So, what he suggests is that everyone has to use filters on their computers to prevent copyrighted material from being listened to and traded. He knows that users would not want that kind of filtering on their computers but he thinks that they would accept it if the benefits would outweigh that disadvantage.

Basically he wants that everyone helps them to filter every user on earth to prevent unauthorized listening and spreading of copyrighted music. Here are some quotes taken directly from the video..

Filters can be put in the applications for example. You know, one could have a filter on the end user’s computer that would actually eliminate any benefit from…encryption because if you want to hear it, you’d have to decrypt it, and at that point the filter could work.

When people start moving to encryption and so on, they know that they are engaging in illegal conduct..

via Public Knowledge