis of Windows Vista Content Protection
  65. TecnoCAST » Blog Archive » Tecnocast 5 - Todos contra DRM
  66. Marc’s Voice » Blog Archive » New kind of Brands
  67. geekMethod.com » Blog Archive » Episode 10 - Dude, look at her jumper - that means she wants it
  68. Digital control round-up at fulminate // Architectures of Control
  69. Remixtures » P2P: o ano de 2006 em análise
  70. topicalhuman.com » Blog Archive » Bill Gates admits DRM sucks
  71. 17 dots » Blog Archive » 2007: The Year of Digital Music
  72. Reality Me » Why should I use your broken music?
  73. SPORTS NEWS » Apple’s Stance on DRM Is Rotten to the Core
  74. Techcrunch » Blog Archive » Sonos Now Plays Microsoft DRM’d Songs
  75. Bill Gates on Web Apps
  76. nicozorn.com Marketing-Weblog » Archiv » DRM am Ende?
  77. TalkCrunch » Blog Archive » Talk With Yahoo Music Execs on the Fate of DRM
  78. The Inevitable Death of DRM
  79. Da PingMachine.org Website » Archive du blog » Gates et les DRM
  80. Tecnoliberal » Lo que Windows Vista esconde: El maravilloso mundo del DRM
  81. malcom’s blog » Blog Archive » Voglia matta di una Vista
  82. BBC and platform independence (aka “First post to Planet Ubuntu”) at tibsplace.co.uk
  83. Former Yahoo Music GM Dave Goldberg Joins BenchMark Capital
  84. Hardware 2.0
  85. Mr. Gadget » Steve Jobs: Musik ohne DRM beste Alternative für Verbraucher
  86. Bill Gates On The Future Of DRM | Saurabh Dutta
  87. buying stamp online
  88. 'ILLEGAL

Comments

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  1. Rajeev Vashsisht

    I think what ever the new technology a standard should first be agreed upon so that the consumers don’t get a raw deal.

    http://www.tekno-world.blogspot.com

  2. Simon

    Shame you didn’t get a picture of Gates’ face when he walked into the room full of Macs. That would have been priceless.

  3. SearcH EngineS WeB

    Seeing the look on Gates’ face when he walked into the room and every single one of us had a Mac open on the desk in front of us

    The soon to be, most famous quote of the year 2006 :-D

    OMG: This will follow both you and Bill for yearsss……

  4. Fashion Industry Ceo

    Techcrunch=Microsoft of Blogs….Michael Arrington=Bill Gates…;)

  5. Anton Antich

    *the ability to “buy an artist out for life” (not sure what he means)*

    I think what he meant (or it’s what I’d like to propose anyway :)) is a model similar to software: if you buy a “license” once for, say, White Album, you should be able then to get it however many times you like (for your personal use) either by downloading (free then) or by CD / vinil / DVD etc - for the price of covering production / distribution costs only.

    The problem with sharing remains, but it remains with software as well and somehow we manage.

  6. Corey Spring

    His short term advice: “People should just buy a cd and rip it. You are legal then.”

    Something about that statement coming from Bill Gates just doesn’t sound right.

  7. Sylvain

    Quite funny coming from someone who created DRM as the way to go for digital publishing….

  8. franticindustries

    Every time a head of a big company criticizes some of the company’s strategies or products like he doesn’t have anything to do with it - in this case DRM - I have a mental picture of an old, tired man in a huge office overlooking an enormous field of machines - working tirelessly and producing money - over which he has no real control of anymore.

  9. Riaz Kanani

    I would love to know what he was thinking when he saw all those Macs..

    I wonder if the buy an artist out for life thing was the ability to say “I love this artist” I want to pay X and have access to all his music at no further cost. That would be an interesting concept..

    “People should just buy a cd and rip it. You are legal then.”

    Wonder what his Windows Media DRM partners think of that quote - right now though, they seem like they are being ditched for the Zune platform in any case..

  10. Mark Smith

    Mike,

    Can I have one of your stockpile of Zunes, please???!! ;-)

  11. Ty

    Mike - can I have the other one of your extra Zunes? It would make a great Christmas gift from you to a total stranger, and I would totally appreciate it!! When’s the last time you gave away a Zune to someone you didn’t know but who’d be eternally grateful?

  12. Bubbaj

    Hi Mike,

    I dont want a Zune, but since your in the mood for giving - can I make your babies?

    PS - im a man?

    ;)

  13. Gonzague

    I would love to see Gate’s face when he entered the room :D

  14. InViN

    CAn I have a free Zune too? lol

  15. Timothy Campbell

    My respect for Bill Gates has now been slightly increased.

  16. xxdesmus

    I could really use a Zune. Actually, I am working on an add-on for the Zune and having one on hand would be incredibly useful.

    I am a poor college student so I can’t exactly just run out and buy one neither.

  17. webonics

    I’m glad to hear Bill Gates make such a statement regarding DRM. With Bill and Steve pushing back on the RIAA and MPAA along with the consumer audience, the prospect for changes in DRM methodology certainly have a brighter outlook.

