Marketplace Incentives to Prevent Piracy”: An Incentive for Security? L. Jean Camp 79 JFK St. • KSG • Harvard Cambridge, MA 02138 jean_camp@harvard.edu 617/496-6331 Harvard University What is security? Proposed legislation and past arguments, embodying the perspective of the owners of high-value content, call for a reconsideration of security for the purpose of copy control. Such arguments and legislation would require that content ownership be enforced as content passes through the network and is stored on the desktop. Proposals to install mandated copy controls for the protection of distributed copies of high-value content have been called a step towards a secure network by some and a serious threat to security by others. In this workshop I propose that the creation of a market for the trade in security vulnerabilities could complement content control or undermine remote control of distributed content. I will further argue that proposals to implement hardware controls on content where one person has ownership rights through privacy rights or intellectual property rights mirrors the debate between the end-to-end argument and the brave new network. Could the previously proposed mechanisms for increasing security increase or decrease the control of content owners? There is an argument for either perspective. Thus here I recall the original proposal for a market in vulnerabilities, and offer arguments that market incentives for security can increase or decrease the control of content owners. In previous work Catherine Wolfram and I proposed a market for vulnerabilities. The basic concept is that a market requires a commodity, and security is too difficult to define. In that work a vulnerability was defined as: • A technical flaw allowing unauthorized access or use • Where the relationship between the flaw and access allowed is clear • Which has been documented to have been used to subvert a machine Here I reconsider that work in the face of competing claims for rights to actions in consumer-based electronics. In particular, in the workshop, I seek to answer questions about how vulnerability-based market incentives can function in the face of mounting concerns over intellectual property. (The other primary open issue identified as unsolved in the original paper, pricing open source, is not addressed here.) The powerful community of owners of high value content seeks a new definition of secure, which will address the lack of marketplace incentive to prevent piracy. Were the vulnerabilities market adopted, would there be such a marketplace incentive? What elements of ownership might be protected and what elements might be at risk? First, I argue that the creation of market incentives for secure machines can enhance the ability to exert control over content. Without secure machines, when not even the owner of a machine can exert control, there is little or no hope that distant owners can exert consistent control. The ability to lock a part of a machine means that content controls can be created. This argument complements the perspective that security is in opposition to the end-to-end argument. If allowing users to manipulate their own machines is to require naïve users to secure their own machines, then enhancing security inevitability requires removing the power from users. Thus enhancing security might enable a set of secure APIs that cannot necessarily be called by the users. In this case, securing the content from the malicious or careless user would clearly be enhanced by increased security. Alternatively I can argue that the creation of a market incentive for secure machines will decrease the power of content owners. Security gives consumers the power to limit the information in his or her own machine, as well as the information entering and leaving the machine. The proposals for control of owned content inherently require that the owner be able to subvert the consumer’s machine to detect, prevent, or reverse illegal or unauthorized consumer copying. The ability to control information entering and leaving a machine implies that the user can prevent the reporting and auditing processes preferred by owners of high-value content. The ability to prevent the co-called “phone home” auditing processes undermines the strategy of user surveillance to prevent user copying. Thus creation of market incentives for security would undermine the goals of owners of high-value content. The ability to alter internal controls without fear of a resulting subversion can encourage user innovation and risk-taking, for example encouraging active participation in peer-to-peer systems. Such systems are most widely the subject of debate because of the ease of exchanging files, and such files might include high value content. Thus a market for security based on the trade of commodity vulnerabilities can create incentives which complement or undermine the goals of owners of high-value content. Therefore my goal in participation with the workshop is to discuss how market-based incentives to secure machines might interact with the drive to prevent illegal copying of high-value content. The argument that market incentives are needed has been clearly argued in previous work, and implicitly by the creation of this workshop. However, the implementation of such a market may create incentive s for end-to-end user-empowering mechanisms, or create incentives to constrain user behavior. This work was funded in part by NSF CAREER Grant # 9985433 and a grant from the East Asian Institute at Harvard.