Wednesday, November 25, 2020

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Denuvo's Anti-Piracy Protection Probably Makes Sense For Big-Selling AAA Titles
Andy Maxwell, 25 Nov 09:56 PM

DenuvoMid-October, news began to surface that the systems of gaming giants Ubisoft and Crytek had fallen victim to a hacker attack.

Samples of the companies' data first appeared on the dark web portal of ransomware group Egregor along with threats that the team could leak more confidential data in the days to come. Indeed, at the start of November, the source code for Watch Dogs: Legion reportedly hit the web.

Supposed Denuvo Contact Leaked

This week a new leak, apparently from the same haul, made an appearance online. Posted to various platforms including Twitter, the documents appear to reveal the financial costs of implementing Denuvo's anti-tamper technology into Crysis Remastered.

The costs and effectiveness of Denuvo are hotly debated topics so this document, which appears to be authentic, casts an interesting light on the decisions faced by companies looking to protect their titles from piracy – if only for a while.

Crysis Remastered – The Costs of Denuvo

The 'statement of work' document begins by listing the headline price of Denuvo's anti-tamper technology. There are two components – 60,000 euros for the first 12 months of anti-tamper plus another 80,000 euros if the company required 'unique encryption'. This headline 140,000 figure could receive a discount in the event that the game was released before the end of March 2021, specifically on the Epic platform.

In the event, Crysis Remastered was released on September 18, 2020, meaning that the first year of protection from Denuvo was reduced to 126,000 euros. After the 12-month 'protection' period, the licensee will be given the opportunity to extend the contract, with each additional month costing an extra 2,000 euros.

In the meantime, however, additional costs can be incurred if Crysis Remastered turns out to be a particularly successful venture. In the event that the game receives 500,000 "cumulative first time activations" at any time during the licensing period, an additional one-off fee of 60,000 euros is payable to Denuvo.

Crysis Remastered Was Cracked a Month After Release

Just over a month following its release, Crysis Remastered was cracked by the group CPY, albeit after a couple of attempts to get things working as intended. So, considering that the title only enjoyed just over 30 days' worth of protection, does that mean that Denuvo was a failure and therefore poor value for money?

That's a big question but given that Denuvo's current position is that it aims to protect games in the first days and weeks following release, claiming that Denuvo failed seems to be off the table. Whether it still represents good value for money also requires some guesswork, accurate figures for which are largely unavailable.

Waste of Time or Value For Money?

Nevertheless, since we know that Crysis Remastered was released in the Denuvo-discounted period before March 31, 2021, and we optimistically include the 500,000 copies sold clause relating to the first year, in this Denuvo protection will cost around 186,000 euros.

Reductions aside (some outlets are currently discounting the game), 500,000 copies sold at roughly $30.00 sounds a bit like $15m in revenue so, with the protection costing around 1.2% of gross, that doesn't sound too bad. Indeed, at those prices, if the game enjoyed around 6,200 more sales during the first month from people who would've pirated had Denuvo not stopped them, the financial gamble seems pretty balanced, at least as far as this game is concerned.

Also, it's worth pointing out that just because a game's protection fails after a while, it doesn't necessarily mean it won't go on to commercial success. For reference, the first Crysis was pirated at least 940,000 times in the year following its release (2007/2008) but remained profitable and went on to sell at least three million copies. Times have changed along with the entire market since then, but it's worth a mention.

Denuvo Provides Additional Services in the Package

As part of the deal, Denuvo reportedly sends its engineers to the developer during the initial integration and then provides remote troubleshooting support, right up until the launch of the title.

The company also carries out manual testing of the protected title and then scans for early piracy leaks post-launch alongside manual piracy monitoring with regular emailed updates.

Denuvo is Probably Here to Stay

While the leaked documents only relate to Crysis Remastered, it is by no means the only game with Denuvo protection. Of all games released since September, just four have been cracked, all of them taking roughly a month to hit pirate sites. To date, titles including FIFA 21, Watch Dogs: Legion have all 'survived' their first four weeks, with others such as Dirt 5 and Need For Speed Hot Pursuit Remastered creeping close to that target.

Whether those titles and the ones released more recently (Yakuza: Like a Dragon, Assassin's Creed: Valhalla, and Football Manager 2021) will make it too remains to be seen but overall it seems that developers still have confidence in Denuvo and the insurance-type policy it provides.

