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To: afrayem onigwecher who wrote (429)3/17/2001 8:52:02 PM
From: StockDung  Respond to of 609
 
"Earlier this year, BMG Germany failed in a similar attempt to create protected CDs using technology from Israeli security firm Midbar. After shipping 130,000 copy-protected CDs, BMG abandoned its project in January as complaints piled up from customers, who said the discs wouldn't work on their players.

Record company prepares to sell copy-protected CDs
Posted by TheDareDevil on Monday 11 December 2000

Source: CNet News

Country music record company Fahrenheit Entertainment said it will begin selling copy-protected CDs by early next year using encryption technology from SunnComm, a little-known company based in Phoenix.

If successfully employed, SunnComm's technology could become the first to hamper the copying of CDs onto the Internet--a practice described as one of the music industry's greatest obstacles in its war against piracy. Nearly all of the music shared on the Internet through programs such as Napster comes from CDs, which can easily be copied, or "ripped," as MP3 files.
SunnComm said that the technology will also prevent people from copying, or "burning," albums onto other CDs but would not block them from recording songs onto cassette tapes.

Record labels have long sought a method of preventing CDs from being directly copied into digital formats, but techniques to date have run into compatibility problems with some CD players that were not built with security in mind.

Few industry analysts have heard of SunnComm or feel confident about the ability of any technology to produce copy-protected CDs. Other companies such as Liquid Audio have developed technology to prevent the duplication of music bought in digital, downloadable format, but none are known to have successfully applied the technology to CDs sold in stores.

Earlier this year, BMG Germany failed in a similar attempt to create protected CDs using technology from Israeli security firm Midbar. After shipping 130,000 copy-protected CDs, BMG abandoned its project in January as complaints piled up from customers, who said the discs wouldn't work on their players.

John Aquilino, chairman of SunnComm, said he was familiar with BMG Germany's attempt and feels confident that his company's technology will not suffer the same fate.

None of the HTML-coding and contents you see on this site may be reproduced
without the written consent of CDRaiser.

google.com



To: afrayem onigwecher who wrote (429)3/17/2001 9:15:27 PM
From: StockDung  Respond to of 609
 
Copy-Protected CDs Taken Back
by Chris Oakes
3:00 a.m. Feb. 3, 2000 PST
BMG Germany says it has a major piracy problem on its hands, blaming rampant copying of audio CDs for a drop in music sales. That's why the German division of the U.S. record label decided to give copy-protection technology a try.

The company debuted the first copy-protected audio CDs last week in German music stores.

By week's end, the company was faced with a backlash from consumers complaining that some of the copy-protected CDs were unplayable.

"The consumers started getting back saying it doesn't play on car CD players and several types of normal players," said Matthias Immel, head of product coordination and new media at BMG Germany. "We were really shocked."

Approximately 100,000 protected CDs were sold, and 3 to 4 percent were returned, Immel said.

Copy-protection technology is meant to prevent computer users from copying music CDs, but it has yet to see widespread deployment in commercial CDs. The BMG test was limited to the German market.

Immel said the company's CD supplier felt confident that the copy protection technology, Cactus Data Shield, developed by Israeli software firm Midbar would not cause problems with players.

After testing the copy-locked CDs on 1,000 different players, BMG Germany issued two new rock titles on 24 January. One was from the popular Finnish band Him, whose CD immediately became the No. 1 seller in Germany.

Just as quickly, the company got the word from frustrated consumers. BMG stopped the trial late last week and shipped additional orders of the CDs without copy-protection.

"We wouldn't have done it if it had been clear to us that we would have problems," Immel said. "We don't want consumers to be upset."

Immel said music piracy caused a 9.8 percent slump in sales during the first six months of 1999 over the same period in 1998, citing figures from the International Federation of the Phonographic Industry.

"The more or less obvious reason for the shrinking market is the CD burner issue here," he said.

BMG Germany plans to give copy protection another go. Immel said the company will work with Midbar to develop an alternative CD protection scheme.

Gene Hoffman, founder and CEO digital music distributor EMusic questioned whether piracy was really to blame for the sales decline.

"The ability to copy CDs has been around for at least a year," Hoffman said. "What is the true underlying cause of that decrease in sales? Is it really piracy?"

