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2.4. Evaluating benefits, trade-offs and scholarly debates
Applying the above framework reveals that the integration of DRM within walled
gardens produces both economic benefits and systemic trade-offs. First, DRM contributes
to safeguarding the revenues of creative industries by limiting unauthorized copying,
thereby encouraging investment in high-quality content production (Hazlett, T.W.,
Weisman, D.L, 2011). Second, tightly controlled ecosystem models enable firms to
maintain consistent technical standards, enhancing the security, safety, and stability of
digital services. Third, the integration of hardware, software, and content within a unified
ecosystem helps optimize user experience, reduce search costs, and increase convenience
in digital consumption. Nevertheless, this model has also sparked substantial academic
debate. Some scholars argue that the use of DRM to restrict interoperability among
systems may weaken competition and hinder innovation (Lessig, 2006). Furthermore,
when firms control the entire digital value chain, concerns arise regarding the balance
between protecting intellectual property rights and safeguarding consumer interests.
2.5. Research methods: Implications for analyzing Apple Inc. and the Vietnamese
context
The proposed framework serves as a comparative analytical tool for examining both
global and local cases.
In the case of large technology firms, such as Apple, the framework enables a
systematic analysis of how DRM is embedded within ecosystem strategies to create lock-
in and market power.
For developing economies, this approach is particularly important. While DRM and
controlled ecosystems can support the growth of digital content industries and attract
investment, insufficient regulatory balance may lead to technological dependence or limit
the development of domestic platforms. In the Vietnamese context, the framework
allows for the evaluation of emerging digital ecosystems, focusing on their level of
technological integration, governance mechanisms, and competitive implications.
Accordingly, this framework provides the foundation for assessing how DRM and walled
garden strategies can be adapted to ensure a balance between intellectual property
protection, innovation, and fair competition in the digital economy.
3. The implementation of the “Walled Garden” model and DRM: The case of Apple
Inc.
3.1. Strategy for building a closed digital ecosystem
In the evolution of platform-based economic development, Apple Inc. is widely
regarded as one of the most representative firms in implementing a “walled garden”
model in conjunction with DRM technologies to exert comprehensive control over the
digital value chain. Unlike open-platform approaches that emphasize broad
interoperability, Apple Inc. has consistently pursued a vertically integrated strategy,
encompassing the design of hardware, operating systems, content distribution software,
and access-rights management infrastructures.
This approach enables the firm to construct a highly synchronized technological
ecosystem, in which each component is optimized to function within a proprietary
environment. Such integration not only enhances user experience but also allows the firm
to standardize technical protocols, regulate content distribution, and revenue models
across the entire platform (Hazlett, T.W., Weisman, D.L, 2011).
From the perspective of platform economics, this vertically integrated model shifts
competition from individual products to ecosystem-level competition. As users adopt
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