[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

[dvd-discuss] reversal press release - sunncomm

HERE IT IS!!! :)

OMG - sunncomm pres uses the phrase: chilling effect! Do they really get
it? or is it just my wishful thinking? Did this really happen? or are they
pulling our collective leg!

Version 	10/10/2003, 11:50

SunnComm Technologies Reverses Decision to Bring Legal Action against
Princeton Researcher
According to SunnComm CEO, legal action would not repair the damage done
and could potentially cause a "chilling effect" on the type of research
that faculty, staff, and students of institutions of higher learning elect
to pursue in the future.

PHOENIX, Ariz., October 10, 2003  SunnComm Technologies, Inc. (OTC:STEH),
a leader in digital content security and enhancement for optical media,
announced today it will not seek legal remedies against Princeton
researcher Alex Halderman. SunnComm believes Halderman wrote an inaccurate
critical report of its recently released MediaMax CD-3 Copy Management
technology (V1). Mr. Halderman included in his research report several
methods of circumventing the MediaMax music file security used to slow
down the casual copying of unprotected files. Because Mr. Halderman felt
the file security was too easily bypassed, he deduced the product failed
in its primary marketing mission. In actuality, MediaMax, which has been
licensed to BMG Music, one of the worlds largest record companies, as well
as other labels, performed exactly according to its Version 1 design
specifications. SunnComm felt that Mr. Halderman missed the fundamental
goal of MediaMax  to provide CD buyers with a licensed and legal method of
making and sharing authorized copies of the music they purchase.

Prior to the development and release of MediaMax this year, the only way
to obtain a digital copy of the music on a CD was to rip the music from
the disc to the hard drive of a personal computer which produced a copy in
an unsecured format. The resulting music files could then be copied ad
infinitum, making unauthorized discs, and moving the content to illegal
P2P file sharing networks. These issues have been the fundamental cause of
the piracy issue for the music industry.

With MediaMax CD-3 Technology, users can opt to make legal and licensed
copies of the music and have this content stored in a secure format. This
secure format allows the consumer to listen to the music, copy the files
to the computer, move the content to a compatible player device, share a
controlled copy with a friend by e-mail and even make a limited number of
extra CDs for personal use. These features and the flexible functionality
were designed to offer the consumer a reasonable alternative to violating
the copyrights of their favorite artists and avail themselves of the
additional bonus features included as a component of the product.

SunnComm president, Bill Whitmore stated, A technology has not yet been
invented that will keep all those individuals from appropriating the
unprotected music without limitations if they intend on taking it that
way. MediaMax creates an opt-in speed bump of security which encourages
licensed music copying and sharing without deteriorating the music
experience. With each subsequent version of MediaMax, the speed bump will
have improvements in security, as well as consumer friendly functionality.

Whitmore concluded, I feel that this is a very important distinction which
was overlooked in Mr. Haldermans report when it was disseminated with
Princeton Universitys consent. Had Mr. Halderman evaluated the product as
a copy management solution that was purposely designed to deliver a
licensed and legal structure for limited copying and sharing, he would
have most likely yielded a different result. Instead of being rated as
flawed his final conclusion may have found that it performed as it was
intended to perform. This insight would have prevented the negative impact
on the SunnComm product, reputation and valuation.

Peter Jacobs, SunnComm CEO said, MediaMax performs EXACTLY as "advertised"
to the companies who purchased it. The ultimate proof will be in the
results we obtain from the marketplace - and not in the courtroom. I
believe that researchers should have consequences for inaccurate research
they perform and publish that result in damage to others. Because SunnComm
is, itself, a company which relies on research and development for its
survival, we feel that bringing legal action for damages against
researchers in a higher learning environment may contribute to a chilling
effect on the type of research that faculty, staff, and students elect to
pursue. Therefore, we4ve decided to move along and not pursue legal
remedies in deference to "the bigger picture." SunnComm directors and
employees feel that research plays an incredibly vital role at SunnComm
and in our society, and we need to do everything we can to nurture it.

Jacobs concluded, We realize now that Mr. Halderman had mistakenly
expected to be researching an extremely hack resistant copy protection
product when he evaluated MediaMax -Version1. SunnComms security features,
though scheduled to be more robust with each MediaMax upgrade, have always
placed second in importance to achieving SunnComms goal of near-universal
playability and the delivery of an exceptional consumer experience. The
marching orders we received from the music industry was to build an
integrated system for the vast majority of consumers who, when given the
option, would elect to use a licensed and legal method for accessing their
CD music because, in doing so, they would be honoring the wishes of their
favorite artists. For the first time in America, MediaMax gives CD buyers
a structure to make that choice.

MediaMax CD-3 is a collection of technologies that provides copy
management for CDs and DVDs, while simultaneously enhancing and expanding
the consumer4s experience. MediaMax CD-3 is tightly integrated with
Microsoft4s (NASDAQ:MSFT) Windows Media Platform and the Digital Rights
Management capabilities associated with the latest Windows Media
Platforms. SunnComm licenses and uses Windows Media Audio DRM capabilities
from Microsoft Corporation as the security feature for music files which
end up residing on the consumers computer.

SunnComm Technologies Inc. became the first company to commercially
release a content-protected audio CD utilizing an early version of the
Windows Media Data Session Toolkit. SunnComms copy-management technology
was commercially released by Music City records in 2001, which became
Americas first copy-protected audio CD. It has become a leader in digital
content enhancement and security technology for optical media with its
MediaMax CD-3 suite of products.

SunnComm4s MediaMax CD3 Suite of Digital Content Enhancement technologies
are built using Microsoft (NASDAQ:MSFT) Windows Media 9 Series, but
operates on both Apple (NASDAQ:AAPL) and Windows-based systems. For more
detailed information about the company, its vision or philosophy,
personnel, partners, and customers, please visit the company4s Web site at
http://www.sunncomm.com, or call the company directly at (602) 267-7500,
and ask for shareholder relations.

MediaMax Digital Content Cloaking Technology, DC2, PromoPlay and SunnComm
are registered and/or trademarks of SunnComm Technologies Inc. in the
United States and/or other countries. The names of actual companies and
products mentioned herein may be the trademarks of their respective


Statements contained in this release, which are not historical facts, may
be considered "forward-looking statements" under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on
current expectations and the current economic environment.

We caution the reader that such forward-looking statements are not
guarantees of future performance. Unknown risk, uncertainties as well as
other uncontrollable or unknown factors could cause actual results to
materially differ from the results, performance or expectations expressed
or implied by such forward-looking statements.

On Fri, 10 Oct 2003, Tim Neu wrote:

> On Fri, 10 Oct 2003 09:02:01 -0400, Dean Sanchez wrote
> > This article removes any doubt that the DMCA is irreparably flawed
> > and the IP industry has lost all touch with reality.  I am left
> > speechless at the audacity of SunnComm's claim (follow second link
> > to its site).
> >
> > http://www.theinquirer.net/?article=12034
> >
> > http://www.sunncomm.com/press/pressrelease.asp?prid=200310091000
> Hmm... _If_ this is real, then what you say would appear to be true.
> Somehow I doubt the copyright folks would play into our hands so easily with
> such a clear-cut case.
> I don't suppose there is a way to verify this unless / until charges are filed...
> =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
> ______         _ __                          Military Intelligence
>   /           ' )  )        -KC0LQL-         Honest Politician
>  / o ______    /  / _  . .                   Intellectual Property
> / <_/ / / <   /  (_</_(_/_  -- tneu@visi.com / http://www.visi.com/~tneu