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Anti-Piracy

June 19, 2006
Volume 13, Issue 10


P2P MEDIA SUMMIT Starts Thursday

Please click here to register online for the P2P MEDIA SUMMIT, the DCIA’s first annual Conference & Exposition, taking place Thursday and Friday in McLean, VA; or call 888-864-3242 to register by phone.

The P2P MEDIA SUMMIT is a must-attend event for everyone interested in commercial development of the peer-to-peer (P2P) file-sharing marketplace, including software developers and distributors, content providers, service-and-support companies, and all other concerned parties.

Registrants for the full Conference & Exposition are also entitled to admission to the Digital Media Conference at no additional charge.

Kontiki CEO to Address Summit

Kontiki CEO Todd Johnson has been added as a featured speaker at the P2P MEDIA SUMMIT. Todd is a 22-year Silicon Valley veteran. He has extensive experience leading companies ranging from start-ups to multi-million dollar technology companies, overseeing the direction of business development, strategic alliances, sales, and infrastructure operations. Todd most recently served as President of Jamcracker, which provides software and services that enable companies to manage their on-demand delivery and software-as-a-service solutions.

Kontiki provides competitive advantage to its customers by increasing the value of their existing network and computing infrastructure for corporate video communications. Kontiki’s patent-pending Grid Delivery Technology taps the unused resources of networked PCs and servers, allowing enterprises to deliver high quality corporate video and all digital media content faster and at a fraction of the cost of alternative solutions.

Additionally, the grid allows every user, regardless of location or connection speed, to receive content in the background without any degradation of system performance. Kontiki fundamentally changes the economics of large file delivery, while dramatically improving video communications effectiveness and reach.

Welcome New Member Perenety

Please warmly welcome Perenety to the Operations Group. We look forward to providing valuable services to this newest DCIA Member and supporting its contributions to commercial development of the distributed computing industry.

Perenety is a new P2P startup based in Silicon Valley and founded by three Stanford graduates: Xavier Casanova, Guillaume Thonier, and Arnaud Tellier. Perenety’s product is “shooter,” a free and simple software application that friends may use to privately exchange photos and videos.

Shooter’s underlying technology is the powerful Perenety File System (PFS), a new P2P file system specifically designed for securely storing and delivering private files.

The PFS is different from previous P2P architectures, such as BitTorrent, because it delivers files with a consistent and high level of performance under all scenarios: one-to-one, one-to-some, one-to-the world. In addition, all files stay encrypted and are un-searchable, which guarantees an unmatched level of privacy.

Shooter is currently in the final stages of field testing and will be open to the public in the summer of 2006. For more information, please visit: www.shooter7.com. Plan now to meet Perenety and other industry-leading DCIA Members this week at our first-ever Conference & Exposition.

Report from CEO Marty Lafferty

Photo of CEO Marty LaffertyWe look forward to seeing you later this week at the P2P MEDIA SUMMIT. This historic event, our first annual DCIA Conference & Exposition, is taking place in McLean, VA, a year after the US Supreme Court’s landmark MGM v. Grokster ruling.

The Conference is being held on Thursday June 22nd and the Exposition on Friday June 23rd in conjunction with the Digital Media Conference (DMC).

Your registration for the full Conference & Exposition includes admission to the DMC and represents a $250 savings over registering for the events individually. To register now, please click here.

The 6/22 Conference at the Intercontinental Holiday Inn at Tysons Corner, VA presents leaders of our emerging high-growth industry from around the world.

In addition to Kontiki’s Todd Johnson, we were pleased last week to add KlikVU CEO Lowell Feuer to the Technology Track; the Recording Industry Association of America’s (RIAA) EVP & General Counsel, Steve Marks, to the Policy Track; and SafeNet’s VP John Desmond to the Marketing Track.

Keynote speakers are eDonkey’s Sam Yagan, GNAB’s Jan Marc Külper, Qtrax’s Allan Klepfisz, and MyPeer’s Les Ottolenghi.

Conference Luncheon Speakers are TAG Strategic’s Ted Cohen, who will address P2P and the entertainment industry, and Digimarc Corporation’s Nate Alvord, who will discuss digital watermarking for P2P.

