Musicrypt Inc. secure digital distribution system gains more users

Musicrypt Inc. has announced Warner Music Canada and BMG Canada as the latest customers for its digital media distribution system (DMDS), a web-based digital distribution network that allows secure delivery of broadcast quality music tracks and promotional materials directly from the distributor to the radio stations. DMDS eliminates the need for physical delivery of music and other digital content, and makes it possible for radio station operators to quickly and easily edit new releases from home, office or while traveling. Distributed files are protected from the unauthorized copying by biometrics - a keystroke dynamics technology binding the user to their user name and password through a unique keystroke speed. The system uses high value encryption with a million-bit encryption algorithm, and watermarking, a process to insert identifying data in a music track that can’t be removed without damaging the track. "We’re the only system that provides the three levels of security for secure access," says John Heaven, president and CEO of the Toronto-based Musicrypt. "Keystroke dynamics biometrics technology was originally developed by the Stanford Research Institute, and it’s based on rhythm and movement of an individual’s key typing, which is as unique as fingerprint.The system we employ is totally portable, and it travels with the individual, because the typing rhythm goes with them, and there’s no hardware required," says Heaven. "Combined with the encryption and watermarking, it provides both preventive protection over the valuable new music property, as well as a detective protection. If the track was sent by the recipients to an illicit file sharing service, the watermark identifies that individual." For now, the DMDS delivers music files and promo material, but Heaven says that Musicrypt is intending to add a video option for the technology, which will happen "in probably two to three quarters." Further potential for DMDS lies in distributing music to individual consumers over the Internet. "We’re primarily focused on business-to-business (B2B) service, and at this moment we’re not providing service for the individual customers. But, it is a potential for us," Heaven says. "Right now, the consumer market is a little confused. The major problem for the consumers is the chaos created by the illicit file-sharing services, so the revenue and the cost models are not determinable at the moment. It is difficult for the music distributors to determine how much they should charge and how much it will cost them while there is still a great deal of file-sharing going on." Prior to employing Musicrypt DMDS, Warner Music Canada conducted an extensive pilot program, through which it distributed latest releases by international music stars such as Red Hot Chilly Peppers, Seal, Alanis Morrisette, Eric Clapton, Great Big Sea and Michael Buble. Among other major label users of the DMDS for their digital delivery service for music releases to radio and internally are Universal Music, Rogers Media Broadcasting, Canada’s largest privately owned multimedia company Standard Radio, French music company Next Music, EMI Music Canada and BMG Canada. Musicrypt also provides B2B access to the Canadian independent record companies through the Canadian Independent Record Producers Association.

Musicrypt Inc. secure digital distribution system gains more users

Broadcast | June 9, 2004

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