Media firms concerned over the potential misuse of intellectual property rights in a multi channel world

| Press release
Study from Capgemini and SAP reveals complexity and lack of standards to blame

A joint report from consulting, technology and outsourcing services provider Capgemini UK plc (“Capgemini”) and software firm SAP reveals widespread concern about potential misuse of intellectual property by large media firms. The study of UK content providers, including the BBC, EMI and News International, reveals that 87% of media senior executives believe their organisations are at risk of inadvertently misusing content due to poor controls.

The study reveals that technological innovation in the media and entertainment industry has altered the way in which content is consumed and distributed and that media firms are struggling to adapt. Particular concern is attached to user generated content with 73% of senior executives[1] reporting their firms have no rights management system in place for such data.

The transition to a digital marketplace and associated management of intellectual property is posing significant challenges and costs to large content providers. Less than one in ten (7%) of those interviewed believe their current rights management is capable of supporting evolving business needs, and 60% expect substantial investment in such systems this financial year. The report attributes the presence of internal silos of information and lack of data standardisation as dual challenges for media organisations in scaling up their current rights management systems.

Stuart Gordon, Lead Media Consultant, Technology Consulting, Capgemini UK plc, said: “Today’s major content players are the survivors of the relentless introduction of new types of media, new distribution channels and new technologies that have changed the nature of consumer demand. The transition to a fully digital market reaches a watershed this year as revenues from digital content begin to eclipse traditional sources. The management of this transition to a wider range of distribution channels presents the greatest challenge yet to media firms.”

Mark Johnson, Industry Principal, Communications Industries, SAP “Delay in investment in Intellectual Property management solutions risks impeding companies’ ability to compete in new markets. IP management at present is fragmented and manually intensive and legacy system will struggle to scale to the new market opportunities. Failure to exert adequate control over rights management risks companies falling behind more agile competitors.”

A significant failure in current rights management systems is identified by the report as the over-reliance on the least experienced or temporary staff to key in rights data due to the onerous nature of the task. Human error at this stage can result in overpayment of royalties and non-compliance with legal requirements.  Poor royalty management risks companies falling foul of financial reporting requirements such as the US’ Sarbanes Oxley act. Other legal risks include copyright infringement and unexercised options within agreements.

The report concludes that media companies have two options to achieve an effective intellectual property management system; migration of IP data to a new consolidated platform or delivery of a consolidated view across legacy solutions and data sets. Of the media executives consulted for the research 69% report they will be changing the systems they used to handle rights or content and 46% will be changing their processes and structure. A third (31%) intend to outsource or establish relationships with third parties to help manage the transition.

About Capgemini

Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working - the Collaborative Business Experience - and through a global delivery model called Rightshore®, which aims to offer the right resources in the right location at competitive cost. Present in 36 countries, Capgemini reported 2007 global revenues of EUR 8.7 billion and employs over 86,000 people worldwide.

More information is available at www.uk.capgemini.com.

About SAP

SAP is the world’s leading provider of business software*. Today, more than 47,800 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations. Powered by the SAP NetWeaver® technology platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at http://www.sap.com)

(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

Press contacts:

Tom Barton

Capgemini UK plc

Tel.:+44 (0)870 238 2491

Email: tom.barton@capgemini.co.uk

Molly McDonagh

SAP (UK) Limited

Tel.: +44 (0)7966 975287

Email: molly.mcdonagh@sap.com



[1] Interviews with 15 senior executives from nine of the UK’s major media organisations, Spring 2008