SunnComm, Inc.
Background: Revised: 10/06/00
SunnComm, Inc. (SUNX), formerly Desert Winds Entertainment Corp., is the owner of proprietary, patent-pending encryption and copy-protection technology designed to enhance and copy-protect digital music and other intellectual properties as they are transmitted over the Internet or purchased on compact disc. Once in the entertainment business itself, the Arizona-based firm has divested itself of all assets and liabilities related to the production and marketing of TV and feature-length films and live casino and theatre shows.
SUNX intends to develop, test and distribute software that inhibits illegal duplication of licensed digital music recordings through encryption and copy protection. The growth of Internet-transmitted digital music, the company observes, has raised enormous concern from record companies, artists and producers over the unauthorized distribution and resulting lost revenues from this distribution of prerecorded digital product. SUNX intends to eliminate the copy-capability of such digitally recorded music and programming. The company's encryption process will also allow record companies to copy-protect their manufactured CDs and DVDs, thus ensuring that music offered through these media will be not be pirated.
SUNX has acquired proprietary, patent-applied-for encryption and copy-protection technology to be marketed as SUN-X Sentinel. According to the company, the Sentinel's encryption features are not resolvable using any single solution, greatly reducing the probability of loss to illegal decryption agents. SUNX will charge a royalty to recording companies to use the software.
Presently, the Sentinel will protect compact discs from unauthorized duplication. SUNX is seeking to develop software applications for digital video (DVD). Finally, the last stage of development will protect digital data (software programs that come on compact discs). Later, the company intends to modify the technology to protect data as it is transmitted on the Internet. The company's contractor has completed development of the encryption technology and primary programming is in place. The first stage prototype is complete.
SUNX believes the SUN-X Sentinel provides security that is qualitatively different than the security provided by other technologies. A shrink-wrapped CD purchased off-the-shelf that was manufactured embedding the company's technology cannot be digitally copied more often than the original license specifies. Using the Sentinel involves no degradation in quality, the company says, and the technology is not format-specific.
INCORPORATED in Nevada Nov. 12, 1998, as Desert Winds Entertainment Corp.; and on Dec. 10, 1998, merged Ti-Mail, Inc. (Ore.). In the merger, 48,879,023 shares of Ti-Mail were exchanged for 977,580 shares of the company. Ti-Mail was organized in Oregon Aug. 9, 1993, as Compliance Signage, Inc., and changed its name to Ti-Mail, Inc. on Apr. 4, 1996. December 31, 1998, the company merged The Whitney Corp., a Nevada corporation. The company issued 6,500,000 Common shares in the merger. The company's present title was adopted July 6, 2000.
Copyright © 2000, Standard & Poor's
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