Bob, just listen to the section of the conference call that I mentioned.
Aug 10, 2000 (Tech Web - CMP via COMTEX) -- Intel Corp. and Matsushita Electric Industrial have co-developed software that allows the secure distribution of music over the Internet, joining a spate of companies competing in a growing market.
The software manages online music distribution from a PC and allows the transfer of music to systems with a Secure Digital memory card, a flash-memory storage device developed by Matsushita (stock: MC), SanDisk Corp. (stock: SNDK), and Toshiba for use in consumer electronics.
The software enables secure CD burning and the secure import of legacy content, activities that are growing in popularity as more people access music online, according to Intel (stock: INTC) and Matsushita.
The companies will license the software to consumer electronics OEMs and to providers of digital music distribution systems that seek an off-the-shelf security solution.
Intel, Santa Clara, Calif., and Matsushita, Osaka, Japan, said their co-developed software exceeds the requirements of the SDMI, a multi-industry group creating specifications for secure online distribution of music.
The software is based on the Content Protection for Recordable Media (CPRM) standard of the 4Cs, a group comprised of Intel, Matsushita, Toshiba, and IBM (stock: IBM).
It also supports the SDMI Phase I watermark, which supports the detection of new or legacy content. The software also features Intel's patented tamper-resistant technology, which hides critical keys and codes from observation and detects any tampering with security mechanisms.
The software has three components, which may be licensed separately: secure music management software; a secure music transfer agent; and a software-integration tool kit.
Companies that license the pieces of software can match them with the Intel Software Integrity System (Isis), content protection software introduced last fall, or with another music management system.
The management software for the PC can be integrated into software jukeboxes to support secure playing, content protection and music check-in/check-out.
The secure music transfer agent software is expected to be licensed by consumer electronics companies building systems with Secure Digital memory cards or CPRM-enabled systems. It supports secure CD-ripping and the secure import of legacy content, the companies said.
The integration tool kit is for digital music distribution providers, and allows them to transfer content from their systems to the secure music transfer agent.
Matsushita has already built the secure music software into two audio players sold in Japan featuring Secure Digital cards, and plans to use it in other kinds of music playback devices, such as mini digital video camcorders with Secure Digital card slots.
With the software, Intel and Matsushita join a number of companies vying for a piece of the market for online music, which is projected to reach $5.4 billion by 2005, according to research firm Jupiter Communications Inc., New York.
IBM, InterTrust Technologies Corp. (stock: ITRU), Microsoft Corp. (stock: MSFT), and Liquid Audio Inc. (stock: LQID) are a few of the companies providing content-protection and management solutions for the secure distribution of music online.
No clear winner has yet emerged among the various technologies. To cover their bets, record labels, music distribution sites, and device manufacturers plan to support several security technologies for online music sites.
The Intel-Matsushita software is a "robust technology" with features unavailable in other solutions, according to a spokesman for Matsushita.
"I don't know of any other company offering secure CD-ripping and import of legacy content today," the spokesman said.
Dan Palka, product manager of Internet security services in Intel's New Business Group, said Intel's interest in secure music software is "part of the company's charter to provide building-block software and services for the Internet."
The company's Isis content-protection technology, introduced in November 1999, is now part of the digital commerce infrastructure solution from Preview Systems Inc. (stock: PRVW).
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