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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology

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Mar 20 5:00 PM EST

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To: Walter Morton who wrote (1882)	1/25/1999 6:33:00 PM
From: Kerry Sakolsky	Read Replies (1) of 18366

Walter, You are absolutely right. Watermark is only a means of tracing origin, however Lucent has combined its Watermark with an encryption that prevents copying. It doesn't make sense for Lucent to buy into Genuine when they already their own patented copy protection. Companies who develop MP3 players are getting a lot of attention over issues of piracy. They are rushing to meet the concerns of the music industry. I'm sure there will be plenty of competition. EDIG is working on a recorder and a computer interface for Lucent. Lucent has to decide if they are going to develop products for their clients using PAC or simply license PAC. So far they have decided to develop products, but I'm sure they are keeping their options open. I guess we will have to see how the market receives this prototype. One thing we know for sure is that copy protection is important.

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