A critic of copy protection, he said BMG's failed effort was a harbinger for digital music copy-protection schemes such as SDMI.

"With copy protection you drive up the failure rate," Hoffman said. "And I don't think that's going to be acceptable to real customers who are putting out money to buy content."

If piracy is the problem, enforcement of anti-piracy laws -- and fairer pricing of music in the first place -- are better solutions, according to Hoffman.

He further predicted that other copy-protection schemes -- most notably the still-missing Secure Digital Music Initiative -- would suffer a similar fate in the market.

SDMI representatives were not immediately available for comment.

"It's a cost-benefit to the company. If copy protection can drive 50 percent more sales, then maybe it's worth it," Hoffman said.

google.com



To: afrayem onigwecher who wrote (429)3/17/2001 9:21:10 PM
From: StockDung  Respond to of 609
 
Attacking piracy at the source: CDs
By Gwendolyn Mariano
Staff Writer, CNET News.com
July 28, 2000, 12:55 p.m. PT
URL: news.cnet.com
While the recording industry battles in court to halt online music swapping, it also is seeking to stop digital downloads at their source.

Nearly all of the music traded on the Internet comes from CDs, which can be easily copied, or "ripped," as MP3 digital audio files. Analysts point to CDs as the biggest hole in the music industry's strategy for thwarting online piracy.

Efforts to plug the hole, which have been in the works for years, came a step closer last month when a multi-industry forum known as the Secure Digital Music Initiative (SDMI) accepted the final proposals for the second phase of an audition of anti-copying technologies.

CDs are "a vast source of unprotected content over which nobody has control, and if society at large wants to become pirates, then there's nothing on a technical side that can stop them," said Phil Leigh, a music industry analyst for Raymond James Financial.

The recording industry wants to make it harder for consumers to directly copy CDs, but it faces enormous hurdles. First, any barriers to copying must be "backwards compatible"--meaning the new technologies would have to work on old CD players that don't screen for pirated material, and vice versa.

In addition, the industry must tackle considerable nontechnical issues, including potential consumer backlash and legal uncertainties over curtailing copying for personal use.

Some analysts said the group may already be too late, as individual labels including EMI Recorded Music and Sony Music Group are moving forward with their own copy-protection plans.

SDMI "had an opportunity to set important standards, but…the time is too far gone now," said Eric Scheirer, an analyst with Forrester Research.

But SDMI participants said the group is on track to complete the second phase of recommendations before the end of the year--a major advance for a group that has been dogged by delays.

"The goal is to create a levee, a virtual impediment, that will basically allow music companies to create a value system that consumers should feel good about participating in and lure them away from the sort of open ripping experience that exists," said Talal Shamoon, senior vice president for media at Intertrust and chairman of the perimeter technologies working group at SDMI. "So in that sense, SDMI is very much moving forward."

So far, SDMI's efforts have focused on installing digital "watermarks" on CD tracks that would enable copyright holders to trace illegal copies and to create devices that would refuse to play clones. In its first phase, SDMI selected a watermark system created by Verance Technologies as the global standard.

The "Big Five" record labels--EMI, Sony Music, Bertelsmann's BMG Entertainment, Seagram's Universal Music Group and Warner Music Group--have already licensed Verance's watermarking system, which is again being considered in SDMI's second phase.

A key trial of the technology came earlier this month when a test group, organized by the International Federation of the Phonographic Industry in London, listened to watermarked tracks for audio quality. Results of the test will be announced later this year.

Verance competes with 10 other companies that submitted proposals for the second phase, including EMI, Samsung/MarkAny, Nielsen Media Research and Philips Electronics.

Going solo
In the meantime, some record companies are moving ahead independently with copy-protection plans.

EMI recently struck an agreement with Microsoft to provide more than 100 albums and more than 40 singles for download in the Windows Media audio format during a trial offer.

"We're working very hard to make buying music as easy as stealing music," said Jay Samit, EMI's senior vice president. "And we're also working hard to make stealing a hell of a lot harder."

EMI is testing digital rights management (DRM) technology by using Preview Systems and Liquid Audio, according to Samit, which could eventually be used with CDs.

DRM technology allows a content provider to set permissions on the use of material, such as the number of copies customers are allowed to make and the number of CDs they can "burn"--the process of copying songs from a computer onto a recordable CD.

