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To: Arrow Hd. who wrote (5095)	5/1/1999 4:48:00 AM
From: Walter Morton	Respond to of 8218

"Several such negotiations, technology evaluations and selections relevant to secure online music are said to be actively proceeding between major labels and technology companies — all outside of SDMI. A case in point is digital watermarking. Working closely with the five major record labels on encryption and watermarking choices for the DVD-Audio standard, an entity known as the 4Cs — namely, IBM, Intel, Matsushita and Toshiba — began its second round of testing on watermarking technologies this past Monday (April 26). Although the goal of the 4Cs is to identify the appropriate digital security measure for DVD-Audio, sources said the group's decisions, backed by the five major record labels, are likely to be embraced by SDMI. "I believe that it's a reasonable approach for the SDMI to follow the DVD-Audio path," said Paul Goldberg, vice president of audio products at Zoran Corp. (Santa Clara, Calif.). "It certainly wouldn't be wise to ignore [their work]." However, he cautiously added, "Would it define the SDMI spec? I don't know." "Whether to include watermarking as part of the initial, fast-track SDMI spec is a hotly debated issue, according to many industry sources. Yet those familiar with the 4Cs' ongoing watermarking tests noted that the partners' decision is likely within 45 to 60 days." Message 9257958