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Technology Stocks : Liquid Audio Inc - (Nasdaq- LQID)
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To: Trade4$ who wrote (290)7/22/1999 1:41:00 PM
From: Prognosticator  Read Replies (2) of 674
 
I think we are overlooking the real purpose of the watermarking technology. I don't think the industry is too concerned about Joe Q Public recording music to have in their cars or give to friends. What the industry wants to prevent is the SELLING of copies.

Thank you for this cogent analysis. So the true value in a watermark is not that it is difficult to remove (it is trivially easy), but that it is difficult to create and add to music not already watermarked.

Suppose a distributor "ABC" releases a watermarked CD, and then a pirate want's to duplicate it en-mass, and sell it as the original material. A straight red-book binary copy (bit by bit) of the CD will preserve the watermark, and so the pirated CD's will appear to be legit. There is no protection against this, since CD red-book bit-by-bit recorders are now commonplace on PC's. Only dumb and incompetent pirates who try to use an SDMI recorder will be thwarted.

So the only thing a watermark really guarantees is that I can't record my own analog music, and then watermark it with "ABC"'s watermark to give it legitimacy, and then sell it to some unsuspecting reseller who will pay me the full price. Doesn't seem that valuable to me.

P.
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