"Part of what we're testing is what is reasonable for consumers," Samit said. "Does the consumer need to burn a hundred (identical) CDs? I don't think so. Should they be allowed to burn more than one? Probably."

Samit added that EMI is active in the standards process, and its experiment is not a way to work around SDMI; rather, it is a way for the record label to give consumers a viable alternative while SDMI finishes the second phase of its watermark solution.

Warner Music also plans to introduce two encrypted formats for music by the end of the year. One will cover digital downloads; the other uses a new CD standard, DVD audio, which is expected to offer significantly higher audio quality than do current CDs.

Those formats could be the industry's best chances at introducing security, according to Warner executive vice president Paul Vidich, as consumers move from older, unprotected CDs to new, secure formats.

"I would see the CD over a long period of time--five or 10 years--evolving and declining gradually with the new digital download format and the new DVD audio format coming in and taking more of a dominant position," Vidich said.

Although record companies are experimenting, a workable solution to selling copy-protected CDs is clearly a long way off.

That situation was underscored earlier this year in a failed attempt by BMG Germany to push secure CDs using technology from Israeli security firm Midbar.

After shipping 130,000 copy-protected CDs, BMG was forced to abandon the project in January as complaints piled up from customers, who said the discs wouldn't work on their players.

"We had some compatibility problems with 2 to 3 percent of all CD and DVD players," Matthias Immel, head of product coordination and new media at BMG Germany, said in an email. "Some of the CD and DVD players, such as Philips, behaved like ROM drives and were not able to play the CD."

Bertelsmann had used Midbar's Cactus Data Shield copy-protection software. Midbar declined to provide specific technological information on the software, but a company spokeswoman said incompatibility with commercial systems is a generic problem for CD copy protection.

Midbar said it plans to deliver a new version of the Cactus Data Shield that will be compatible with all CD and DVD players.

While BMG Germany waits for the update, other experiments are under way.

Securing giveaways
U.K.-based media and entertainment company The Sanctuary Group and London-based digital commerce service Magex began distributing free, secure CDs last month at concerts given by heavy metal band Iron Maiden, which kicked off its "Brave New World" tour at London's Earls Court.

The CDs, which are playable only on CD-ROM drives, include a compilation of heavy metal songs encrypted by InterTrust Technologies' DRM technology, MetaTrust Utility.

Magex introduced two other CDs this summer. One of the CDs, "Summer Daze," features 12 tracks by various artists and is being distributed for free in conjunction with I-gig.com. The other CD, which also features a range of artists, is being sold over the Internet to raise funds for War Child--a charity organization designed to alleviate the suffering of children in war zones.

These experiments have yet to prove they are viable alternatives for a mass audience, where even minor technical glitches can lead to consumer frustration.>

Leoni Zacks, who attended London's Iron Maiden concert and received one of the free CDs, complained of just such a problem: Her computer did not run the hardware to download the music.

"I was a bit upset that it didn't work," Zacks said in an email. "I was looking forward to listening to the music and looking forward to the interview with Iron Maiden, as I love them to bits."


Predicting the future
Problems such as these lead some analysts to question the entire future of DRM technologies.

"I think what the record industry is going to find is that if they are really going to try to send out the police to chase after copyright holders, they are going to get a public backlash against it," Forrester's Scheirer said. "It's going to cause a lot of public relations problems for them."

Nevertheless, the music industry is clearly not ready to give up, and record labels are preparing for further experiments.

"Copyright-protected CDs are in the first stages of trying to evolve into a standard and methodology that everyone can use," said P.J. McNealy, a senior analyst at Gartner. "It's still in the evolution process."



To: afrayem onigwecher who wrote (429)3/17/2001 9:25:25 PM
From: StockDung  Respond to of 609
 
"There's also the issue of a consumer backlash. When consumers pay $17 for an audio CD, they expect to be able to rip the music into MP3 files and place them on their desktop, said McNealy."

Record company prepares to sell copy-protected CDs
By Cecily Barnes
Staff Writer, CNET News.com
December 11, 2000, 11:25 a.m. PT

Country music record company Fahrenheit Entertainment said it will begin selling copy-protected CDs by early next year using encryption technology from SunnComm, a little-known company based in Phoenix.
If successfully employed, SunnComm's technology could become the first to hamper the copying of CDs onto the Internet--a practice described as one of the music industry's greatest obstacles in its war against piracy. Nearly all of the music shared on the Internet through programs such as Napster comes from CDs, which can easily be copied, or "ripped," as MP3 files.

