Could Audio Watermarking Help Make MP3s Free?
A technology mostly associated with crackdowns on music and movie pirates could 
instead be used to help make multimedia content free--and file-sharing legal.
Eric Lai, Computerworld

ic and movie pirates could instead be used to help make multimedia content free 
-- and file-sharing
legal.

So claims a small 
Seattle
 firm, 
Activated Content Corp.
, which appears to be the leader in the small but growing field of audio 
watermarking.

Audio watermarking involves taking a song and manipulating it digitally to 
create an audio pattern that is unmistakable to the right software -- such as
Activated's -- though undetectable by human ears.

"You can't hear it, so you don't know it's there," said 
Eric Silberstein
, CEO of the 12-employee, seven-year-old company. Moreover, because the 
watermark becomes part of the audio itself, it is much more difficult to remove
than, say, a text string embedded in a digital file, such as the ID3 metadata 
tags that 
Apple Inc.
's 
iTunes
 embeds in songs.

Only "if you had a Cray supercomputer and a month and a half" could you break 
Activated's watermarks, claimed Silberstein.

Other experts claim that a well-crafted audio watermark can even survive being 
rerecorded using an analog cassette deck with a relatively low-fidelity 
microphone.

A DRM alternative

Audio watermarking has gained some popularity over copy protection and other 
digital rights management (DRM) schemes, which can sometimes prevent music
from being played depending on the device, according to 
Eric Garland
, CEO of BigChampagne LLC, an online media research firm.

But audio watermarking today remains a niche application. For instance, many 
record companies are "slavishly devoted" to placing audio watermarks on any
advance albums they send out, and on master or prerelease copies floating 
around inside their offices, Garland said.

"I've heard record company employees tell me that if their copy is lost and 
turns up on the Internet, it will get hunted down and they will lose their job,"
he said.

But audio watermarking has its limitations, Garland said. One is its relatively 
high cost per disc, currently at least. The other is that audio watermarking,
while it has enabled record companies to gather oodles of evidence on consumers 
illegally file-sharing music, doesn't overcome the fundamental problem
-- that starting to sue pirating consumers on a mass scale would create an even 
bigger "backlash," Garland said.

Silberstein says that the record industry is finally starting to accept that 
overhauling the business model is the way to move forward. How does he know?
Because of the many record companies, large advertisers and cable and 
mainstream broadcasters that are licensing audio watermarking technology from 
Activated
in preparation for trials that would allow consumers to download unprotected 
music or movies in which the content as well as the advertising is tracked
using audio watermarks. Some of those companies, including 
Sony Music
 and Universal Music are listed on Activated's site, and many others are 
operating under nondisclosure agreements, according to Silberstein.

>From piracy to promotion (and back?)

The tracking technology allows advertisers to gather information about the 
consumer and the effectiveness of the ad. Such data, according to Silberstein,
is so valuable that advertisers would be willing to pay five to 10 times rate 
of a regular ad for an watermarked ad. That data works particularly well
with "call-to-action" type of ads, in which consumers, after listening to an 
ad, respond or click on a link to buy something or otherwise opt in to the
advertiser's campaign, Silberstein said.

"What content owners have been afraid would reduce their income is now an 
opportunity to increase their income," Silberstein said.

It also suddenly turns pirates from forces that hurt a record company's bottom 
line into unpaid marketers on their behalf.

Record companies publicly listed as Activated clients include Sony Music and 
Universal Music Group
. The latter 
said
 last week that it will test the sale of thousands of songs for the next 
half-year without copy protection. Silberstein declined to confirm whether 
Universal
is placing audio watermarks in those songs.

While Activated already had its own patented technology to allow broadcasters 
to deliver audio watermarks on the fly, it announced Wednesday that it would
license audio watermarking technology developed by 
Microsoft Corp.
's Research division.

That technology, Silberstein said, is key because it creates simpler watermarks 
that can be decoded by MP3 players in smart phones, not just full-fledged
PCs. Smart phones that can natively detect Activated watermarks will start 
appearing by early next year, he said.

Silberstein promised that the price Activated charges -- it not only sells its 
software to record labels, advertisers and broadcasters, but also charges
per transaction it handles on their behalf -- will not "impede adoption." And 
he pooh-poohed notions that the move toward ad-supported media is just a
ruse designed to gather information on pirating consumers in order to someday 
crack down on them.

"I don't think that's ever going to happen," he said. Fighting piracy is "where 
we started, but the truly important use is the digital linking of consumers
to content owners."

http://www.pcworld.com/article/id,136017-pg,1/article.html

Vikas Kapoor,
MSN Id:[EMAIL PROTECTED], Yahoo+Skype Id: dl_vikas,
Mobile: (+91) 9891098137.
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