Page 309 - ISC PROCEEDINGS 21.4
P. 309

copyright protection and anti-piracy enforcement. There is still a lack of systematic
                  research that conceptualizes DRM as a mechanism of private governance and market
                  structuring within the platform economy. Moreover, limited attention has been given to
                  how DRM interacts with ecosystem strategies to shape competitive dynamics in digital
                  markets. At the same time, there is a shortage of studies that connect the experiences of
                  global technology firms—particularly in deploying “walled garden” models—with the
                  strategic orientation of Vietnamese enterprises operating in a developing digital economy.
                        Addressing this gap is critical, as international experience suggests that the
                  integration of DRM with ecosystem-based strategies can simultaneously create growth
                  opportunities and regulatory challenges (Evinger, 2024); (Hazlett, T.W., Weisman, D.L,
                  2011).
                        Therefore, examining how leading technology firms implement DRM within “walled
                  garden” structures provides important insights not only for strengthening intellectual
                  property protection but also for guiding the development of sustainable and competitive
                  digital platform strategies in Vietnam. This forms the theoretical and practical basis for a
                  deeper investigation into the relationship between DRM and “walled gardens” in the
                  context of contemporary digital transformation.
                        2. Basic concepts: walled garden” and “digital right management”
                        2.1. The Concept of the “walled garden” model in the digital platform economy
                        In the context of the digital economy, the term “walled garden” refers to highly
                  controlled digital ecosystems in which the platform owner simultaneously governs
                  technological infrastructure, technical standards, distribution channels, and user as well
                  as content-provider access. This model enables firms to establish a closed operational
                  environment where products and services are designed to function primarily—or
                  exclusively—within the ecosystem developed and managed by that same firm (Evinger,
                  2024).
                        From the perspective of information economics, the “walled garden” model
                  represents a competitive strategy grounded in the exploitation of network effects and the
                  increase of user switching costs. Once consumers have invested in devices, content, or
                  services within a particular ecosystem, the cost of moving to an alternative platform
                  becomes substantial, thereby generating a lock-in effect (Carl Shapiro and Hal R. Varian,
                  1999). Consequently, competition shifts from product-level rivalry to ecosystem-level
                  competition, where control over standards and interfaces becomes a key source of
                  market power.
                        2.2. The definition and functions of digital rights management
                        DRM refers to a set of technologies and technical mechanisms designed to control
                  access to, use of, reproduction of, and distribution of digital content through encryption,
                  authentication, and rights-governance protocols. DRM enables rights holders to define
                  specific conditions for content exploitation, such as limiting the number of authorized
                  devices, restricting usage duration, or regulating the ability to share data.
                        In content industries, DRM is regarded as a critical instrument for protecting
                  intellectual property in the digital environment, where unauthorized copying and
                  distribution can occur at large scale and at nearly zero cost (Hazlett, T.W., Weisman, D.L,
                  2011). However, DRM extends beyond copyright protection to function as a mechanism
                  of market regulation, as it enables firms to control how users access and consume
                  content. By embedding rules into digital architecture, DRM enables firms to define how
                  content is accessed, shared, and monetized.


                                                                                                      308
   304   305   306   307   308   309   310   311   312   313   314