  18. Connecty

    Michael about the extra Zunes:

    Sign them with a CD marker pen, sell it here or E-Bay and donate the money to charity.

    I guess that people would love to have a Zune signed by you and touched by someone in Microsoft.
    You get credits for that, call more attention to you and your blogs, and will create news all around the Blogosphere kingdom, and charity will be thankful.

  19. Riaz Kanani

    i think edgeio might be the more appropriate place for Mike to sell them ;)

  20. Erik Herz

    Mike,

    What would you propose as an alternative to DRM?

    I think we need to focus on DRM standards like ISMACrypt and OMA. An open source implementation of these standards has been contributed to SourceForge here: http://sourceforge.net/projects/openipmp

    http://podslug.com/blog/?p=78

  21. drdrew

    I’m happy to hear that one of the heads of state regarding drm is admitting it’s flawed. Hopefully this was just not lip service to spread holiday pr cheer to sell more zunes and something will actually be done about it.

    I don’t think I’m alone in saying that with everything the mpaa and riaa, etc has put the consumers through that we really care about the legalites anymore. Making valid, purchasing consumers pay a “theft tax” is about as stupid as paying for “uninsured motorists”. Neither benefits the consumer nor does anything to help rectify the situation.

    Hopefully in 2007 we won’t be rehashing these conversations using the term “DRM 2.0″. [shudders]

    Andrew

  22. Adrian Keys

    “People should just buy a cd and rip it. You are legal then.”

    Are you serious…Bill….nah….

  23. Adrian Keys

    His short term advice: “People should just buy a cd and rip it. You are legal then.”

    “Something about that statement coming from Bill Gates just doesn’t sound right.” - Corey

    Corey…didnt see your comment before I wrote my first…but again…my exact sentiments…..

  24. SG

    This is amazing. DRM is completely downplayed for the media content. I am surprised that a person (hard core capitalist, which is a great thing) believes that DRM is not going to work. I agree that the current DRM is not working as the models have changed significantly. We need a new DRM model, one which scales at the level where hundreds of millions of copied of the same content can be protected or controlled-distributed so that the rightful owner of the content gets the recognition.
    You folks that the music and the movie industry is going to go for ir. That fact that it allows me to download movies/music etc for a particular dollar charge it going to evaporate. I think not.
    The market needs a new solution. Maybe Microsoft will not be in the position to do it. Some others will.

    Accept the fact. Just because we do not have a solution now does not mean it is not going to happen. It will happen and will be a evolutionary-revolution (65% evolution, 35% revolution).

    My strong sentiments about DRM. Apologies if I hurt anybodies feelings in advance.

    sganguly@yahoo.com

  25. Dr. Phil

    This is incredible. Some of the most influential bloggers/thinkers get 60 minutes with Big G….and you guys ask questions like:

    Whats on your Xmas list ? What did you want to be when you grew up? (these questions I’ve picked up from Steve Rubel’s site)….

    Even Big G must be wondering — are these guys really the most influential thinkers / bloggers in the industry today…What has the world come to.

  26. pat

    you do yourself no favors at all in that post, especially after yesterday’s debacle… ‘i’ve got all three zunes for free!’. Well, lucky you. Like the other commenter said, auction them for Child’s Play or something. I think TC is bringing in enough cash atm that you don’t really need ‘em. And hell, show some awareness of the fact that MS are bribing you with all this. Just admitting it gets nowhere. YOU STILL TOOK THE GIFTS. You were still influenced by it all. Doesn’t matter than it’s MS. It’s a freebie.

    I guess it just fits with all the ’sponsors’ and ‘partners’ that seem to have become the main theme of this place recently…

  27. pat

    yeah, dr phil. I’m with you on that one. MS softens ‘em up with zunes and a promise of time with Bill, and they soft-touch him. I guess that’s what you get from self-important bloggers. I mean, it’s pretty pathetic that these people couldn’t see they were being shaped and prodded and softened up by MS. Just look at the way they’re describing the group that was assembled by MS:
    Steve Rubel: “online influencers”.
    Liz Gannes: “I’m up at Microsoft HQ with a group dubbed “leaders in various aspects of the web community””
    Naill Kennedy (count the “I”s in in his post: “I spent an hour today with Microsoft co-founder Bill Gates…”

    Christ, if the best these people can do is think they’re going to offend Bill Gates by using *gasp* Macs in front of him, it’s pretty sad that these people do have such an audience. MS can feel rightly pleased with themselves and the write-ups they’ll get from this little jolly.

  28. Dave G.

    Geez…an hour of face time with Bill Gates and this is all the insight we get? Bill thinks DRM is not perfect. Sounds like some real hard hitting questions from the bloggers (heh)…I hope part 2 is coming.

  29. other

    ” The soon to be, most famous quote of the year 2006 :-D

    OMG: This will follow both you and Bill for yearsss…… ”

    Uhh, right, because Bill Gates doesn’t know that media-related people mostly use macs… yea, that’s how he became the richest man in the world, by being oblivious to the market. Sigh.