SunnComm said that the technology will also prevent people from copying, or "burning," albums onto other CDs but would not block them from recording songs onto cassette tapes.

Record labels have long sought a method of preventing CDs from being directly copied into digital formats, but techniques to date have run into compatibility problems with some CD players that were not built with security in mind.

Few industry analysts have heard of SunnComm or feel confident about the ability of any technology to produce copy-protected CDs. Other companies such as Liquid Audio have developed technology to prevent the duplication of music bought in digital, downloadable format, but none are known to have successfully applied the technology to CDs sold in stores.

Earlier this year, BMG Germany failed in a similar attempt to create protected CDs using technology from Israeli security firm Midbar. After shipping 130,000 copy-protected CDs, BMG abandoned its project in January as complaints piled up from customers, who said the discs wouldn't work on their players.

John Aquilino, chairman of SunnComm, said he was familiar with BMG Germany's attempt and feels confident that his company's technology will not suffer the same fate.

"Everyone else has done hardware-based solutions," Aquilino said. "We've altered data at multiple points in the disc to render it incapable of being copied or recognized from the standpoint of data."

Aquilino said his company's solution differs from past technologies in that it does not alter a CD's audio component; it only acts upon other data written to the disc.

"There's a whole lot of data aside from the audio such as the table of contents, and that's the kind of data you're altering," Aquilino said. Those types of data typically need to be read only when copying a disc, not when simply playing it.

Still, Aquilino admits, protected CDs could run into trouble on some players made before 1995.

"I've only had one machine fail, an old, early 1990 Pioneer machine," he said. "But we're not going to pull the project based on that because there's always further development and refinement."

Wooing the record labels
Aquilino said he has been in preliminary discussions with the larger record companies and has received a wait-and-see interest.

"This will be more or less our field test; then we'll be able to show Universal and Warner and the others," Aquilino said. "The industry needs this type of protection desperately."

So far, the Big Five record labels--EMI Recorded Music, Sony Music Group, Bertelsmann's BMG Entertainment, Universal Music Group and Warner Music Group--have taken steps to protect downloadable music. Through involvement with a multi-industry forum, the Secure Digital Music Initiative, the major labels are working to install digital "watermarks" on CD tracks that would enable copyright holders to trace illegal copies and create devices that would refuse to play clones.

Their proposal, however, would not prevent the copying and posting of music taken from store-bought CDs.

"There's nothing like that out there," said Mario Iacoviello, a spokesman for SunnComm. "Whether you purchase it in the store or download it off the Internet, you will not be able to copy it onto another CD if it is manufactured through our encryption software."

If SunnComm's technology is successful and adopted on a wide scale, it could be a huge coup for the recording industry, which has waged a bitter war against copyright violators from numerous fronts.

Still, analysts remain skeptical about any technology's ability to definitively block the copying of audio files.

"Even if they do produce a major-label CD with this format, I can probably guarantee within 24 hours some version of that CD will be on some sort of public forum," said P.J. McNealy, an analyst with Gartner. "This is what hackers like to do."

There's also the issue of a consumer backlash. When consumers pay $17 for an audio CD, they expect to be able to rip the music into MP3 files and place them on their desktop, said McNealy.

Fahrenheit Entertainment, the parent company of Fahrenheit Records, Finer Arts Records and Celsius Records, said it plans to begin releasing protected CDs in the first quarter of 2001, which begins Jan. 1. The labels have released music from country music artists including Willie Nelson and Roy Clark.

google.com
--------------------------------------------------------------------------------



To: afrayem onigwecher who wrote (429)3/17/2001 9:36:14 PM
From: StockDung  Respond to of 609
 
"Macrovision has now renamed AudioLock as SafeAudio. The discs will play on a ROM drive and copy or 'rip' onto the PC's hard drive as compressed code, such as MP3. However the MP3 copy must then meet the SDMI's requirements and not copy through further digital generations."

"According to Macrovision SafeAudio will also be able to block straight digital dubbing from CD to blank CD--if the record industry dares ask for this and so alienate the millions of people who now own a CD recorder."

