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Divx works as a copy protection scheme because it is irrelevent whether or not the disc is an original or a copy; it is encrypted until the player releases its contents and bills its owner for the viewing. When a consumer buys a Divx disc, he is buying the media itself but only paying for one 48-hour viewing period. Divx represents a new pricing model: charging for the content apart from the media on which it is delivered. This model is not vulnerable to copied discs, because even these discs will require payment of a "pay-per-view" charge when they are inserted into the player.

For digital video, we feel that Divx is not an optimal solution because it fails on our criterion of minimum intrusiveness. The "pay-per-view" model is too simplistic; it fails, for example, to take into account whether or not the whole movie has been viewed since the first playback. It also requires a sacrifice in privacy, since a billing account with information on what videos have been viewed is a requirement for playback. The billing is tied to each Divx player, not to a person. If a viewer begins a movie at his own house and then moves the movie to a friend's house, they will both be billed for a viewing. Similarly, if a viewer opts to pay a one-time charge to purchase unlimited playback, he can only do so for his own player. Divx copy protection, we feel, are too intrusive to the normal act of watching a video to be considered a good solution.

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