Scanning license for education – the Kopiosto approach

1. Scanning license for education – the Kopiosto approach IFRRO Senior Managers’ Forum 10.2.2010 Amsterdam Katri Soramäki Jukka-Pekka Timonen

2. Case scanning license

3. Pricing – but in which order? • Pricing the use without surveys • Individual pricing by title and use • Pure lump sum • License it and then survey - DK, NO • Survey first and then license - FI

4. Survey first – why? Rights holders unwilling to give the rights … Customers unwilling to buy and pay … before they have an idea about the scale and nature of the phenomenon= political and market necessity

5. How deep to go? • Connection between the price for scanning and different uses of scanned works? • Price differentation of uses • Estimated market effect – relation to publishers’ digital products • Digital is more expensive than analogue • Digital delivery is more expensive than printing • Multiple use of same digitized material must be taken into account

6. Benefits? • Price differentationof uses may make selling easier • If the cheaper forms of uses are favored, the total price will be lower • E.g. strong demand for printing which is priced lower -> modest price • Digital delivery will increase by time • Starting price to customers lower • Easier to getrights from rights holders • If rights holders hesitate to give rights for digital delivery, how about starting licensing with e.g. the use of smartboards in schools? • “If the jacket doesn´t fit, how about a vest?”

7. Kopiosto’s solution to digital licensing

8. Survey first • Like in all other licensing areas Kopiosto has started the development of digital licensing with surveys Easier to argue the product and price to customers when your arguments are based on surveys findings Surveying unlicensed use will underestimate the use you should bill for

9. Survey findings • How many pages of protected material is scanned a year • To how many students on average it is distributed • How the scanned pages are distributed • displayed in class, • printed out to students and/or • delivered via intranet/learning environment etc. to students • How many times a year on average the same scanned material is used

10. Pricing elements • Analog or digital use • If digital the price is higher • Better quality of copy • Same copy can be used over and over again without loosing quality • Easier to store and organize copies in digital form • Easier to compile teaching material • Possibility to attach copies to powerpoint presentations • Possibility to print on paper or deliver via intranet • All of the factors above are given a numeric value

11. Survey & price setting combined • All of the scanned pages are not used the same way • All of the factors that cause higher price do not exist for all of the pages • We need to lower the price proportionally Final price is a combination of survey data (how scanned pages are used) and pricing principles (how much each type of use is worth).

12. Example:Vocational institutes and polytechnics survey Pricing

13. Designing product alternatives • Follows same principles as photocopying license • Cheaper to purchase a license • Based on survey • For the whole school • For the whole academic year • More expensive to buy prepaid pages based on own estimate • Discounts as in photocopying, cheaper to buy in large quantities

14. Product alternatives available to schools Traditional license • Scanning volume based on survey • Price per student • License is for the whole school • Polytechnics: possible to buy the license for separate units • Orders by mail or via web store • All scanned pages need to be stamped in web store before use PrePaid–licens • No survey • Price per page • School buys sufficient number of pages • Resembles machine license for photocopying • Orders by mail or via web store • Bookkeeping of paid and used pages in web store • All scanned pages need to be stamped in web store before use

15. Thank you! jukka-pekka.timonen@kopiosto.fi katri.soramaki@kopiosto.fi