Macrovision Expands Into Copy Protection for Computer Software Through Joint Marketing and Development Agreement with C-Dilla, Ltd.SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 17, 1998--Macrovision Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MVSN MVSN Milizia Volontaria per la Sicurezza Nazionale (Italy) ) announced today a joint Marketing and Development Agreement with C-Dilla, Ltd. of Woodley, UK, developers of copy protection technology for CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). and Internet-delivered software products. The agreement allows Macrovision, the leader in video copy protection technologies, to expand its intellectual property protection business to include computer software. The agreement gives Macrovision exclusive worldwide marketing rights to C-Dilla's products in the consumer multimedia software market. The two companies intend to jointly develop and market copy protection technologies to help content owners maximize unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of software product distributed on CD-ROM, DVD-ROM DVD-ROM: see digital versatile disc. A read-only DVD disc used to permanently store data files. DVD-ROM discs are widely used to distribute large software applications that exceed the capacity of a CD-ROM disc. , and other digital delivery methods, including the Internet. In addition to the Marketing and Development Agreement, Macrovision is purchasing a 19.8% equity position in C-Dilla. Macrovision's entry into this market coincides with the introduction of inexpensive CD-recording products to the Personal Computer marketplace. These products put software and games publishing companies at greater risk to unauthorized copying than ever before. A CD-Recorder retailing for less than $300 is capable of copying any CD-ROM onto a blank CD-R (CD-Recordable) A writable CD technology using a type of compact disc that can be recorded, but not erased (CD-Rs are "write once" discs). CD-R discs are used to master CD-ROMs, to back up data and to make copies of data for distribution. disc that costs less than $2.00. In addition to the copying threat already posed by professional pirates and software hackers, inexpensive CD-recording technology will allow a PC owner with just basic computer skills to make replicas of any CD-ROM-based application for the price of a blank disc. Macrovision is partnering with C-Dilla to complete the development of a suite of software copy protection products based on C-Dilla's proprietary technologies. C-Dilla is in the process of final beta trials with selected CD-ROM publishers and expects to complete those trials and introduce a product to market within 6 months. "This agreement allows Macrovision to leverage over a decade of experience in developing and marketing copy protection solutions to the home video industry. The need for a good copy protection solution for the CD-ROM software market presents a near-term market opportunity we are well-positioned to address, and represents a logical expansion of our business domain," stated John Ryan John Ryan can refer to:
"Infotech estimates that the current worldwide population of 167 million CD-ROM drives will grow to a combined DVD-ROM and CD-ROM installed base of 378 million by the year 2000. In the past Macrovision has been successful at developing and introducing copy protection technologies to protect videos distributed on cassettes, DVDs, and pay-per-view networks. By teaming with C-Dilla on both the marketing and technical side, we will strive to repeat that success in the multimedia software market." Peter Newman, C-Dilla's CEO, commented that, "previous software copy protection systems failed because they were either inconvenient for the user or were easily circumvented, or both. C-Dilla's products employ proprietary authentication and encryption technology that provide a high level of security against illicit replication but most importantly do not interfere with the end user's enjoyment of the product. In order to ensure that our technology is compatible with CD-ROM manufacturing standards, we have worked with two industry leaders, Doug Carson Associates (DCA (1) (Document Content Architecture) IBM file formats for text documents. DCA/RFT (Revisable-Form Text) is the primary format and can be edited. DCA/FFT (Final-Form Text) has been formatted for a particular output device and cannot be changed. ) and Philips Electronics. "We knew that our customers would be concerned about compatibility with Red Book and Yellow Book CD-ROM Yellow Book CD-ROM - A CD-ROM format which is ISO 9660 compliant and uses mode 1 addressing. Discs of this type can be played on most drives and would be appropriate for most multimedia applications which have been developed for personal computers. standards, so we obtained Philips' approval for the design principles for producing CD-ROMs. DCA, the leading supplier of control software for the Laser Beam Recorders used to manufacture CD-ROMs, has made available C-Dilla's copy protection software in its latest mastering software." Infotech estimates that consumer software publishers sold 400 million units of CD-ROM software titles in the U.S. alone in 1996. According to Infotech, the proliferation of sub-$1,000 multimedia