17-Nov-99

Sony Gains Support From Leading IT Companies To Realize Interoperable And Secure Electronic Music Distribution

Sony Corporation Monday announced that it has reached agreements with InterTrust Technologies Corporation, Liquid Audio Inc. (Nasdaq: LQID), Preview Systems Inc., RealNetworks Inc., and Reciprocal Inc. to make Sony's ""OpenMG"" copyright protection technology including Digital Rights Management (DRM) interoperable with electronic music distribution technologies developed by the respective companies. This will enable OpenMG compliant personal computers and Sony's portable devices such as the ""Memory Stick Walkman (NW-MS7)"" and ""VAIO Music Clip (MC-P10)"" to receive content downloaded securely over the Internet, using the above companies' electronic music distribution technologies. Earlier this year, IBM and Sony announced that they had reached a similar plan to realize the interoperabilitiy between OpenMG and IBM's Electronic Music Management System (EMMS), a comprehensive e-business solution for the secure sale and downloading of music over the Internet. Monday's announcement demonstrates the broad support Sony is gaining for OpenMG and portable devices from innovative companies active in electronic music distribution solutions. Sony's OpenMG is designed to support multiple download platform and audio devices of electronic music distribution, which gives music companies various options for secure, SDMI-compliant solutions, as a result of Sony's above-mentioned agreements. Likewise, customers will be able to use Sony's portable devices for an increasing number of major music titles downloaded securely over the internet, as OpenMG commands broader support from the industry. Consumer electronics manufacturers can tap into the potential portable device market by licensing such technologies as OpenMG, MagicGate Memory Stick and ATRAC3. ""Sony aims to create an interoperable and secure electronic music distribution environment with OpenMG. We have already agreed with leading IT companies to make each other's technology interoperable"" said Kunitake Ando, President & COO, Personal IT Network Company, Sony Corporation. ""I believe the majority of music files on the Internet will be enjoyed on Sony's portable devices in the near future. By realizing an interoperable and secure environment, I expect everyone will reap benefits - music companies, providers of electronics music distribution technologies, portable audio player manufacturers and consumers alike. Sony is prepared to license OpenMG and other relevant technologies to interested parties"" he added. ""We are pleased that Sony has secured the support of IT companies for OpenMG, an interoperable, SDMI compatible solution for the secure distribution of music over the Internet. We believe this solution will significantly contribute to the growth of the secure electronic content delivery market in the future,"" said Al Smith, Senior Vice President, Sony Music Entertainment.