All attendees will receive a copy of the Committee for Economic Development’s (CED) new report, “Open Standards, Open Source, and Open Innovation: Harnessing the Benefits of Openness.”

Please click here for general directions. From the Washington, DC (WDC) area, simply take the Metro Orange Line (towards Vienna) to the Dunn Lorring stop and take a taxi (3.5 miles). From New York City, take Amtrak to WDC Union Station and transfer to the Metro.

The Policy Track features Butera & Andrews’ Phil Corwin, Dreier LLP’s Josh Wattles, the Motion Picture Association of America’s (MPAA) Fritz Attaway, and StreamCast Networks’ Michael Weiss (Morpheus), and will address MGM v. Grokster – one year later.

The Technology Track features CacheLogic’s David Ferguson, Digital Containers’ Mike Farley, and Telcordia’s Corey Clinger, and will address P2P file sharing – the evolving distribution chain.

The Marketing Track features Global Media Intertainment’s (GMI) Jakob Schwerdt, P2P.com’s Albe Angel, Serling, Rooks & Ferrara’s Ted Weis (the Jun Group), and Ultramercial’s Dana Jones, and will address P2P business models – what’s working and what’s not.

Alston & Bird’s Aydin Caginalp & Renee Brissette will conduct a special session on corporate value optimization for firms in this emerging high-growth industry.

The Content Distribution panel features Fun Little Movies’ Glen Gulyas, MediaPass Network’s Daniel Harris, MusicDish Network’s Eric DeFontenay, and the “Internet’s First Rock Star,” Scooter Scudieri, and will address the perspective of artists and rights holders – P2P for content creators.

The Solutions Development panel features CacheLogic’s Andrew Parker, Mediaguide’s Paul Wright, RawFlow’s Ian Franklyn, and RazorPop’s Marc Freedman, and will address advancement – creating the commercial P2P ecosystem.

The Support Services panel features BitPass’ Denis Concordel, Clickshare’s Rick Lerner, Javien’s Leslie Poole, and P2P Cash’s Tom Meredith, and will address accountability – tracking transactions and paying the players.

Live showcase entertainers for the post-conference networking cocktail reception include Kirsten DeHaan, Drew Gonzalves, and the Internet’s “First Rock Star,” Scooter Scudieri.

Exhibits and demonstrations for the June 23rd DCIA Exposition, held in conjunction with the DMC, feature industry-leading products and services.

P2P MEDIA SUMMIT sponsors include BitPass, Javien, MusicDish Network, Mi2n, Alston & Bird, Digital Media Wire, and Potomac Tech Wire.

Please click here for the full agenda and to register. Don’t miss the first-ever P2P MEDIA SUMMIT. Share wisely, and take care.

Early P2P Music Site Back Online

Excerpted from Daily News & Analysis Report

Like Napster and BitTorrent before it, LTDnetwork’s Qtrax is a brand from the early days of P2P that is relaunching. The reborn version formalized the evolution by announcing a deal with EMI Music to make the music company’s catalog available to its users.

Qtrax still allows consumers to get free music, but there will be no free lunch. The service is ad-supported, and the free songs are in a proprietary ‘.mpq’ format that can only be played a limited number of times and only on the computer to which they were downloaded. Additionally, each time a track is played, the Qtrax player offers click-to-buy purchasing.

It also suggests that the user upgrade to a premium subscription service for a flat monthly fee, in which case they get unlimited downloads in Windows Media format that can be moved or transferred to almost any digital music player except Apple’s iPod.

The songs become unplayable should the subscription lapse. “Qtrax is going to offer the consumer a pretty cool way to sample and discover music in a way that P2P users are used to,” said Ken Parks, EMI’s Senior Vice President for Strategy and Business Development. “The difference is you’ll be presented with stuff that is cleared in a way that respects copyright yet preserving that ‘free’ experience.”

RawFlow Provides P2P Delivery

Excerpted from Streaming Media Report

The Swiss streaming expert Multimedia Architects has completed a trial with RawFlow for two major events that were broadcast by Television Suisse Romande (TSR). The Tour de Suisse (TDS) started on June 10th and continued through June 18th. The TDS is generally considered to be the warm-up for Tour de France, and is a hugely popular event.

As a secondary trial with Multimedia Architects, RawFlow also provided its technologies for a political program on June 14th. Both of these live streaming events were made available from the TSR website (www.tsr.ch).

