Systems that could implement the above scenario are already available. A number of companies offer just such "trusted systems" technology, which would enable content owners to place technological restrictions on what you can do with content accessed through the internet. For example, a company called Intertrust, Inc. offers such technology. IBM has also developed such technology. This article provides a good summary of such systems. Using such systems, content owners could restrict certain uses of their content; charge for other uses; charge by amount of time spent viewing, etc. Moreover, Congress is currently considering legislation that would give added boost to such systems by making it unlawful to circumvent anti-copying technology.
The question here is a broad one: Are these systems a good thing? How should the law respond to such technology? On the one hand, they certainly reduce the costs of preventing unauthorized copying. On the other hand, they can be used to do far more than simply limit copying. Should the law support these systems, as the proposals before Congress currently appear to do? Should the law be neutral, leaving it to hackers and others to find ways around the technology? Or should the law affirmatively limit the use of such technologies in order to ensure a broad realm of fair use?
Hypothetical 2: Technological Protection
Hypothetical 2: Sources
Back to Hypothetical 1: On-Line Contracts
Back to Hypothetical 1: Sources