"Macrovision took part in the recent SDMI meeting in Paris and is planning extensive field trials in the US around May-June ahead of formal proposals to the record industry and music publishers June-July."

"Macrovision has a good track-record on ensuring compatibility with legacy equipment, born from a decade of copy-protecting VHS and DVD movies. But even it works I suspect AudioSafe will quickly become just another challenge for hackers to crack."

Europe: Is it safe?

A victim of its own success, a good security system often becomes sport for hackers writes Barry Fox



FOR AS LONG AS I CAN REMEMBER the music industry has been dreaming of copy protection. It began 30 years ago when the Beatles' Apple Corp (no relation to Apple computers) promised a spoiler to stop people copying Sergeant Pepper onto tape. An inaudibly high frequency signal on the disc would beat with the HF bias in a recorder and put an audible whistle on the tape. Of course it did not work. The HF signal was lost in the disc cutter, or groove, and filtered by the pickup. But the same system was re-invented over and over again. There were also plans to protect FM broadcasts in the same way, even though they cannot carry anything above 15kHz. A French station promised to scare off mosquitoes with ultrasound by radio.

Then we had CopyCode, the CBS system of sucking a notch out of the mid range to trigger a circuit in the recorder and stop it recording. This spoiled the music, and the RIAA and IFPI are still trying to win back cred lost by backing the daft idea.

Then came SCMS, which adds flags to the CD bitstream that tell a compliant digital recorder it can only copy an original disc. Copies will not copy digitally, but there is nothing to stop someone making endless copies of the same original, or using an analogue connection. The Philips dual-well CD Recorder switches automatically to analogue recording mode as soon as it is asked to copy a copy CD.

More recently we have had watermarking, with the SDMI and DVD Audio camps backing a method of altering a wide spread of waveform so that recorders switch off. So the first thing the industry wants to do with its new super-fi toy is compromise the 'fi'. Sony and Philips have already rejected the idea for Super Audio CD.

The SDMI is now finalising controls on the distribution and copying of MP3 music on the Internet. The scheme is so mind-bendingly complex that the first people to understand it may well be the hackers who find a way round it.

Last year the British company CDilla, that specialises in CD-ROM encryption, came up with a copy-killer called AudioLock. CDilla engineers added not-quite CD-ROM codes to a music CD so that it played on a music CD player but not on a PC ROM drive. So there would be no chance of using a PC to copy a CD onto a blank disc, without SCMS. I tested a test pressing and it worked as claimed.

CDilla also reckoned it could doctor the sub-codes to disable the digital output of a music CD player to stop digital dubbing.

Immediately there was outcry from all those who quite legitimately listen to music CDs while working at a PC. And Philips was not pleased to see the prospect of all its CD Recorders put out of action.

Macrovision, the company which specialises in video copy protection, bought CDilla and rethought the idea. Doubtless they were influenced by BMG's unhappy experience in Germany.

Sonopress in Guetersloh pressed two CDs (Razorblade Romance by HIM and My Private War by Philip Boa and the Voodoo Club) using a system called Cactus Data Shield developed by Midbar, of Tel Aviv, Israel. Cactus plays with the Table of Contents and some players, with anti-shock memory, were unable to play the discs, while others could only start from one track.

Sonopress had tested the system by giving discs to employees. No-one had a Philips player and it was only when the discs had been sold that BMG found they would not play on Philips players. BMG had to re-press to keep customers happy. The trade dubbed Cactus a 'Wild West' fiasco.

This mistake was doubly surprising because it came soon after the Sonopress goof on DVD-Plus, a bonded disc made from one CD and half a DVD. This was too thick to play on some decks.

Macrovision has now renamed AudioLock as SafeAudio. The discs will play on a ROM drive and copy or 'rip' onto the PC's hard drive as compressed code, such as MP3. However the MP3 copy must then meet the SDMI's requirements and not copy through further digital generations.

According to Macrovision SafeAudio will also be able to block straight digital dubbing from CD to blank CD--if the record industry dares ask for this and so alienate the millions of people who now own a CD recorder.

Macrovision took part in the recent SDMI meeting in Paris and is planning extensive field trials in the US around May-June ahead of formal proposals to the record industry and music publishers June-July.

