First SDMI Licensees Announced

After months of frustration, the audio industry and consumers of digitally delivered music content may be on the verge of a breakthrough as the first licensees of the Verance digital watermarking technology have been announced. This is crucial as it is the foundation for securing digital audio, whether delivered on a physical format such as DVD-Audio or over the Internet. It is also what the major labels have been waiting for. They need wait no longer, as today marked the day when the Verance Corporation announced a broad multi-industry group of companies licensing the Verance audio watermarking system under Phase 1 of the Secure Digital Music Initiative (SDMI). The initial group of licensees ranges from consumer electronics giants to music labels and Internet music delivery companies. These firms will employ the Verance system as a key component in recorded content, recording and playback devices and supporting information platforms as the foundation for the legitimate distribution of SDMI compliant digital music. All of the five major labels (BMG, EMI, Sony Music, Universal Music, and the Warner Music group - as well as Sony Music Entertainment in Japan) have signed on. In the consumer electronics sector, licensees include Matsushita (Panasonic), Sony, TDK and Toshiba. Other licensees are NTT East, Rioport.com, Silicon Contents, ST Microelectronics and Telian A/V. ""We are extremely pleased with the growing deployment of our SDMI Phase 1 audio watermarking system by so many industry leaders,"" said David E. Leibowitz, Chairman of Verance. ""With the active participation of all five major record companies and other industry leaders, consumers can now look forward to greater access to legitimate high quality digital music.""