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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 (2593)	3/16/1999 11:28:00 AM
From: Burt Roger	Read Replies (1) of 18366

Lucent has licensed Cognicity's system for watermarking. On 3-18-99 the SDMI meets again with the manufacturers of portables. I suspect that within 1-2 weeks thereafter we will hear that one or more of the large well known labels will have committed to Lucent's system with eDig as the portable designer. The lead time for getting a portable that secures the labels offerings is so short (about 6 months) that activity has to start immediately on design and testing. The Madison Project (IBM) in San Diego is proving the security issues for the industry and findings there will be used or recommended by the SDMI. Will some of the big labels also commit to A2B? Sure, it's possible, but I believe the music industry will clearly avoid mp3. I also think that DMD, Creative Labs and other manufacturers will also eventually license from eDig and Lucent so that they too can get players to label's sites using Lucent/eDig technology.

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