“We’re really happy to be working with an industry leader such as Multimedia Architects. Switzerland is a very well developed country when it comes to streaming media, and has a much higher average upload capacity than most other European countries, including the UK. With an average upload of 350 Kbps, it is an exciting place to trial our video product for web TV,” said RawFlow CEO Mikkel Dissing.

RawFlow’s Intelligent Content Distribution (ICD) is software-based P2P bandwidth-sharing technology that allows content to be streamed live at a fraction of the cost of traditional streaming. It is an infinitely scaleable solution that saves cost and prevents network congestion while maintaining peak media quality.

Telcordia Establishes India Division

Excerpted from Xchange Magazine Report

DCIA Member Telcordia Technologies has established an India business unit, Telcordia Technologies India Private Ltd. The new division will provide dedicated resources for mobile, fixed line, and cable operators throughout India.

“India already has more than 150 million telecom subscribers, and at its current growth rate, this country will be the world’s second-largest telecom market by 2010,” said Dan Carroll, CEO of Telcordia. “We see immense potential in this region, and our new India entity is the latest example of our commitment to help this country’s service providers capitalize on that potential.”

Telcordia Technologies India Private Ltd. is headquartered in Gurgaon, with program-delivery offices in Hyderabad. It also includes Telcordia India Labs, a facility in Chennai. The office in Tidel Park will provide dedicated software resources including development for mobile, fixed line, and cable operators throughout India.

Indie911’s Cool Summer Project

DCIA Member Indie911 is producing a cool project this summer that is detailed at www.indie911.com/china. Philly based artist/writer Brian Seymour will lead a music workshop and performance series in Shanghai, Tianjin, and Beijing.

The program is being produced in part by Tianjin Music University, and is designed to foster cultural exchange and songwriting collaborations in China, which will be featured online in both Chinese and English.

Indie911 is seeking sponsors interested in developing their brands and business in China. Company branding will be carried permanently on a dedicated webpage, as well as in onsite brochures and distributed materials.

This will be an inexpensive way to reach the music industry and artist community in China. All sponsors will have their own promotional webpage translated into Chinese, which will be permanently linked-to from the website. Indie911 will be publicizing this effort through a series of press releases, music industry trade advertisements, and blog marketing. Indie911’s newsletter reaches over 75,000 people weekly and home page promotions receive over 750,000 monthly page views.

Please contact Brian Seymour at 267-997-3580 or brian@indie911.com for sponsorship information.

PlayFirst Games for the Macintosh

DCIA Member PlayFirst, a leading full-service publisher of casual games, is releasing Macintosh-compatible versions of three popular titles from its casual games portfolio: “Plantasia,” “Subway Scramble,” and “TriJinx: A Kristine Kross Mystery.” Each game is now available for both Mac and PC downloading.

“These titles represent the new generation of casual games that players have come to expect from PlayFirst,” said Kenny Dinkin, Vice President & Executive Producer, PlayFirst. “As part of our commitment to bring PlayFirst games to casual gamers wherever they play, we’re proud to share our innovative titles with the fun-seeking and inventive Mac community.”

Each game is free to try for 60 minutes or purchase for $19.95. To download, or to obtain more information about Mac games from PlayFirst, please visit www.playfirst.com/category/mac.

Video-Sharing Site Raises $5 Million

Excerpted from Digital Media Wire Report

One True Media, the developer of an online video-sharing community, announced on Monday that it has raised $5 million in its first round of venture capital financing from Kleiner Perkins Caufield & Byers.

Since launching in December 2005, the company has registered 335,000 members, who can upload, edit, add music, and share their personal videos.

The company has partnered with BabyCenter, an online resource for new parents, as well as blogging software developer SixApart, on the family-targeted site.

“Everyday consumers are shooting millions of photos and videos but they have no way to combine all that media into a compelling story that will make their friends or family laugh or cry,” said One True Media CEO Mark Moore.

“We want to make it easy for people to communicate the emotion that is often hard to see in still photos. We eliminate the complexity of editing and mixing digital media, so that everybody can be the director or star of their own video.”

P2P Population Continues Climb

Excerpted from Slyck.com Report by Tom Mennecke

USA Today published an article Monday quoting RIAA CEO Mitch Bainwol that online piracy has been “contained.”