Macrovision has a good track-record on ensuring compatibility with legacy equipment, born from a decade of copy-protecting VHS and DVD movies. But even it works I suspect AudioSafe will quickly become just another challenge for hackers to crack.

google.com



To: afrayem onigwecher who wrote (429)3/17/2001 9:38:48 PM
From: StockDung  Respond to of 609
 
Das Tacheles hat Jubiläum und keiner feiert
aus: Berliner Zeitung (http://www.BerlinOnline.de/aktuelles/berliner_zeitung/)
Am Sonntag wird das Tacheles zehn Jahre alt. Einfach so, ohne Jubiläumsfeier und ohne Geburtstagskuchen. Nur im Nebensatz eines Veranstaltungstextes weisen die Betreiber der berühmtesten Ruine Berlins auf ihr Zehnjähriges hin.

Hier mehr

(-ka-)
--------------------------------------------------------------------------------

Audio-CD-Kopierschutz verärgert Kunden und Händler
von: c't (http://www.heise.de/ct/)
BMG Entertainment, die Musikabteilung des Bertelsmann-Konzerns, hat seit kurzem Audio-CDs im Handel, die mit dem Kopierschutz Cactus Data Shield versehen sind. Entwickelt wurde dieser Mechanismus in Zusammenarbeit mit dem israelischen Software-Unternehmen Midbar und Sonopress aus Deutschland. Bislang sind die Alben 'Razorblade Romance' der Gruppe Him und 'My Private War' der einstigen Independent-Heroen Philip Boa & The Voodoo Club betroffen.

Der Kopierschutz verhindert allerdings nicht nur das Auslesen (Grabben) und Kopieren der Audio-Tracks mit dem PC oder das Abspielen auf CD-ROM-Laufwerken, sondern auch die Wiedergabe auf einigen (meist älteren) Audio-CD-Spielern. Ein Leser berichtete c't, dass sein gerade zwei Jahre alter Philips-Player mit einer derartig geschützten CD versagte. Besonders ärgerlich: Nicht auf der Hülle, sondern erst auf der CD selbst findet man den Hinweis 'Achtung: Kopiergeschützte CD - Nicht am PC abspielbar!' Die Warnung ist ernst zu nehmen: Nach etwa 30 Sekunden bricht der PC den Abspielvorgang ab; auch MP3-Dateien lassen sich nicht erstellen.

Hier mehr

google.com



To: afrayem onigwecher who wrote (429)3/17/2001 9:42:31 PM
From: StockDung  Respond to of 609
 
º¹»ç ¹æÁöµÈ À½¾Ç CD ÃâÇö
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google.com



To: afrayem onigwecher who wrote (429)3/17/2001 9:45:30 PM
From: StockDung  Respond to of 609
 
Inventan sistema para cifrar CDs de música

1 de Febrero de 2000

DiarioTi.com (01.02.2000): El sello discográfico alemán BMG Entertainment ha implantado un sistema de protección digital de discos compactos, que impide copiar sus contenidos ilegalmente a discos duros. Sin embargo, el sistema parece ser demasiado eficaz.

Las intenciones son impedir la copia no autorizada de CDs de música hacia discos duros, que hasta ahora ha sido posible sin implicar un procedimiento excesivamente laborioso. La protección dada a los CDs es obtenida mediante una tecnología denominada Cactus Data Shield, desarrollada por las compañías Midbar y SonoPress.

Sin embargo, la protección que brinda Cactus Data Shield ha resultado en algunos casos, referidos por la prensa alemana, en que reproductores antiguos de discos compactos no han podido hacer audibles sus contenidos.

Una segunda observación es que los discos protegidos están marcados de manera tan deficiente que muchos compradores, propietarios de equipos estéreo antiguos, adquieren CDs que, para su caso particular, son inservibles debido a la protección que incorporan.

En su sitio web, Midbar escribe que su especialidad es brindar a la industria discográfica y a interpretes/autores las soluciones que hagan posible proteger su propiedad intelectual. La compañía indica que la tecnología Cactus Data Shield es fácilmente implantada en el proceso de producción, y que la calidad del sonido no se ve afectada.

