[PEN-L:33595] Re: Re: a Perelman rant ref # 33593

["Ian Murray" <seamus2001@xxxxxxxxx>]

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From: "Doyle Saylor" <djsaylor@xxxxxxxxxxxxxx>

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Former KGB agents go to war against music pirates

Richard Wray
Monday January 6, 2003
The Guardian

A squad of former KGB operatives will emerge this month at the forefront
of the battle against music piracy with the launch of a new technology
which "watermarks"digital content.

Internet experts reckon the music industry is losing far more money
through internet piracy than it is making from its own online
distribution channels.

Although online music is seen as a big factor in the attractiveness of
broadband services to consumers, music companies are wary of putting a
significant proportion of their catalogues online because of the
pirates.

This month, music distributor Apex Entertainment Group will introduce
watermarking technology developed by former Russian spies in St
Petersburg, in the hope of attracting more music companies on to the
web.

"At the moment the music companies are protecting their copyright by
saying to people 'you cannot use it' or allowing people to access only a
small portion of their catalogue," said Apex boss Harry Maloney. "What
we are saying is 'you can access anything because it can be
watermarked'."

The former KGB agents work for Mazur Media, which North London-based
Apex bought last year for several million pounds.

During the cold war the 40-strong St Petersburg team developed sensitive
snooping equipment, encryption technology and tracking systems for tanks
and MiG aircraft.

Following the collapse of communism the former spies started working
with the music industry, digitally remastering old recordings using
technology developed to spy on the west.

Having amassed a considerable catalogue of new digital recordings, the
encryption experts developed a unique watermarking system to protect
their new asset.

This watermark is woven into the digital data so, even if music is
downloaded from the internet and then "burnt" on to a new CD, its
origins can be traced.

Apex plans to introduce the system at the Midem music industry trade
show in Cannes and is in talks with a number of telecoms companies which
can provide the extensive web-hosting infrastructure needed for a
full-scale offering of the service to the music industry.