A disappointed GSM Association recently has complained that the MPEG Licensing Agency's revised licensing fee proposal for OMA-developed DRM is "unreasonable and unworkable." MPEG LA represents owners of the essential intellectual property rights to the underlying technology for OMA's DRM.

Many industry observers attending the industry forum, however, see the GSM's Association's public objections as a tactical necessity, aimed at helping mobile network operators drive down the potential cost of IP underlying DRM. DRM is viewed as essential to allow consistent delivery of music and video files across mobile networks.

The GSM Association's ire over licensing fee does not imply a lack of interest in OMA's DRM among operators. To the contrary, "Operators need the alternative to Microsoft Corp.'s DRM," observed Hans Streng, CEO of Philips Software (Eindhoven, Netherlands).

OMA's Buhse said, "DRM is about respecting IP rights." The underlying technologies used in OMA's DRM are "patents crucial to the basic mechanisms to DRM," he stressed. MPEG LA is said to be preparing a response to market feedback.

Camilla Budelli, head of terminal strategy and management at Vodafone Omnitel, said, "We believe in an open standard-based DRM. Our job is to enable our customers."

It remains unclear how Microsoft plans to respond to network operators' demands for cheaper DRM technology. Microsoft, which announced this week its newest version of mobile operating system called Windows Mobile 5.0, has its own Windows Media DRM. While licensing terms have not been disclosed, the Microsoft technology is also believed to use some of the same IP deployed in OMA's DRM.

OMA's Buhse said, "It is not in the interest of anybody to have one single DRM solution dominating PCs, mobile and consumer electronics devices." He added, "Nobody will be happy because such a monopoly could lock up content, drive up the cost of DRM and stifle technology innovation."

Noting that Microsoft is an OMA member, and recently sent three officials to a Paris meeting to discuss OMA's DRM, Buhse said he sees the moves as Microsoft's acknowledgement of OMA's DRM. Microsoft is expected to drive its proprietary DRM in the PC and PDA market, but can't ignore OMA's DRM in the mobile phone market, he explained.

If coexistence is the eventual result, many in the industry wonder how two incompatible DRM technologies can work together. Buhse, who is also director of products and marketing at CoreMedia (Hamburg, Germany), said interim solutions can be provided on a server to bridge the two DRMs. In the long term, the two sides could agree on a DRM technology handshake, he added.

The industry needs to deal with "trust issues" between the two different DRMs, he added.

Without elaborating, Buhse indicated that discussions have already begun on the issue, and that a resolution could come this year.