Sitio relacionado

midbartech.com

© noticiasMP3.com 1997-2000



To: afrayem onigwecher who wrote (429)3/27/2001 4:15:21 PM
From: StockDung  Respond to of 609
 
So how is the alleged cartel makin out today? I see that SKUP/PFER is at 3.1 cents. You would have thought it would have collapsed by now.

CHEERS CHUMP!!

Winehouse's Alleged Scheme

tourolaw.edu
The complaint alleges that defendant Isaac Winehouse, doing business as Wall & Broad Equities, organized a "cartel" to purchase a percentage of the Nu-Tech convertible preferred in the names of nominees. He then allegedly arranged for a number of securities firms to become market makers in Nu-Tech common stock and proceeded to sell the common short, allegedly to drive the price of the common stock down.

The Dealings Among Nu-Tech, Winehouse and Plaintiff

Plaintiff Mordechai Gurary purchased 1,000 shares of Nu-Tech common on October 31, 1996 and another 5,500 shares on November 7, 1996 at $14.60 and $15.50 per share, respectively. In or about December 1996, the stock price began to decline. A concerned Gurary spoke to J. Marvin Feigenbaum, chairman of Nu-Tech. Feigenbaum told him that he had spoken to Winehouse and threatened that Nu-Tech would refuse to register the common stock into which the preferred was convertible unless Winehouse and his group stopped shorting the common. He predicted that this threat would convince Winehouse to stop shorting the stock because a refusal to register the common issued upon conversion would force Winehouse to cover his short position by purchasing Nu-Tech common in the open market, perhaps at higher prices. Gurary, evidently comforted, then purchased another 1,000 shares on December 24, 1996 at a price of $11.75 per share.

Gurary claims subsequently to have learned that Winehouse and his associates had continued to short the stock using nominee names, having arranged to "borrow" an unlimited number of shares for that purpose from market makers. On February 18, 1997, Gurary again spoke to Feigenbaum, who told him that he had met that day with Winehouse and others in another attempt to stop the short selling. Feigenbaum told Gurary that Nu-Tech had offered to repurchase the group's preferred shares at cost plus ten percent and to allow it to keep its existing profits from the short sales if the group would stop its activities but that Winehouse had refused. Feigenbaum, however, told Gurary that Nu-Tech would not give in to Winehouse and would refuse to register the short sellers' shares. Later that day, Gurary bought another 8,350 shares of Nu-Tech common at a price of $11.57.

On March 12, 1997, Feigenbaum and another Nu-Tech board member met again with Winehouse and asked that Winehouse and his group accept registration of the common stock into which their preferred was convertible over a period of twelve months rather than insisting that it be registered immediately. Winehouse again refused and said that he would continue to sell short.

Nu-Tech common stock dropped approximately $6 per share over the next two days. On March 14, 1997, the company issued a press release which stated that the price decline could be attributed to "possible sales by shareholders." No mention was made of the discussions between Nu-Tech and Winehouse, allegedly to avoid disrupting Nu-Tech's efforts to acquire Physicians Clinical Laboratory, Inc. ("PCL") out of bankruptcy.

A few days later, Gurary was approached through an intermediary and spoke with Winehouse, who allegedly admitted to him that he deliberately had shorted the stock to drive the price down, said that he intended to continue, and advised Gurary to sell his shares because the price would drop to "a dollar."



To: afrayem onigwecher who wrote (429)3/27/2001 6:06:45 PM
From: StockDung  Respond to of 609
 
What was with that HUGE VOLUME today Iaasic? Problems holding together the CARTEL?

It reminded me of the Jews mass exodus out of Egypt and the parting of the red sea.

CHEERS CHUMP!!

Truthseeker, humble servant of the Lord.

Waiting for the Judgment Day!!



To: afrayem onigwecher who wrote (429)3/28/2001 7:08:22 PM
From: StockDung  Read Replies (1) | Respond to of 609
 
Tue Oct 24, 2000: TTR Technologies Rated New “Accumulate” at Brean Murray
google.com

BREAN MURRAY
google.com

INVESTMENT BANKING PERSONNEL
Contact Phone Number e-Mail
Cliff Condrey (212) 702-6627 condreyc@bmur.com
Joan Finsilver (212) 702-6503 finsilverj@bmur.com
John Fletcher (212) 702-6521 fletcherj@bmur.com
Christopher Illick (212) 702-6680 illickc@bmur.com
John Moore (212) 702-6606 moorej@bmur.com
Tom Remien (212) 702-6572 remient@bmur.com
======================================

