DALLAS, May 26, 2004 (PRIMEZONE) -- Immediatek Inc. (OTCBB:ITEK), inventor of NetBurn Secure(TM) digital delivery and copy control solutions, and parent company of DiscLive Inc., says that the patent acquired by Clear Channel does not give it exclusive rights to the business of creating recordings of live performances. Furthermore, after a detailed analysis, the company has concluded that the patent is not relevant to the DiscLive implementation.
The concept of recording and rapidly duplicating a live performance, such as a seminar or concert, and immediately distributing those recordings to the attendees, has been known since at least 1994. For example, U.S. Patent No. 5,349,477, issued on September 20, 1994, discusses a system that includes equipment capable of recording a seminar or concert and then rapidly duplicating "disks" and "audio cassettes" for distribution immediately after the event has ended.
Further, the DiscLive implementation utilizes standard off-the-shelf Steinberg Wavelab software to manage the recording and editing of the concert. This software does not permit the file to be "accessible as it is being formed," as recited in the patent Clear Channel has recently acquired.
Zach Bair, CEO and Chairman of Immediatek, said, "Our attorneys have provided Clear Channel's attorneys with this information and more to detail why their patent is not relevant to the DiscLive system and requested that they provide us with specific details if they disagree with our attorneys' analysis or conclusions. In fact, we are so confident of our position that we have invited Clear Channel to do an inspection of our implementation to verify the information we have provided them.
"Although discussions are ongoing, neither Clear Channel nor their lawyers have provided us with any such details as to why their patent is relevant to the DiscLive system, nor have they accepted our invitation to inspect our implementation."
Immediatek intends to continue rolling out the DiscLive product offering, along with its other technologies such as NetBurn Secure and the NetBurn Portal System, as well as the soon-to-be-announced availability of NetBurns within two hours after a live performance.
DiscLive is the pioneer in the quickly growing market of live discs available immediately after the concert, having sold more live discs at concert venues than its competitors combined, and completing tours from Vermont to California and now also in Canada.
The company's mobile recording and production facility can produce 800 high quality CDs in less than 20 minutes. The New York based company is headed by Rich Isaacson, CEO, and Sami Valkonen, President, each of whom have extensive track records in the music industry. A May 2 headline in The New York Times dubbed the DiscLive offer of legal high quality CDs available immediately after the concert "Rock's Best New Souvenir."
Immediatek, parent company of DiscLive, is the developer of NetBurn Secure(TM) (www.netburncd.com), the only "single-click CD download and burn" software product on the market that helps record labels, artists and content providers to curb Internet piracy and protect their revenues by providing copy control even after digital music has been burned to disc. NetBurn Secure(TM) also employs technology by third parties such as Microsoft (NASDAQ:MSFT). Immediatek's website is www.immediatek.com.
Safe Harbor Statement:
This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors, including but not limited to, changes in the retail market place, changes in underwriting results affected by economic conditions and other factors described from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10KSB for the year ended December 31, 2002. All forward-looking statements made in this press release are based on information presently available to management of the Company. The Company assumes no obligation to update any forward-looking statements.
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