PC's is expected to increase the annual sales volume of CD-ROM titles in the U.S. to 1.2 billion units by the year 2000. UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities estimates that the PC entertainment category is growing at an annual rate of 25% worldwide. This growth is driven by the increasing multimedia capabilities of desktop computers provided by 3-D graphics, video, surround sound, and other technologies which make PC games more entertaining and realistic. As part of the Marketing and Development Agreement, Macrovision and C-Dilla plan to develop a disc authentication technology for use in future DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. video players. When combined with digital watermarking, disc authentication can provide a more complete copy protection solution for the next generation of standalone DVD players. Macrovision recently announced an agreement with Digimarc of Portland, Ore. to develop digital video watermarking technology for use in DVD and other digital video platforms. About C-Dilla C-Dilla, a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. founded in 1991, has 34 employees and is a recognized leader in rights management software for high value-added information and software publishers. The company's current line of security and rights management products are marketed worldwide to over 150 software and data publishers such as Autodesk, Lotus Development UK, Pitney Bowes, British Telecom, and the Financial Times. C-Dilla's rights management software includes multi-track unlocking capability, "try before you buy," and metered usage capability. C-Dilla also markets secure products for the Internet and the Electronic Software Distribution market. C-Dilla plans to open a San Francisco Bay area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay sales office this year to distribute its current products into the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market. About Macrovision Macrovision Corporation is the leader in copy protection technologies used by Hollywood studios and other rights owners worldwide to deter unauthorized VCR VCR: see videocassette recorder. VCR in full videocassette recorder Electromechanical device that records, stores on a videotape cassette, and plays back on a TV set recorded images and sound. copying of prerecorded pre·re·cord tr.v. pre·re·cord·ed, pre·re·cord·ing, pre·re·cords To record (a television program, for example) at an earlier time for later presentation or use. Adj. 1. videocassettes, DVDs (digital versatile discs) and digital cable/satellite PPV Positive predictive value (PPV) The probability that a person with a positive test result has, or will get, the disease. Mentioned in: Genetic Testing PPV porcine parvovirus. PPV Positive-pressure ventilation programs. Macrovision's technology has been applied to over 2 billion cassettes since its market introduction in 1985. The company offers products and services for the home video, pay-per-view, cable, satellite, theatrical, and corporate communications market. Macrovision is based in Sunnyvale, Calif. with subsidiaries in London and Tokyo. All statements contained herein, as well as oral statements that may be made by Macrovision or by officers, directors or employees of Macrovision acting on Macrovision's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of Macrovision to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Risks associated with Macrovision's Marketing and Development Agreement with and investment in C-Dilla, include, but are not limited to: the companies may be unsuccessful, or incur significant delays, in their attempts to develop technology that inhibits copying of CD-ROM, DVD and/or other software materials; any such technology that is developed may not gain market acceptance or sufficient sales at a sufficient price to be commercially viable; no patents have issued to either of the companies for any such technology, and the companies' claims to intellectual property rights to such technologies may be challenged, invalidated or circumvented; C-Dilla has worked in the past with other companies that may have or claim certain rights in or to such technologies that could restrict Macrovision's rights; any technologies that are developed can be expected to encounter competition from technologies that are now, or in the future may be, marketed or developed by others; the emergence of new industry standards for computers or computer software or the introduction of new technologies or products could render any technology that the companies develop obsolete; Macrovision's equity investment in C-Dilla may decline in value or become worthless. Additional risks and uncertainties are outlined in Macrovision's Registration statement on Form SB2 and in its reports on Form 10QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound . Macrovision is not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. -0- Note to Editors: Additional background information on Macrovision Corporation through our Web Site at www.macrovision.com. CONTACT: Macrovision Corporation Brian Dunn, 408/743-8600 www.macrovision.com or C-Dilla Ltd. Gemma Pither, +44 (0) 118 969 1111 www.c-dilla.com |
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