ILLICK CHRISTOPHER filed this 3 on 03/27/2001.
tenkwizard.com

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
--------------------------------------------------------------------------------
1. Name and Address of Reporting Person* Illick Christopher
--------------------------------------------------------------------------------
(Last) (First) (Middle) 2 Hanagar Street
--------------------------------------------------------------------------------
(Street)Kfar Saba Israel
--------------------------------------------------------------------------------
(City) (State) (Zip)
--------------------------------------------------------------------------------
2. Date of Event Requiring Statement (Month/Day/Year) July 20, 2000
--------------------------------------------------------------------------------
3. IRS Identification Number of Reporting Person, if an entity (Voluntary) --
--------------------------------------------------------------------------------
4. Issuer Name and Ticker or Trading Symbol TTR Technologies, Inc. - ttre
--------------------------------------------------------------------------------
5. Relationship of Reporting Person to Issuer (Check all applicable)
|X| Director |_| 10% Owner
|_| Officer (give title below) |_| Other (specify below)
--------------------------------------------------------------------------------
6. If Amendment, Date of Original (Month/Day/Year)
--------------------------------------------------------------------------------
7. Individual or Joint/Group Filing (Check applicable line)
|X| Form filed by One Reporting Person
|_| Form filed by More than One Reporting Person
================================================================================
--------------------------------------------------------------------------------
Table I -- Non-Derivative Securities Beneficially Owned
--------------------------------------------------------------------------------
3. Ownership Form:
2. Amount of Securities Direct (D) or
1. Title of Security Beneficially Owned Indirect (I) 4. Nature of Indirect Beneficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 4)
------------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
* If the Form is filed by more than one Reporting Person see instruction5(b)(v).
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly. Page 1 of 2
FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
------------------------------------------------------------------------------------------------------------------------------------
5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Security Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 6. Nature of
---------------------- or Exercise (D) or Indirect
Date Expira- Number Price of Indirect Beneficial
1. Title of Derivative Exer- tion of Derivative (I) Ownership
Security (Instr. 4) cisable Date Title Shares Security (Instr. 5) (Instr. 5)
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
Common Stock Option 7/20/01 7/20/10 Common Stock 8,000 + D --
------------------------------------------------------------------------------------------------------------------------------------
Explanation of Responses:
/s/ Christopher Illick 3/26/01
--------------------------------------------- -----------------------
** Signature of Reporting Person Date
+ The options were issued under the TTR's 1998 Non-Executive Directors'
Plan. The option with respect to 4,000 shares is exercisable in July 2001
and the options with respect to the remaining 4,000 shares is exercisable
in July 2002, in each case at a per share exercise price of $5.72.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, See Instruction 6 for procedure.
Page 2 of 2

=====================================


TTR's antipiracy technology could be music to the labels' ears
Posted by TheDareDevil on Wednesday 15 November 2000

Source: TTR Techologies Inc.

TTR Technologies, a little-known company whose stock trades on the Nasdaq but is headquartered in Israel, expects to be a major beneficiary of piracy. Far from being a bootlegger, TTR (NASDAQ: TTRE), has developed antipiracy technologies -- digital solutions that prevent illegal copying of audio content onto optical media, such as CD-ROMs or digital video disks (DVDs). The need for such technology is urgent: In the music industry alone, some analysts estimate that piracy cost some $5 billion in 1998.
Ashish R. Thadhani, an analyst at New York investment firm Brean Murray, notes that content piracy has been exacerbated by two recent developments: The increasing use of MP3 compression technology to transmit illegal recordings via the Internet and the sharp drop in the price of CD recording equipment, called CD burners, which are now commmonly bundled with desktop PCs or can be purchased separately for around $180.

"To our knowledge, there's no technology currently available that provides copy protection for audio CDs other than TTR's," says Thadhani. So the music industry, dominated by such major recording labels as Universal, Sony, EMI, Warner, and Bertelsman Music Group, has been desperate to find a solution to the problem.
=======================================

I guess Thadhani did not read this thread?

Christopher Illick a director of TTRE and they wrote a buy report? I did not see that disclosed anywhere?

CHEERS CHUMP!!