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Technology Stocks : WDC/Sandisk Corporation
WDC 139.09-0.8%Nov 21 9:30 AM EST

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To: Ausdauer who wrote (5532)4/22/1999 11:20:00 AM
From: Derek C.  Read Replies (1) of 60323
 
Ausdauer,

I believe that each Compact Flash or MMC has a unique ID protected by a controller. Therefore it is tamper proof. The first generation of MP3 players did not have any means of copy protection that's why for RIO or Pontis this ID does not matter. There are many powerful forces within Music Industry who feel threatened by Internet and they are doing their best to ban these devices. They have the money and power to enforce it trough Legal means. If you notice many of the MP3 music sites are constantly disappearing or moving.

The beauty of SanDisk approach is that it can be used in the next generation Music Players with "Legal" copy protection. I think this is one reason SANDISK did not participate in the first generation MP3 players.

SanDisk has been emphasizing Backward and Forward compatibility and copy protection in their press releases:

FROM LGE Press Release:
We believe that LG Electronics' choice of incorporating SanDisk's removable MultiMediaCard capability suggests that it is an ideal solution for these MP3 portable players. With guaranteed forward/backward compatibility and copyright protection features, MultiMediaCard has the potential to become the industry standard memory card for the portable MP3 digital audio player market."

From 32MB MMC Press Release:
Chan added that, "copyright protection is an issue that must be resolved for the Internet music player market to gain momentum. Since SanDisk already includes an on-board controller in every product which carries a unique serialization feature, a solution is already in place which satisfies the guidelines of several proposals currently under review by the SDMI. This serialization feature plays a crucial role in creating a unique copy which is bound to the card."

In light of compatibility issues of Smart Media in RIO and Olympus Cameras their foresight has proven to be correct.
Also their Unique ID will not prevent SanDisk from playing in the first generation devices but also guarantees design into the next generation Music Players.

Cheers,

Derek
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