Ottawa (ON) - Digital rights management (DRM) technology used in computer software and handheld devices may actually be illegal in Canada, according to a study from a public interest group.

The technology is mostly taken for granted now, but the Canadian Internet Policy and Public Interest Clinic (CIPPIC) says it is a violation of the country's privacy laws.

"In the Canadian marketplace we've found that there is simply widespread noncompliance of PIPEDA (Personal Information Protection and Electronic Documents Act)," said the report.  PIPEDA mandates certain stipulations that must be put into place if an electronic source receives any kind of personal information from users.

The CIPPIC says that DRM software collects these kinds of data from users and disseminates it to third parties without giving the users the option of opting out of this procedure.  The group also claimed that companies using DRM technology do not give adequate disclosure of this policy to the end user.

"If there's personal information collection use or disclosure going on, there has to be consent and the form of consent has to be appropriate to the circumstances," said the study's lead investigator David Fewer.

One example described in the report is Intuit's QuickTax software.  According to the CIPPIC, the DRM platform in QuickTax causes it to send Canadian residents' information to US officials, and there is no disclosure about that up front.

Christopher Levy, CEO of DRM Solutions, however, says the report is grossly misrepresented.  "I was shuddering as I was reading this report because I'm not aware of any company that sells digital media that sells their data to third parties," he was quoted as saying.  "It's unfortunate that consumers have been misled by a lot of vocal critics because the truth is DRM is no more evil than the lock and key that's on your door, the alarm on your car, or the authentication system in your mobile phone."

lock on door

Sep 21, 2007 11:50     

I think the problem with DRM is that it's their lock and our door. Hope I live to see the day when open source software takes over ending these bitter wars against piracy.
Ben report abuse vote down vote up Votes: +0

HAHAHA

Sep 21, 2007 11:53     

"No different than the lock and key that's on your door.." BS! Let's look at Bioshock, the latest and greatest game that has DRM issues.. will my house lock me out if I change the windows or take down a wall to make a room larger? NOPE! But Bioshock will (if it were a house), change too much hardware! And BAM! LOCK OUT, and send a photo of your game to get a new key! I hope something good comes out of the report. (I am a Canadian and don't believe in piracy - except the Duke Nukem map, that was fun).

Stemnin report abuse vote down vote up Votes: +0

Funny....

Sep 21, 2007 12:23     

I love this quote. "DRM is no more evil than the lock and key that's on your door, the alarm on your car, or the authentication system in your mobile phone." He just seems to forget that DRM is more like a lock and key on your door that you have no control over when you want to open that door and have to ask some third party permission to open it for you, even though it's your house.
Chris report abuse vote down vote up Votes: +0

drm

Sep 21, 2007 12:37     

"It's unfortunate that consumers have been misled by a lot of vocal critics because the truth is DRM is no more evil than the lock and key that's on your door, the alarm on your car, or the authentication system in your mobile phone." It funny last time I checked it was my choice weather or not to lock my door at night or install a car alarm in my car. this is more like sticking a security camera on the light post out side my house and watching to see what I'm going to do.

chris report abuse vote down vote up Votes: +0

Chris is right!!!

Sep 21, 2007 12:46     

We should totally listen to his unbiased opinion.
System48 report abuse vote down vote up Votes: +0

Good

Sep 21, 2007 12:55     

I hope that this interest group can get rid of DRM, at least in Canada (where I live). You never know, its legal to download mp3s and burn CDs in Canada.
gm0n3y report abuse vote down vote up Votes: +0

DRM - let's be clear

Sep 21, 2007 12:57     

Quote from article: "the truth is DRM is no more evil than the lock and key that's on your door" That is an outright lie. If the company that makes the lock and key goes out of business, you can still use your lock and key. If the company that makes your DRM product goes out of business or decides to stop supporting the product, you CANNOT use your product anymore. That is a critical difference. Any time you ever buy a DRM product, you should ask the question how mad you'll be when the DRM based product stops working. In my personal experience with DRM products, they have a working life of approximately 5 years (music software, music downloads, video games).

IdBuyThatForADollar report abuse vote down vote up Votes: +0

I can remove the lock on my door when I do not want...