    I agree with Dave G - sounds like you guys blew this great opportunity. Also, does your fancy mac not come with a mic that you could’ve recorded Bill with so that we didn’t get some half-assed, high-school-journalistic “well this isn’t an exact quote” BS?

  30. Morha Shazam

    so lets see - mike writes a post about drm - then somehow gets invited to meet gates - wonder if one has anything to do with the other

    then he has the fiasco of yesterday - who knows who caused it

    and today he starts his post by saying - na na poo poo- i got 3 zunes, you have none.

    lame - i agree with the others about donating the zunes… oh well.

    i guess he could thank us, the people who made him.

    disappointing, esp. after all his comments that we should feel emotion about from him yesterday.

  31. graphicartist2k5

    i don’t agree with the whole drm scheme at all. why? because the artists that make the music are not being considered when drm programs are added to all the new mp3 players that will limit what types of mp3 players their music can be played on. if you ask me, which you should, musicians should get at least 75% of the money that is made on the songs they write and perform, if not the full amount. forget about “omg, peoplez downloading teh muzic r teh evil!!!1!!” and start paying more attention to “what about paying the artists for the music they make UP FRONT, without all of the usual bullcrap that’s involved in the whole politics of being on a record label.

  32. Morha Shazam

    btw, can anyone say PAYPERPOST? three zunes over time worth about what $750 for a few posts… hmm and we just fired someone over ethics

    gifts are still valuable in the eyes of the law and tax office.

  33. Western Infidels

    I think you mean: “…interesting insight from a man who has repeatedly failed to shape the future of digital music models.”

  34. lemon obrien

    >>I would love to know what he was thinking when he saw all those Macs..

    almost all press people use macs. I used them in journalism school in 1990.
    graphic artist are the same way; while animation is windows. its the tools and the industry; macs are good at type setting, layout, graphics…

    so, i think Bill was use to it.

  35. Phillip Roncoroni

    “Also, does your fancy mac not come with a mic that you could’ve recorded Bill with so that we didn’t get some half-assed, high-school-journalistic “well this isn’t an exact quote” BS?”

    All they would’ve had to do is open Quicktime and start recording with the built in iSight/mic.

  36. Shaze

    I am so baffled when I see people listening to iPods, or using a MAC. They have to be the stupidest, most technologically ignorant people on the planet. To be sucked into the biggest marketing SCAM alive; you buy and iPod or a Zune, you support DRM. Now there are HUNDREDS of good plug and play digital music players out there; that are cheaper, have a better interface and work perfectly on EVERY OS. (Cowon, Creative etc) They even support DRM, just not exclusively like the Zune or the Pood.

    You deserve all the hassles and bullshit that comes with your closed systems, you morons.

  37. shinderpakk jandu

    This will all end with crying

  38. NoneGiven

    From the Department of Unintentional Hilarity/Truth Telling:

    “Gates didn’t get into what could replace DRM, but he did give some reasonably candid insights suggesting that he thinks DRM is as lame as the rest of us.”

    I think you meant to write “as the rest of us DO.” Instead, you wrote that Gates thinks that all the bloggers in the room, along with DRM, are lame.

  39. Nate

    Hey I setup this poll @ pollburner.com what do you all think about DRM?

    http://www.pollburner.com/take.....1edf233e51

  40. Dr. Frustrated

    Are the real culprits the DRM technology providers like Microsoft and Apple or the studios and the record labels who wield and impose the various DRM rights and restrictions on consumers?

  41. Balaji

    Forget the current DRM and instead work on the technology that would make policing easier. Just the fear factor alone would do the magic.

  42. Yehudah Goldstein

    The brown Zune looks like a turd.

  43. Bryan

    “The problem with sharing remains, but it remains with software as well and somehow we manage.”

    I think that while the problem still exists with software, there are so many “free” copies floating around that most people dont need to buy. Just imagine how much software comes on that new Dell or HP system. You got your copy of Windows, one of the many CD burning programs, Works or Office, and a web browser. For most people - thats all they need.

    I know my mom just wants to use AOL, AIM, Word and a web browser. She doesnt care if its IE or FireFox or if she burns a cd with Nero or Sonic. My younger siblings just want to put music on their iPods - they dont care where it comes from and to be honest, they dont even know that its “illegal” to do so the way they are doing it.

    As far as I am concerned, music will always be way more pirated than software. Maybe Bill is right and we haven’t figured it out yet, but DRM is here to stay at least for a few more years. I just use AllOfMP3. Been using it for years and I find almost every album I need. Gotta love that place!

  44. Oliver Dueck

    As an iTunes Store customer who has purchased at least a couple hundred songs over the past couple years, I really don’t have a problem with Apple’s DRM. I can burn songs to CD, and I can play them on up to five computers. To me, that is very reasonable.

    My only complaint is that I can’t burn purchased songs onto an MP3 CD for use in my car, but there are ways around