Digital Rights Management Strategies for Regulatory Compliance
The digitization of personally identifiable and protected health information (PII/PHI) and Intellectual Property (IP) have had a dramatic effect in businesses’ operational efficiency and productivity.
Unfortunately, these digital records, whether they’re shared, transferred, or stored, are sitting ducks for cybercriminals looking to steal it and sell it, ransom it, or commit fraud with it. Digital rights management (DRM) has emerged as a viable solution for safeguarding these valuable assets, particularly as they’re shared externally with trusted third parties, such as vendors and suppliers, consulting physicians, and professional services providers like lawyers, engineers, and accountants.
DRM also plays a pivotal role in ensuring businesses adhere to stringent data privacy regulations and standards like GDPR, HIPAA, and ISO 27001. Adherence to these and other regulations enable businesses to mitigate the risk of non–compliance and avoid costly fines and penalties. They also provide businesses with peace of mind, a competitive advantage, and enhanced customer trust.
In this blog post, we’ll take a look at the significance of DRM in maintaining regulatory standards and examine the best practices for implementing robust DRM strategies to protect sensitive information effectively in compliance with rigorous data privacy regulations.
Wondering if digital rights management can protect your priceless intellectual property? The simple answer is yes but you’ll want to be sure to avoid these four DRM stumbling blocks.
DRM Compliance Overview
At its core, digital rights management technology consists of a set of access control capabilities that restrict the use of proprietary content like copyrighted material and other sensitive information like contracts, product specifications, blueprints, x–rays, and more.
With respect to compliance, DRM provides businesses a critical tool for enforcing security and governance policies and in alignment with industry, regional, national, and state data privacy regulations as well as internationally recognized best practice standards. As governments and international regulatory organizations impose stricter data protection laws, businesses around the world must implement robust DRM strategies to safeguard their digital assets, mitigate legal risks stemming from non–compliance, and maintain a strong reputation for data privacy in the marketplace.
Leveraging DRM for compliance involves understanding the legal frameworks that apply to digital content and utilizing DRM solutions that align with these requirements. This process ensures that digital content is accessed, shared, and used in a manner that ensures data privacy and protection. Businesses therefore must learn and understand the compliance landscape, identifying the applicable regulations, and selecting DRM solutions that enable compliance.
Why DRM is Essential for Regulatory Compliance
The internet, cloud computing, and the emergence of artificial intelligence and large language models have created an environment in which businesses can create, process, send, share, and receive digital content faster and more efficiently than ever before. Much of this content is considered sensitive: customer records, financial account statements, design plans, contracts, patient records, and much more. As a result, this content must be protected from unauthorized access, whether stolen by cybercriminals, shared accidentally by employees, or forwarded by trusted third parties. Because this information is so easily replicated and distributed, DRM provides a critical barrier against unauthorized use.
By restricting access to sensitive content, DRM helps organizations control how their digital assets are utilized, which is a critical component of most industry and governmental data privacy regulations. DRM technology also helps organizations demonstrate regulatory compliance by maintaining the integrity and authenticity of digital content. This is especially significant in industries where altering content can have severe consequences, such as in education or scientific research.
Finally, DRM provides businesses with audit logs, enabling organizations to show and prove only authorized personnel have access to sensitive content. Audit logs are also invaluable in cyber forensics after a data breach as they provide a detailed, chronological account of all system activities.
Key Regulations Influencing DRM Strategies
As data breaches become more frequent and the regulatory environment more complex and onerous, it’s important for businesses considering making a DRM investment to understand the key regulations influencing their DRM strategy. A fundamental tenet of any business’ DRM strategy is to protect consumer information, intellectual property, and customer p or patient privacy.
General Data Protection Regulation (GDPR)
This comprehensive regulation impacts any business that manages or processes PII belonging to EU citizens and residents. For companies utilizing a DRM solution, adhering to GDPR entails a thorough examination and adjustment of their practices. Specifically, it demands that any digital content which includes personal information must be managed in a way that is fully compliant with GDPR’s stringent data protection criteria. This includes ensuring that access to, and sharing of, such content is conducted in a secure manner, with adequate controls to prevent unauthorized data breaches and misuse.
Health Insurance Portability and Accountability Act (HIPAA)
In the United States, HIPAA provides healthcare providers and their partners a critical framework for protecting patients’ personally identifiable and protected health information (PII/PHI). DRM solutions therefore are essential for securing electronic medical records (EMRs), ensuring that sensitive patient records are safeguarded against snooping, misdelivery, theft, or other form of unauthorized access. DRM solutions play a significant role in managing and controlling who has access rights to view, edit, or share this highly confidential information, i.e., only nurses, doctors and consulting physicians providing care for a specific patient.