Sep 21, 2007 13:02     

I can remove the lock on my door when I do not want it anymore. I chose to put the alarm on my car. Neither of these devices send a signal to someone I don't know recording my habits and identity without my known consent. Companies need to learn from Sony that all DRM does it piss off a lot of legal users. The people that are going to pirate software will continue.
Bogdan report abuse vote down vote up Votes: +0

DRM no more evil? rootkits anyone?

Sep 21, 2007 13:15     

I don't remember hearing about any lock and key that secretly imbedded itself into the door making part of it virtually impossible to remove. However I have heard quite a bit about DRM software doing such.
KAL326 report abuse vote down vote up Votes: +0

My door lock keeps it's secrets.

Sep 21, 2007 13:40     

My door doesn't tell anyone when or how often I use it. It's never once told a third party that I opened the door or who was with me. My key can be shared with anyone I choose. I don't have to get a neutral parties permission. Levy might be shuddering, but it's not for the 'reason' he states.
GZ report abuse vote down vote up Votes: +0

Pretty soon US will look like a restricted area whe...

Sep 21, 2007 13:59     

Pretty soon US will look like a restricted area where only who can afford will be able to defend freedoms and rights. The rest of the world will laugh and do whatever they want.
Canadian in US report abuse vote down vote up Votes: +0

Uhmm I think those analogies are wrong

Sep 21, 2007 14:52     

Dont get me wrong, I hate DRM! But we dont own the software we "buy", right? We license it. Therefore, the lock is to the house that the software owner owns. They let the people in when they license it. If people do "funny" things they can choose to lock their house. Mind you, the part I agree with, when I am in my house (ie my computer) they have NO right to see what I am doing there!!
Canadian in Canada report abuse vote down vote up Votes: +0

Licensing

Sep 21, 2007 16:43     

When I buy music, I am NOT buying a license to listen to that song as long as the company is around. I OWN that song, I don't have the right to distribute it for money, but I do own the copy that I have. This whole DRM fiasco (the concept itself) is complete bulls***.
gm0n3y report abuse vote down vote up Votes: +0

People do own software

Sep 21, 2007 18:54     

Like gmOn3y said, when you buy software, it's yours for life (and your sons life). You own the .exe file, but not the source code. You can delete it, move it around your PC, hack it to peices, etc., but you can't distribute it. I think it is 100% legal to run software you buy (not rent) with the Internet disconnected and legal to not register. I found a type of music you rent, like some ring-tones on cell-phones. After 3 months it's deactivated. Legal I guess, but I'll never get this, unless it's free. THG, I think there is some legal confusion, please make an article about this, US and International laws. Thanks!

Erric report abuse vote down vote up Votes: +0

End of DRM

Sep 22, 2007 00:45     

Look forward to the day where DRM is no more, it's a pain when downloading music, watching vids online Living in the US/
Drew report abuse vote down vote up Votes: +0

It is about time!

Sep 24, 2007 03:09     

It's about time some of the countries in the world decried the legality of publishers restricting the legal use of products which have been paid for by the consumer. I do not engage in piracy but do wish to use the products that I have paid for without the hassle of DRM roadblocks! Gene www.manilajournal.com
Gene report abuse vote down vote up Votes: +0

jumping on the bandwagon

Sep 24, 2007 08:51     

I have the keys to my house. I change the locks on it when I want to. I leave the door open when I want to. I have the keys to my car, no alarm on it, but if it had one, I would rip it out. My phone works no matter who I hand it to, and if it didn't, I wouldn't own it. You want my money? Hand me the keys.
BOM report abuse vote down vote up Votes: +0

COO of DRM Company

Oct 10, 2007 07:41     

I am the COO of Softwrap, a DRM company for PC games and software. I just wanted to give you a little inside information as to what we do at Softwrap. All information collected during the licensing or purchasing of any software is kept for internal support use or in the even that any refunds are required. The only other party that customer's details are passed onto are the publishers of the software who are actually selling the software. Softwrap simply facilitates the sale and licenses it'S DRM to the publisher. The publisher is legally allowed to contact the customer directly in order to offer further product support or inform them of new or similar products on offer. Customers can then opt out of receiving communication at that point. There are also Terms & Conditions which prospective customers need to agree to before trialing the DRM protected software and then again they agree to Terms & Conditions when actually making a purchase and submitting their data. This is standard amongst all eCommerce companies. If you have any questions, please feel free to email me back.

Richard Wienburg report abuse vote down vote up Votes: +0