Macrovision Signs CD-ROM Copy Protection Agreement with GT Interactive Software Corporation.SUNNYVALE, Calif.--(ENTERTAINMENT WIRE)--Oct. 20, 1999-- SafeDisc Technology to be Applied to GT Interactive's Interactive Game 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). Titles Macrovision Corporation (Nasdaq:MVSN MVSN Milizia Volontaria per la Sicurezza Nazionale (Italy) ) announced today that GT Interactive Software Corporation (Nasdaq:GTIS GTIS Government Telecommunications and Informatics Services (Canada) GTIS Global Trade Information Services GTIS GOES Tap Imaging System GTIS Government Technical Information Services (Canada) ) has signed an agreement to use Macrovision's SafeDisc(TM) PC CD-ROM copy protection solution. Under the agreement, GT Interactive will use SafeDisc on a wide variety of interactive game software distributed worldwide. "Copyright protection is an important issue for GT Interactive's worldwide publishing operations," said David M. Anderson, Vice President of Finance & Business Affairs. "Macrovision's SafeDisc technology offers us another line of defense in protecting our intellectual properties." Piracy of packaged entertainment software last year was estimated by the Interactive Digital Software Association (IDSA IDSA Infectious Diseases Society of America IDSA Industrial Designers Society of America IDSA Interactive Digital Software Association IDSA Institute for Defense Studies and Analyses (India) IDSA International Dark Sky Association ) to be over US$3.2 billion worldwide for the software gaming industry alone. A separate study sponsored by Macrovision, which was conducted in early 1999 by San Mateo San Mateo (săn mətā`ō), city (1990 pop. 85,486), San Mateo co., W Calif., on San Francisco Bay; inc. 1894. It is a commercial and retail center with some high-technology manufacturing. San Mateo, Spanish for St. , CA-based Merrill Research & Associates, estimated the value of unauthorized copies of PC CD-ROM games and educational software in consumer households at almost $1 billion. Based on survey responses, consumers have added 30 million copied CD-ROM games in their inventory, with over half of these copies having displaced interactive software purchases. A recent poll conducted by the Business Software Alliance (BSA 1. BSA - Business Software Alliance. 2. BSA - Bidouilleurs Sans Argent. ) and Software & Information Industry Association (SIIA (Software & Information Industry Association, Washington, DC, www.siia.net) A trade organization devoted to the health and welfare of the software and digital content industry by providing support in government relations, business development, education and intellectual property ) estimated business application software piracy The illegal copying of software for distribution within the organization, or to friends, clubs and other groups, or for duplication and resale. The software industry loses billions of dollars each year to piracy, and although it may seem innocent enough to install an application on a revenue losses at $2.9 billion in the U.S. and $11 billion globally. "GT Interactive has taken an important step to safeguard its products from illegal copying and piracy. By using SafeDisc, GT Interactive will protect its substantial investment in their studios and alliances," said Brian Dunn, Senior Vice President of Computer Software Copy Protection at Macrovision Corporation. The SafeDisc technology, currently licensed to over 70 replicators worldwide, is a software-based solution that does not require any changes to standard PC or CD-ROM hardware. It is comprised of both an authenticating digital signature embedded on the disc, as well as a multi-layered encrypted wrapper that secures the CD-ROM content. The digital signature, which cannot be copied by CD recorders, is added to each original disc during the mastering/replication process. When a user inserts an original disc in a CD-ROM drive, the authentication software reads the digital signature, allowing the program to be decrypted and run normally. If an unauthorized copy is loaded, the authentication software will not be able to find the digital signature, and the copy will not run. The anti-copy encryption technology is licensed directly to interactive software publishers, and to mastering and replication facilities that add the patented digital signature during the manufacturing process. SafeDisc, developed by Macrovision's subsidiary C-Dilla UK Ltd., represents Macrovision's first copy protection product for the interactive software market. Macrovision is best known for its videocassette A removable magnetic tape module for storing video data. The cassette contains supply and takeup reel (hubs) in the same housing. See VCR. and DVD copy protection See CSS and DeCSS. technology, which has been applied to over 2.5 billion videocassettes over the past decade and over 85 million 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. discs since 1997. C-Dilla, founded in 1991 and acquired by Macrovision in June 1999, is best known for its rights management software for high value-added information and software publishers. SafeDisc is licensed to most of the leading interactive software companies including Electronic Arts, Microsoft, Eidos, Hasbro Interactive and Mattel. About GT Interactive Headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , GT Interactive Software Corp. is a leading global developer, publisher and distributor of interactive consumer software. The company maintains four divisions: Children's Publishing, Leisure Publishing, Frontline Publishing and Distribution. The company has publishing operations throughout the world with office in the US, Canada, UK, Germany, France, Holland and Australia. GT Interactive also has seven internal development studios; Humongous Entertainment, Cavedog Entertainment, SingleTrac, WizardWorks, Oddworld, Legend Entertainment and Reflections. GT Interactive's e-commerce system provides secure online transactions through each of the studio's Web sites and www.gtstore.com. GT Interactive can be found on the Internet at www.gtinteractive.com. About Macrovision Macrovision Corporation develops and markets technologies to prevent the illicit duplication, reception or use of video and audio programs and computer software. The Company provides its products and services primarily to the home video, pay-per-view, cable, satellite, video security, consumer multimedia and business software markets. Macrovision has its headquarters in Sunnyvale, Calif. with subsidiaries in London and Tokyo. All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company'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 the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in Macrovision's Annual Report on Form 10-KSB for 1998 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1999, both as filed with the Securities and Exchange Commission. These factors may not constitute all factors that could cause actual results to differ materially from those discussed in any forward-looking statement. The Company 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. Note to Editors: Additional background information on Macrovision Corporation can be obtained from our Web Site at www.macrovision.com. |
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