Federal Information Security Management Act (FISMA)
FISMA mandates that federal agencies put in place a comprehensive information security program to ensure the proper safeguarding of digital assets like controlled unclassified information (CUI) and federal contract information (FCI). As part of this requirement, agencies are tasked with developing, documenting, and implementing a well–structured and comprehensive data protection plan that includes digital rights management. DRM efforts are particularly focused on preventing unauthorized access to sensitive information. Agencies set strict protocols on who can view, share, or modify their digital content, thereby ensuring that the information is accessible only to those who possess the necessary permissions.
Digital Millennium Copyright Act (DMCA)
For businesses engaged in the distribution of digital content like music, videos, books, or software, DMCA all but requires sophisticated DRM technologies. DRM solutions are vital for preventing unauthorized replication, dissemination, and infringement of copyright laws. Businesses that comply with DMCA protect their intellectual property and ensure content is shared and used legally. In addition, compliance fosters a secure environment for creators and distributors to innovate without concern of IP theft.
Data Protection Act 2018 (DPA 2018)
DPA 2018 updates previous data protection laws while also aligning the UK’s data protection framework with the EU’s General Data Protection Regulation. Like GDPR, DPA 2018 requires businesses to ensure that PII is processed lawfully, transparently, and for a specific purpose. DPA 2018 also mandates the implementation of appropriate technical and organizational measures to protect personal data from unauthorized or unlawful processing, accidental loss, destruction, or damage. In this context, DRM provides robust protections for digital content with access, use, and distribution controls. DRM tools can further support DPA 2018 compliance by providing audit trails and usage reports, making it easier for organizations to demonstrate their adherence to the law’s requirements regarding data protection.
Personal Information Protection and Electronic Documents Act (PIPEDA)
Canada’s PIPEDA requires businesses to obtain consent for the collection, use, or disclosure of personal information, ensure its accuracy, provide access to individuals to their personal information, and protect it through appropriate security measures. DRM facilitates the protection of sensitive information by controlling and monitoring its access, use, and distribution. They also enable businesses to enforce permissions that restrict who can view, edit, or share personal information, thus maintaining its confidentiality. By embedding persistent protection directly into the data, DRM ensures that the information remains secure throughout its lifecycle, regardless of where it is stored or who attempts to access it.
Best DRM Strategies for Compliance
Creating a rock–solid DRM strategy for compliance involves a thorough evaluation of the business’ specific needs, the nature of the digital content to be protected, and the relevant regulatory requirements.
A robust DRM strategy, naturally, includes a DRM solution. While there are many to choose from, key criteria include the flexibility to adapt to different regulatory requirements, scalability to accommodate growing volumes of digital content, and interoperability to work seamlessly across platforms and devices. It should also provide rigorous access control mechanisms, encryption standards, and audit trails.
Shopping for a DRM solution? Learn the top 5 requirements for an effective DRM solution.
Businesses can’t however rely exclusively on DRM technology to enable regulatory compliance. These organizations must stay abreast of the latest regulatory developments and continuously assess and update their DRM solutions accordingly.
Choosing the Best DRM Solution
Choosing the best DRM solution for compliance involves a thorough evaluation of the business’ specific needs, the nature of the digital content, and the relevant regulatory requirements; a one–size–fits–all approach will not suffice. Instead, tailoring DRM solutions to fit the unique challenges and objectives of each business is essential.
Among the wide array of DRM solutions available, those offering customization, scalability, and robust security features are often considered the best for compliance purposes.
For instance, businesses dealing with highly sensitive content might prioritize DRM solutions offering encryption, digital watermarks, and dynamic access controls. Meanwhile, businesses that operate in industries subject to frequent regulatory changes may benefit from DRM solutions that allow for easy updates to compliance policies.
User experience is another critical consideration in choosing a DRM solution, even if it’s for compliance. An overly restrictive DRM solution can hinder legitimate access to digital content and encourage employees to find and use less secure alternatives. Balancing security with usability therefore is crucial.
Tech Innovations Enhancing DRM Compliance
Blockchain, artificial intelligence (AI), and machine learning are revolutionizing how businesses utilize DRM to achieve compliance. These cutting–edge technologies offer unprecedented levels of security, transparency, and efficiency, making it easier for businesses to protect their digital content while adhering to stringent regulations.