“The problem has not been eliminated,” said Bainwol. “But we believe digital downloads have emerged into a growing, thriving business, and file-trading is flat.”

Perhaps several years back, such an assertion would simply have been accepted. However, the substantial logistical infrastructure that accommodates P2P and file-sharing, such as various forums, blogs, news sites, etc., is of such magnitude now that alternative viewpoints are no longer ignored.

Reflecting this change in mass media, virtually every publication that published an article on Mr. Bainwol’s decree was met with varying degrees of skepticism.

It’s possible the RIAA had little choice but to make a public statement in support of its lawsuit and anti-piracy campaign. Its efforts recently received black eyes from two unexpected sources – Sony America VP of Digital Media Technology Strategy, Albhy Galuten, and ex-RIAA chairperson Hilary Rosen.

Galuten’s take on the online copyright conflict is the polar opposite of Mr. Bainwol’s, stating the music industry is not “winning the battle against pirating.” The statement was made last Wednesday at the Digital Media Summit in Los Angeles.

Rosen criticized the idea of suing alleged P2P pirates, and the entire concept of digital rights management (DRM). In an article published on the liberal blog site, The Huffington Post, Rosen shared her skepticism of the RIAA’s current legal strategy.

“I do share a concern that the lawsuits have outlived most of their usefulness and that the record companies need to work harder to implement a strategy that legitimizes more P2P sites and expands the download and subscription pool by working harder with the tech community to get devices and music services to work better together.”

“That is how their business will expand most quickly. The iPod is still too small a part of the overall potential of the market and its proprietary DRM just bugs me. Speaking of DRM, it is time to rethink that strategy as well.”

The latest statistics from DCIA industry data resource Big Champagne indicate that the P2P population has continued its overall climb. At 9,735,661 in May 2006, the P2P population is at its second highest, down slightly from its peak of 9,992,298 in March. There was an increase of 138,253 from the month of April, however.

The May 2006 statistic represents a population increase of 12.4% over May 2005, or an increase of 1,070,342 individuals.


The most significant aspect of these calculations is they do not represent the entire file-sharing picture – they exclude the BitTorrent community. Because of BitTorrent’s decentralized protocol, it is difficult to obtain an exact number of participants. What is known however is the massive amount of bandwidth this protocol consumes, which outweighs other P2P networks combined.

If we were to only judge BitTorrent on the amount of unique individuals traveling The Pirate Bay, there would be an addition of at least 1 million individuals. Some estimates are much greater, and easily double the number published by Big Champagne.

The Pirate Bay Back Up Following Crackdown

Excerpted from Digital Media Wire Report

The Pirate Bay, a Sweden-based site that provides links to free movie and music files on the BitTorrent file-sharing network, has returned its servers to its home country following a police crackdown that temporarily forced relocation to the Netherlands, The Register reported.

Working with the Motion Picture Association of America (MPAA), Swedish authorities in May conducted raids and seized Pirate Bay servers. The shutdown prompted hackers to attack the websites of Sweden’s police and government, in addition to street protests against the actions.

Pirate Bay site operators said in a blog posting that they are now looking to spread the site’s servers across several locations in order to make it more difficult to shut down the service again.

Coming Events of Interest

  • P2P MEDIA SUMMIT – June 22nd-23rd at the Intercontinental Holiday Inn, Tysons Corner, McLean, VA. This first annual DCIA Conference & Exposition will cover policy, marketing, and technology issues affecting commercial development of this emerging high-growth industry. Exhibits and demonstrations will feature industry-leading products and services. For sponsor packages and speaker information, please contact Karen Kaplowitz at 888-890-4240 or karen@dcia.info. DCIA Members Music Dish Network and Javien are our media and e-commerce partners respectively. Plan now to attend.

  • Washington Digital Media Conference – June 23rd at the Ritz-Carlton, Tysons Corner, McLean, VA. DCIA Conference & Expo attendees can attend this executive briefing on emerging business, policy, and technology issues & opportunities at half-price. This is a must-attend event for media, entertainment and technology businesses, educational institutions, and government agencies involved in the digital distribution of media. The Washington Post calls the event: “a confab of powerful communicators and content providers in the region.”

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