Finally, it's worth pointing out that Cyberpunk 2077, the most anticipated title of 2020, will release December 12 without any DRM whatsoever. It's not clear what kind of deal Denuvo would've offered its developer but it is expected to become a smash-hit nonetheless.

The question of whether it could enjoy even more success with Denuvo may never be answered.

From: TF, for the latest news on copyright battles, piracy and more.

EU Study: More People Consume Legally But Stubborn Pirates Remain
Ernesto Van der Sar, 25 Nov 12:01 PM

EU CopyrightThe European Union Intellectual Property Office (EUIPO) regularly conducts studies to see how piracy develops over time.

When compared to earlier years, the findings help to signal trends which can be useful as input for future policy.

This week, EUIPO released a new study on the perceptions and behavior of Europeans regarding intellectual property. The report covers both counterfeit goods and online piracy but our focus is on the latter.

The research is a follow-up to similar studies in 2013 and 2017. It is based on more than 25,000 interviews that were conducted across 27 European countries this summer and touches on a variety of copyright-related aspects.

Pirates Are a Rare Breed

One of the key findings is that online piracy is a relative fringe activity. Of all respondents, only 8% said they downloaded or streamed content from illegal online sources intentionally over the past year. That's down two percentage points compared to earlier years.

How common pirates are differs greatly from country to country. In Greece, Poland and Italy the proportion is relatively low at 4% but in Luxembourg and Slovenia, it's much higher with 18% and 17% respectively, which are significant increases compared to 2017.

Pirates More Likely to Use Legal Services

While pirates are often portrayed as freeloaders, that image requires some nuance. In fact, EUIPO's study shows that people who consume content illegally are also more likely to access legal services.

"Interestingly, those who intentionally accessed online content from illegal sources, are relatively likely to have also purchased online content from legal sources," the EUIPO study concludes.

In this study, 59% of the self-proclaimed pirates used legal services, compared to 42% for the European average. This means that legal and illegal consumption are complementary and that pirates are paying customers too.

Piracy is OK Without Alternatives

Another intriguing finding is that many people, who don't download or stream anything from illegal platforms themselves, still think that piracy can be acceptable under certain circumstances.

More than a quarter of the European population believes that it is acceptable to pirate when there are no legal alternatives (28%), or if it's only for personal use (27%).

piracy perception

It appears, however, that these piracy approval ratings are dropping as both percentages were significantly higher three years ago. According to EUIPO, accessing pirated content "is less and less acceptable".

Here we can find substantial differences throughout Europe as well. For example, in Bulgaria, 50% of the people believe piracy is acceptable without legal alternatives, while only 20% of the Finnish respondents agree with this statement.

What Makes Pirates Stop?

The study also zooms in on what's needed to make pirates stop. Of all the people who admitted to downloading or streaming content from illegal sources, more than half (58%) said they would stop when there are affordable legal options.

The second most likely reason to stop was the risk of punishment, followed by a better understanding of the harm piracy does to creators.

stop

Interestingly, the number of people who cite good legal alternatives as a reason to stop has dropped significantly compared to three years ago. Perhaps because many of the people who chose that reason in the past, have indeed switched over.

Usage of Legal Services Grows

More and more Europeans use legal services to download or stream online media. 42% of all respondents say they pay to access legal services. This is up from 27% three years ago.

People's attitudes toward these services have changed as well. Compared to earlier years, more people now believe that the diversity and quality offered by legal services are better than the pirated alternatives.

In addition, a massive 89% of all Europeans prefer a legal service over pirate platforms. And to make sure that they do the right thing, people check more often whether a site or service is legal or not.

quality services

Based on the latest findings, EUIPO concludes that there is a gradual but encouraging change in people's understanding of and attitudes towards copyright.

These changes are in part the result of education but the availability of affordable legal services played a key role as well.

"People are now more willing to pay for legal content particularly if it is made available at a reasonable price. Part of this change may be linked to the increase in availability of legal sources. People are paying more for legal content as the quality and diversity improves."

The full EUIPO report titled: Citizens and Intellectual Property: Perception, Awareness and Behaviour 2020, is available here

From: TF, for the latest news on copyright battles, piracy and more.

 
 
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