Blockchain for DRM Compliance
By creating an immutable ledger of digital transactions, blockchain can provide a transparent and secure method for managing and tracking digital rights. This can significantly reduce the risks of unauthorized distribution and use of digital assets, as each transaction is recorded in a way that is verifiable and unchangeable. Blockchain can also automate the enforcement of digital rights through smart contracts, streamlining processes and reducing the potential for human error.
AI and Machine Learning for DRM Efficiency
Artificial Intelligence (AI) and machine learning are transforming DRM strategies by enabling more sophisticated content protection measures. Modern DRM technology can analyze patterns of content usage and identify potential infringements more efficiently than manual monitoring systems. AI can also help in personalizing access to digital content, providing users with a more tailored experience while ensuring compliance with digital rights policies.
Future Trends in DRM Technology
Innovations in encryption technology, enhanced digital watermarking, and the integration of AI for predictive compliance monitoring are just a few of the trends that may define the next generation of DRM solutions. In addition, the wider adoption of blockchain for DRM suggests a move towards more decentralized and transparent methods of content protection. These trends promise enhanced capabilities to protect digital assets in highly regulated industries.
Ensuring Ongoing DRM Compliance
Achieving compliance with DRM or any other technology is one challenge. Maintaining compliance is an entirely separate matter. A robust DRM compliance strategy encompasses diligent monitoring and reporting mechanisms, comprehensive training and awareness programs, and regular reviews and audits. By prioritizing these strategic DRM components, organizations can significantly increase their chances of maintaining regulatory compliance with myriad data privacy regulations and standards.
Monitoring and Reporting for Compliance
Businesses should implement systems that automatically log access and usage of digital content, providing an audit trail that can be reviewed for compliance with digital rights policies. Regular reporting can help identify potential issues early, allowing for corrective action before significant problems arise. This proactive approach ensures organizations can respond swiftly to changes in regulatory requirements and digital content usage patterns.
Training and Awareness for DRM Compliance
Creating a culture of compliance within an organization is vital for a company’s success, particularly in this compliance era. Regular training for staff on the importance of digital rights management and how it enables compliance encourages widespread adoption. Awareness campaigns can also help reinforce the significance of DRM in protecting intellectual property and sensitive data.
Review and Audit Processes for DRM Systems
Regular reviews and audits of DRM solutions should include assessing the effectiveness of, not just a DRM solution, but more broadly a business’ DRM strategy, reviewing access controls, and ensuring that digital rights policies remain aligned with current regulation and business objectives. Audits can be conducted internally or by external parties to provide an unbiased assessment of DRM practices. These processes enable organizations to identify areas for improvement and ensure that their DRM strategies remain robust and effective.
Kiteworks Helps Organizations Demonstrate Regulatory Compliance With Next–generation Digital Rights Management
As digital content continues to power the global economy, digital rights management tools play a crucial role in protecting sensitive content and ensuring regulatory compliance. By recognizing the importance of DRM for compliance, and implementing the best DRM solutions tailored to the business’ needs, organizations can safeguard their assets, reputation, and ultimately, their success.
The Kiteworks Private Content Network, a FIPS 140-2 Level validated secure file sharing and file transfer platform, consolidates email, file sharing, web forms, SFTP and managed file transfer, so organizations control, protect, and track every file as it enters and exits the organization.
Kiteworks SafeEDIT is a next-generation digital rights management solution that empowers organizations to collaborate with trusted partners on confidential files without relinquishing source control.
Rather than transferring a document, Kiteworks SafeEDIT streams an editable file rendition, enabling remote co–authoring, co–editing, and seamless remote workflows. These streamed files function just like traditional documents, providing a native application experience for reading and writing files that makes collaboration easy, while the original file remains on the Kiteworks platform, behind the content owner’s firewall.
As with every other file that enters or leaves the organization through the Kiteworks Private Content Network, these file renditions are centrally controlled, secured, and tracked to protect sensitive content and demonstrate regulatory compliance with data privacy regulations and standards.
To learn more about the Kiteworks Private Content Network and how you can utilize SafeEDIT to balance the need for rigorous security and modern workflows, schedule a custom demo today.
Additional Resources
- Video Kiteworks SafeEDIT: Next-generation Digital Rights Management (DRM)
- Blog Post Top 5 Requirements for an Effective DRM Solution
- Brief SafeEDIT Next-gen DRM Maximizes Productivity and Security
- Blog Post 4 Biggest Digital Rights Management Stumbling Blocks
- Blog Post The Promise of DRM and Why It Typically Falls Short