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Technology Stocks : Hide & Seek - The Copy Protection Solution

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To: cardcounter who wrote (646)4/6/1999 9:38:00 AM
From: cardcounter  Read Replies (1) of 690
 
Piracy methodology and why HST technology (still) won't work.

Those who remember me, know that I've been skeptical of HST on the basis of its technology and on its ability to obtain financing.

more on the technology:

I won't go into the details nor provide you with where I get my information on software/entertainment piracy methodology.. but consider the following point I've made before.

At best, HST's copy protection schemes will prevent direct cd/dvd copies, and will most likely have little impact on the overall piracy of software, movies, music, etc. Here's why:

When software is released (distributed, most this occurs prior to the retail release of the software) by pirates, it is done in 2 formats : warez and ISO format. Both forms of "packaging" are transmitted via the internet and are not reliant on direct cd copying.

The warez version is a ripped version of the software. Initially, software is supplied to top warez groups (very often suppliers are from the company that makes the program.. example, the QA -quality assurance- department is a common supply pool).

Top crackers (competent individuals who can unencrypt/unlock anything --- even dongled software) defeat state of the art cd protection schemes (beyond the scope of this posting) and then other individuals rip out unnecessary items such as cd audio and movies (in the case of games); examples and walkthroughs (in the case of applications).

Piracy standards for games currently allow for releases to be 50 disks x 2.88 mbs (in other words, the final product in archived format can be 50 disks that are each 2.88 megs each). This is done to keep release sizes reasonable as to allow dial ups to still download the releases and to provide a challenge to the top release groups.

Pirated materials are most commonly spread by high speed FTP (file transfer protocol) transmission in an extremely efficient manner. For example, a warez release by a highly regarded group in europe of a highly anticipated game or app will spread around the world (from 0 day T-3 distros by dedicated high speed courier groups) in a matter of hours. In addition this distribution is free monetarily. The rapid spread of cheap cable modems and ethernets on campuses (campii?)allows anyone to run a 'site' or to just download/upload whatever in a short amount of time with miniscule chance of being caught.

The other format is known as the ISO format (think exact cd image). And this is also distributed in a similar manner. With an ISO, the end user receives an exact replica of the program/game as if he had purchased the cd retail.

Music is the most easily pirated of all entertaiment. Here cd music tracks are easily (anyone can do this) "ripped" in a conversion process that essentially converts a 50 meg .wav file to a 4 meg .mp3 file with very little loss of sound quality. This smaller size makes it very convenient to download. Even a dialup connection can get a file in 30 minutes.

Another relatively new entrance on the piracy frontier (for me at least), is the advent of pirated movies and VCDs (video cd's). Bootleg movies of movies currently in theaters (in the form of screeners that get leaked--think high quality test/pre marketing video tape, telesyncs--professional camera in the film booth, or even crappy camcorder takes), digitized versions of material found in your video store, and ISO copies of retail VCDs, now are common commodities on the piracy channels. Here for-profit piracy is more common as foriegn traders are eager to obtain new American movies for resale.

The point of examing this methodology is that at no point is direct cd copying necessary. Granted direct cd copying often occurs after transmission takes place, but at this point someone is just making a copy onto cheap cdr media.

So a recap: HST (assuming it was a finacially viable company) can only hope to stop direct copying. If they are able to do that, people who don't want to purchase X will turn to high speed transmission ($40 a month for cable modem access compared to $20 month for a dialup) for X.

Ask yourself, what portion of the overall piracy problem does direct cd copying comprise? If you're smart enough to use a cd copier your most likely aware of the other methods for obtaining X.

Finally, I don't need to address other issues of the company's viability as the last several months of messages indicate.

btw, I'm really surprised that nothing material has happened with the company... and that the biggest enthusiast *cough* promoter *cough* for this company is conspicuously silent....
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