December 11, 2002 09:45
Immediatek and LCD Interactive Form Exclusive Partnership on Breakthrough Technology to Enable Music Downloads While Protecting Copyrights
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RICHARDSON, Texas--(BUSINESS WIRE)--Dec. 11, 2002--Immediatek, Inc. (OTCBB:MODG) today announced that it has formed a strategic alliance with LCD Interactive, Inc., a privately held company that has developed breakthrough technology enabling Internet music fans to download standard MP3 files directly to their CD burners, while protecting the artists' copyrights.
Immediatek says the alliance with LCD, headquartered in Frisco, Texas, provides the company with an exclusive agreement to further develop and co-market the technology. Immediatek's CEO Zach Bair comments that the technology could provide a standards-based solution for the music industry's burgeoning problems with downloadable music. Immediatek has also entered early discussions concerning the possible acquisition of LCD Interactive.
According to Bair and Paul Marin, CEO of LCD, the technology is in use on LCD's Web site TwoBigToes.com, which has a library of more than 30,000 MP3 files from independent artists and even some well-known artists such as multi-platinum artist Shania Twain. Users are able to download and burn MP3 music files directly to a CD-R, completely bypassing the user's hard disk, thereby offering a secure way of legally delivering music to fans onto CD-Rs.
Artist's royalties are guaranteed and are tracked and paid through TwoBigToes' unique "STAMPS" program, which stands for "Sales Trends And Music Payment Status."
"The problem with software such as Napster and Gnutella is that files are freely traded among users," says Bair. "With this technology, artists, labels, and music distributors have a method to control copyrights utilizing standard MP3 files. No additional encryption is necessary."
Marin adds the technology is transportable and is being readied for other formats such as DVD.
Immediatek expects to start discussions with major labels, artists and distributors almost immediately, and two pending music-related agreements are expected to be announced in the next several days.
ABOUT IMMEDIATEK:
Immediatek, Inc. (www.immediatek.com) (OTCBB:MODG) is an Efficient Solutions Provider (ESP) specializing in Fortune 500-quality computing and infrastructure support and software solutions, utilizing innovative methods and processes coupled with outstanding customer service to effectively reinvent and change the way people think about information technology. In addition to it's innovative TekNet OnCall(TM) support product line, Immediatek also offers such professional solutions as business process re-engineering through the use of technology, as well as a wide array of web and internet services. The company is based in Richardson, Texas, and was founded in 2001 by Zach Bair, who is also the founder of venture-backed PowerUp Networks. PowerUp has so far received over $29 million in funding based on automation software of Bair's design that was initially implemented at Sabre, Inc.
ABOUT LCD INTERACTIVE:
LCD Interactive, Inc. offers a proprietary "one-click" CD burning software that protects copyright owners and musicians. Unlike Roxio, LCD's software allows music to download from the Internet and instantly and automatically burn to a compact disc recordable (CD-R) in "one click". LCD is the only software capable of downloading an entire music CD from the Internet surpassing the computer's hard drive and burning music directly to a compact disc recordable. In addition to the music, LCD's software downloads CD cover art, liner notes and song tracks for printing. LCD's "one-click" burning software is compatible with all CD burners in the marketplace and is the only company to offer digital music that downloads and burns directly from the Internet to a CD-R in one simple click
For more information on Immediatek please contact:
CONTACT: Immediatek, Inc.
Zach Bair, 214/712-7336
or
Michael A. Burns & Assoc, PR
Jennifer Green, 214/521-8596
jgreen@mbapr.com |
