Re: 10/10/03 - [STEH] SunnComm: SunnComm Technologies Reverses Decision to Bring Legal Action against Princeton Researcher
10/10/2003, 11:50
SunnComm Technologies Reverses Decision to Bring Legal Action against Princeton Researcher
According to SunnComm CEO, legal action would not repair the damage done and could potentially cause a "chilling effect" on the type of research that faculty, staff, and students of institutions of higher learning elect to pursue in the future.
PHOENIX, Ariz., October 10, 2003 — SunnComm Technologies, Inc. (OTC:STEH), a leader in digital content security and enhancement for optical media, announced today it will not seek legal remedies against Princeton researcher Alex Halderman. SunnComm believes Halderman wrote an inaccurate critical report of its recently released MediaMax™ CD-3 Copy Management technology (V1). Mr. Halderman included in his research report several methods of circumventing the MediaMax music file security used to slow down the casual copying of unprotected files. Because Mr. Halderman felt the file security was too easily bypassed, he deduced the product failed in its primary marketing mission. In actuality, MediaMax, which has been licensed to BMG Music, one of the world’s largest record companies, as well as other labels, performed exactly according to its Version 1 design specifications. SunnComm felt that Mr. Halderman missed the fundamental goal of MediaMax – to provide CD buyers with a licensed and legal method of making and sharing authorized copies of the music they purchase.
Prior to the development and release of MediaMax this year, the only way to obtain a digital copy of the music on a CD was to “rip” the music from the disc to the hard drive of a personal computer which produced a copy in an unsecured format. The resulting music files could then be copied ad infinitum, making unauthorized discs, and moving the content to illegal P2P file sharing networks. These issues have been the fundamental cause of the piracy issue for the music industry.
With MediaMax CD-3 Technology, users can opt to make legal and licensed copies of the music and have this content stored in a secure format. This secure format allows the consumer to listen to the music, copy the files to the computer, move the content to a compatible player device, share a controlled copy with a friend by e-mail and even make a limited number of extra CD’s for personal use. These features and the flexible functionality were designed to offer the consumer a reasonable alternative to violating the copyrights of their favorite artists and avail themselves of the additional “bonus” features included as a component of the product.
SunnComm president, Bill Whitmore stated, “A technology has not yet been invented that will keep all those individuals from appropriating the unprotected music without limitations if they intend on taking it that way. MediaMax creates an opt-in “speed bump” of security which encourages licensed music copying and sharing without deteriorating the music experience. With each subsequent version of MediaMax, the “speed bump” will have improvements in security, as well as consumer friendly functionality.”
Whitmore concluded, “I feel that this is a very important distinction which was overlooked in Mr. Halderman’s report when it was disseminated with Princeton University’s consent. Had Mr. Halderman evaluated the product as a copy management solution that was purposely designed to deliver a licensed and legal structure for limited copying and sharing, he would have most likely yielded a different result. Instead of being rated as “flawed” his final conclusion may have found that it performed as it was intended to perform. This insight would have prevented the negative impact on the SunnComm product, reputation and valuation.”
Peter Jacobs, SunnComm CEO said, “MediaMax performs EXACTLY as "advertised" to the companies who purchased it. The ultimate proof will be in the results we obtain from the marketplace - and not in the courtroom. I believe that researchers should have consequences for inaccurate research they perform and publish that result in damage to others. Because SunnComm is, itself, a company which relies on research and development for its survival, we feel that bringing legal action for damages against researchers in a higher learning environment may contribute to a chilling effect on the type of research that faculty, staff, and students elect to pursue. Therefore, we´ve decided to move along and not pursue legal remedies in deference to "the bigger picture." SunnComm directors and employees feel that research plays an incredibly vital role at SunnComm and in our society, and we need to do everything we can to nurture it.”
Jacobs concluded, “We realize now that Mr. Halderman had mistakenly expected to be researching an “extremely hack resistant” copy protection product when he evaluated MediaMax -Version1. SunnComm’s security features, though scheduled to be more robust with each MediaMax upgrade, have always placed second in importance to achieving SunnComm’s goal of near-universal playability and the delivery of an exceptional consumer experience. The “marching orders” we received from the music industry was to build an integrated system for the vast majority of consumers who, when given the option, would elect to use a licensed and legal method for accessing their CD music because, in doing so, they would be honoring the wishes of their favorite artists. For the first time in America, MediaMax gives CD buyers a structure to make that choice.”
MediaMax CD-3 is a collection of technologies that provides copy management for CDs and DVDs, while simultaneously enhancing and expanding the consumer´s experience. MediaMax CD-3 is tightly integrated with Microsoft´s (NASDAQ:MSFT) Windows Media Platform and the Digital Rights Management capabilities associated with the latest Windows Media Platforms. SunnComm licenses and uses Windows Media Audio DRM capabilities from Microsoft Corporation as the security feature for music files which end up residing on the consumer’s computer.
ABOUT SUNNCOMM
SunnComm Technologies Inc. became the first company to commercially release a content-protected audio CD utilizing an early version of the Windows Media Data Session Toolkit. SunnComm’s copy-management technology was commercially released by Music City records in 2001, which became America’s first copy-protected audio CD. It has become a leader in digital content enhancement and security technology for optical media with its MediaMax CD-3 suite of products.
SunnComm´s MediaMax CD3 Suite of Digital Content Enhancement technologies are built using Microsoft (NASDAQ:MSFT) Windows Media 9 Series, but operates on both Apple (NASDAQ:AAPL) and Windows-based systems. For more detailed information about the company, its vision or philosophy, personnel, partners, and customers, please visit the company´s Web site at sunncomm.com, or call the company directly at (602) 267-7500, and ask for shareholder relations.
MediaMax Digital Content Cloaking Technology, DC2, PromoPlay and SunnComm are registered and/or trademarks of SunnComm Technologies Inc. in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
NOTES ABOUT FORWARD-LOOKING STATEMENTS
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment.
We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance or expectations expressed or implied by such forward-looking statements.
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