Content Business vs Software Business
When I started Proactive International, we exclusively focussed on creating and expanding international distribution channels. We took on e-on software as a client while Vue 2 was still around and Vue 3 was in preparation. This introduced me to the business of licensing 3D content into the prosumer market. This resulted in the creation of our Meshbox Design division .
Although software consumes content, the businesses are fundamentally different. Software is all about highly productive process - and content is the fruit of that process. The intellectual property issues are entirely different and at times, conflicting- the hottest point of conflict: digital rights management and the motion picture industry. Software enables you to display, modify and expand your enjoyment of the content offered by the motion picture industry.
At the same time, as IP holders, the motion picture industry wants to maximize every opportunity to get more money for more uses of the same IP with as little additional work as possible and they are getting more and more clever about it. Look at the endless re-releases of movies - plain initial releases, director’s release, extended release, ultimate release. In each case, a little more content is added to the bill of materials (aka “BOMs”) of the new release, and under new skus. In other words, they want to repurpose the content yet again to create new products that by being unique, you could not possibly get the idea that you already licensed them.
The moral of this story is that, if you are a software vendor and want to license a popular culture character or clever preexisting piece of music, the IP owner will likely present you with a detailed license agreement that puts limits on your use of the character or music you are not accustomed to in the software business. This isn’t insanity - its to be expected.
