PHOENIX, Sept. 8, 2003 (PRIMEZONE) -- SunnComm Technologies, Inc. (Pink Sheets:STEH) CEO, Peter H. Jacobs says, "It's no longer necessary for music lovers to violate artist, publisher, and record company copyrights in order make additional personal copies of music tracks on the CDs they buy. Records labels choosing to utilize SunnComm's MediaMax CD3 technology can now set the number of times a consumer may copy a particular song on a purchased CD. Now, music buyers can send selected tracks of their favorite music to friends along with licensing which permits those friends to play the music for a limited period of time or a specified number of plays."
SunnComm's innovative new method permits music copying on a limited and licensed basis while removing the stigma brought about by unauthorized copying and file sharing. At the same time, MediaMax creates a barrier which discourages the illegal copying or "ripping" of music.
"The time is now to employ music copy-management solutions on compact discs," says Jacobs. "SunnComm is more than just a technology company seeking marketing opportunities. Our people live and breathe the dilemma facing artists and the music industry. Much of SunnComm's staff, many of whom are musicians and artists by avocation, feel very strongly that a civilized society needs to honor the copyrights of all creative work and so, we have put our development team into high gear in the hope of creating viable solutions. America's forefathers thought enough of patent and copyright protection to make it the only right specifically spelled out in our U.S. Constitution. Just like any other invention or creative work, it is up to the copyright holder or his designee to determine the use and application of his own protected work. Just as this protection is enforced in America for literature, art, invention, and software, so, too, must we strive to protect the copyrights of those who write, perform or publish music. Courts have found that the so-called "fair use" of copyrighted materials can include a reader's ability to copy small excerpts of published material without first obtaining an author's permission and content users may make archival copies of protected material for personal use. However, fair use does not mean that a content user has a right to make unlimited copies of protected material for friends or allow access to the music through international file sharing services such as KaZaA or Morpheus where potentially millions of participants have the opportunity to re-copy it."
Chief Operating Officer William H. Whitmore, Jr. adds, "When record companies choose to utilize SunnComm's MediaMax, they are embedding a structure on the music CD that allows consumers to make personal copies of their favorite music or even send selected music tracks to friends. MediaMax empowers the user by issuing them a conditional license so they may duplicate or share the music, and, at the same time, the technology helps to deter illicit file sharing and copying by making it much harder for consumers to make unprotected duplicates of the music."
Continues Whitmore, "MediaMax CD3 is not a "holy grail" solution expected to end illicit file duplication and unlicensed sharing. However, what we expect it will do is create an effective structure on the CD itself that encourages legal and licensed copying activities. A determined "digital shoplifter," like any thief, can always find ways to steal. However, when record companies employ MediaMax, they create a legal way for music lovers to copy and share the music they purchase."
"Just because the digital music that exists on people's home personal computers can be economically copied and shared again and again does not mean that it's morally right or, for that matter, legal, for a person to make unlimited copies. We believe it's a clear misuse of the artists' work - plain and simple. The same people that use file sharing networks on the Internet to acquire "free" music wouldn't dream of going into a record store and stealing that same CD; however, many people don't give anonymous theft of music via file-sharing on the Internet a second thought. Cyberspace is chock-full of content - some of it free, some of it for a price. Those among us who use file sharing networks to acquire copyrighted work need to spend a bit more time distinguishing the free content from the premium content. Most licensed music on the Internet is sold for a fee. The fact that music can be "unlocked" and copied ad infinitum by technology does not justify stealing it."
MediaMax CD-3 is a collection of technologies that provides copy management for CDs and later this year, DVDs, while simultaneously enhancing and expanding the consumer's experience. MediaMax CD-3 is tightly integrated with Microsoft's (Nasdaq:MSFT) Windows Media Platform and the Digital Rights Management capabilities associated with the latest Windows Media Platforms. The company licenses and uses Windows Media Audio DRM capabilities from Microsoft as the security feature for these files. MediaMax CD-3 is compatible in both Windows-based computers as well as Apple (Nasdaq:APPL) computers. MediaMax introduces music buyers to special enhancements on the discs, including artist information, song lyrics, bonus tracks, music video clips, special offers, prizes and other valuable content. All of this added value is accessible via a computer from a data session mastered on the disc and are not available to those illegally downloading music through file-sharing services.
When a consumer puts a SunnComm MediaMax CD in a computer's CD-ROM drive, the computer can read and play the protected digital audio files through SunnComm's proprietary, multimedia user interface. These digital audio files can be legally copied from the CD and then enjoyed on the user's personal computer or shared with friends for a limited period of time using SunnComm's PromoPlay(tm) technology. However, those same licensed music tracks cannot be sent through standard email or made available to file-sharing services such as KaZaA or Morpheus.
ABOUT SUNNCOMM
SunnComm Technologies Inc. (Pink Sheets:STEH) became the first company to commercially release a content-protected audio CD utilizing its technology and an early version of the Windows Media Data Session Toolkit. It is a leader in digital content enhancement and security technology for optical media with its MediaMax CD-3 suite of products. SunnComm's copy-management technology was commercially released by Music City records in 2001 and became America's first copy-protected audio CD.
SunnComm's MediaMax CD3 Suite of Digital Content Enhancement technologies, introduced in 2002, are built using Microsoft (Nasdaq:MSFT) Windows Media 9 Series but operates on both Apple (Nasdaq:AAPL) and Windows-based systems. For more information, please visit the company's Web site at: http://www.sunncomm.com.
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 owners.
For more detailed information about the company, its vision or philosophy, personnel, partners, and customers, please visit the company's Web site at http://www.sunncomm.com.
NOTES ABOUT FORWARD-LOOKING STATEMENTS
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.