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BMG and Reciprocal Forge Strategic Relationship For Digital Download Services.


Business & Entertainment Editors

NEW YORK--(BUSINESS WIRE)--April 6, 2000

BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health)
BMG Be My Girl
BMG Blue Man Group
BMG Bertelsmann Music Group
BMG Be My Guest
BMG Browning Machine Gun
BMG Bulk Metallic Glass
 Entertainment First Major Label to Make Music Available

Through Reciprocal's DRM (1) (Digital Radio Mondiale) A digital audio broadcasting (DAB) system for AM radio in Europe. See HD Radio.

(2) (Digital Rights M
 Services on IBM's EMMS EMMS Electronic Media Management System (IBM)
EMMS Electronic Music Management System
EMMS Express Mail Military Service (US Postal Service)
EMMS Electronic Mail and Message System
 Platform

Reciprocal, the global leader in digital rights management (DRM) transaction services, and BMG Entertainment today announced a strategic partnership in which Reciprocal will provide BMG Entertainment with digital clearing services for online digital downloading. The relationship enables Reciprocal to provide BMG with digital clearing services, including packaging, account and customer information management, financial clearing and systems integration.

Beginning this summer, BMG Entertainment will be the first customer to use Reciprocal's services based on IBM's Electronic Media Management Systems (EMMS). By leveraging IBM's EMMS with Reciprocal's Digital Clearing Service, BMG will launch with rich content comprising current hits and catalog product for sale through online retailers, enabling consumers to conveniently receive and enjoy music from top artists through next-generation software and hardware products. The companies plan to support the goals of the Secure Digital Music Initiative Secure Digital Music Initiative (SDMI) was a forum formed in late 1998, comprised of more than 200 IT, consumer electronics, security technology, ISP and recording industry companies, ostensibly with the purpose of developing technology specifications that protected the  (SDMI (Secure Digital Music Initiative) A set of rules for securely distributing digital music over the Internet. Announced in February 1999, it is backed by the Recording Industry Association of America (RIAA) and Sony, Warner, BMG, EMI and Universal, the top five )

"We are proud to partner with BMG and look forward to working closely with them to create a rich, integrated music experience for artists, retailers and consumers," said John SchwarzJohn F. Schwarz is the name of:
  • John Schwarz, chief executive officer of Business Objects
  • John Schwarz, Mayor of Savannah, Georgia, from 1889 to 1891
  • John Henry Schwarz (born 1941), American theoretical physicist
, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Reciprocal. "Our strategic relationship with BMG underscores Reciprocal's commitment to offer leading content companies the technology platforms they feel best meet their business needs."

A significant driving force behind BMG's strategy is to establish business relationships that will create an environment that enables BMG's current and future retail partners to integrate efficiently with BMG's systems for digital distribution.

"We evaluated and tested many different technologies and clearinghouses in order to make this important and exciting first step toward making our music widely available through digital downloading," said Kevin Conroy Kevin Conroy (born November 30 1955) is an American actor of stage, screen, and voice, perhaps best known for his portrayal of DC Comics superhero Batman in numerous animated series and features that comprised the DC animated universe. , Sr. Vice President, Worldwide Marketing and New Technology, BMG Entertainment. "We're pleased to partner with Reciprocal, and are confident that our relationship will enable us to provide the consumer with the best possible experience while protecting our artists' rights."

BMG's strategy is rooted in an effort to provide direction to the consumer electronics, software and retail sectors, while promoting a high level of interoperability between key elements of the digital distribution value chain. To this end, two key elements of BMG's partnerships are commitments from technology providers to widely license their products on a non-exclusive basis, and for clearinghouse operators to support multiple technologies. This is consistent with BMG's desire to foster a competitive digital marketplace in which business considerations drive the development of new technology and services.

Reciprocal's Digital Clearing Service features a flexible and reliable clearing system that tracks the sale of digital content, and manages access and usage privileges as designated by the content owner. The clearing service is capable of conducting millions of financial and information transactions per day.

"We're excited to be working with Reciprocal to accelerate the digital distribution of music," said Richard K. Selvage, general manager, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  Global Media & Entertainment Industry. "EMMS is a proven platform and we welcome BMG's endorsement as our first customer."

Added Reciprocal Music President, Larry Miller Larry Miller is the name of several notable people:
  • Larry Miller, American comedian and actor
  • Larry Miller, a Canadian politician
  • Larry Miller, an athlete from Antigua and Barbados
  • Larry Miller, an American engineer
, "BMG is a prime example of a multimedia music company that is maximizing Reciprocal to compete effectively in online commerce with digital rights management. We're excited to provide the tools for BMG to distribute its content over the Web."

About BMG

BMG Entertainment is the $4.6 billion worldwide music and entertainment division of Bertelsmann AG Bertelsmann AG

German media company. Beginning as a religious printer and publisher in 1835, the company grew steadily over the next century. Though virtually destroyed by Allied bombing in 1945, it recovered quickly after World War II.
, one of the world's leading media companies, with annual revenues of $16.4 billion. BMG owns more than 200 record labels in 53 countries, including Arista Records, RCA Records, Ariola and Windham Hill. BMG has been a leader in using the Internet to bring fans closer to their favorite artists and recently established GetMusic, a joint venture to market artists and sell their music online. BMG also owns the world's largest music club, one of the world's largest music publishing The contractual relationship between a songwriter or music composer and a music publisher, whereby the writer assigns part or all of his or her music copyrights to the publisher in exchange for the publisher's commercial exploitation of the music.  companies, and one of the world's leading compact disc and cassette manufacturing companies. Bertelsmann's North America interests also includes the Random House Inc. book publishing group; and the Gruner+Jahr magazine publishing group, which includes McCall's Family Circle and YM magazines, among others.

About Reciprocal

Reciprocal, the global leader in digital rights management transaction services, provides comprehensive, easy-to-implement e-commerce clearing services and back-office solutions for the music, publishing, software, film, entertainment, and other digital content industries. Reciprocal offers content owners a true outsourced DRM solution that allows them to realize new revenue streams while efficiently protecting their online digital assets.

The Reciprocal Digital Clearing Service leverages leading DRM technology from InterTrust Technologies Corporation, Microsoft Corp., IBM, Xerox Corp., Adobe Systems Incorporated, and Preview Systems, allowing companies to choose the solution that best fits their business needs. Reciprocal Digital Clearing Service is secure, flexible and capable of handling millions of transactions per day. Leading content companies such as Sony, Houghton Mifflin, Reuters and TVT Records have selected Reciprocal as their digital rights management services Windows Rights Management Services (also called Rights Management Services or RMS) is a Microsoft Windows technology that is a form of digital rights management used for protecting documents such as corporate e-mail, Word documents, and web pages.  provider. Privately held, Reciprocal maintains offices in New York City New York City: see New York, city.
New York City

City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S.
, Buffalo, NY and Research Triangle Park Research Triangle Park, research, business, medical, and educational complex situated in central North Carolina. It has an area of 6,900 acres (2,795 hectares) and is 8 × 2 mi (13 × 3 km) in size. Named for the triangle formed by Duke Univ. , NC.

c 2000 Reciprocal, Inc. All rights reserved. Reciprocal, the Reciprocal symbol and Driving the Content Economy are trademarks of Reciprocal, Inc. in the United States and other countries. All other products and companies mentioned are registered trademarks or trademarks of their respective owners. For more information on Reciprocal, visit its web site: http://www.reciprocal.com
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Apr 6, 2000
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