Might be of interest to some of us out there!  Subject: FTP Internet and
Technology News New CD copy-lock technology nears market


New CD copy-lock technology nears market
Published: December 16, 2004, 4:00 AM PST
By
John Borland
Staff Writer, CNET News.com
A new kind of copy-protected music CD will likely hit U.S. shelves early
next year,
as record label SonyBMG experiments with a technology created by British
developer
First 4 Internet, according to sources familiar with the companies.
Several major music labels have already used a version of the British
company's technology
on prerelease compact discs distributed for review and other early-listening
purposes,
including on recent albums from Eminem and U2.
The releases for the retail market, expected early in 2005, will be the
first time
the Sony music label issues copy-protected CDs in the U.S. market, although
the company's
other divisions have done so in other regions. BMG, Sony's new corporate
sibling,
has been more aggressive, with a handful of protected CDs released last
year.
"We have always focused on a high level of protection, but we've waited
until there
aren't any playability issues."
--Mathew Gilliat-Smith,
CEO, First 4 Internet
A SonyBMG representative declined to comment on the plans. First 4 Internet
Chief
Executive Officer Mathew Gilliat-Smith confirmed that
his company
 plans to release a consumer version of its technology with one major label
in the
United States, but he declined to identify the label.
Gilliat-Smith said his company has been waiting to improve its technology.
Better-known
companies Macrovision and Sunncomm have seen sporadic--and sometimes
controversial--use
of their products on CDs released around the world.
"We're not keen to rush," Gilliat-Smith said. "We have always focused on a
high level
of protection, but we've waited until there aren't any playability issues."
The new SonyBMG experiments are a further sign that copy protection on music
CDs
may be moving closer to the mainstream U.S. market. The practice is much
more common
in European and Asian markets.
For several years, the major record labels have sought a way to protect CDs
against
unrestricted copying and "ripping," or transforming songs into files such as
MP3s
that can be swapped widely online. Early experiments proved unpopular,
prompting
reports that the discs could not play in certain kind of stereos, or might
even
damage computers
.
The past year has seen resurgent signs of interest from the major labels,
however.
A watershed moment in the United States came when the BMG-released Velvet
Revolver
album
reached the top of the industry's sales charts
, despite being clearly marked as copy-protected. Industry insiders said
that helped
assuage some boardroom concerns about potential consumer backlash.
Questions remain about the appropriate technology to use, however. The copy
protection
from Sunncomm, used by BMG in the United States, could be fairly easily
disabled
simply by
pressing a computer's Shift key
 while the CD was loading, for example. That issue has been fixed in the
company's
most recent
version of its products.
It also may be a tricky job to make rules associated with copy-protected
discs match
those associated with songs purchased from online stores such as Napster or
Apple
Computer's iTunes. Those stores allow their customers to burn CDs that can
then be
copied without restriction; by contrast some labels want to limit the number
of times
a copied CD can be duplicated again--a technology called "
secure burning
."
First 4 Internet's entry into the market marks a potentially new twist on
the basic
technology, however. The company got its start by offering a tool to
identify pornographic
images in Web sites and e-mails, and selling the technology to Web-filtering
companies
for their own products.
The company has been working on the disc-protection technology since 2001,
following
conversations with the EMI record label, Gilliat-Smith said. The technology
wraps
ordinary song files in strong encryption, but in a way that still allows
regular
CD players to read them. Another part of the disc contains data files that
help improve
protection.
The company has worked particularly closely on prereleases in the U.S.
market with
Universal Music. First 4 Internet's U.S. representative said the
copy-protection
technology has been included on a number of extremely high-profile CDs while
in the
review and demo stage, without being broken.
"Could it be broken? I'm sure that somebody must be able to do it," said
Graham Oakes,
the head of Los Angeles-based Ezee Studios, which represents First 4
Internet. "But
is there a generally known hack that has been put on the Net, or have any of
the
record label IT people found a hack yet? No."
Analysts remain skeptical that labels will ultimately launch copy-protected
discs
on a widespread level in the United States, citing continued consumer
opposition
and the delicate technological balancing act between strong protection and
universal
compatibility with CD players.
"If there's something that isn't going to play in every CD player that's out
there,
it's going to create a backlash," said Jupiter Research analyst Michael
Gartenberg.
"If it's easy to defeat, then that doesn't bode well for why you released it
in the
first place."
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