September 18, 2006
Volume 14, Issue 11
Welcome VeriSign
Please warmly welcome VeriSign, Inc. 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.
In March, VeriSign announced that it had entered into a definitive agreement to acquire Kontiki, a leading provider of managed peer-to-peer (P2P) delivery systems for high-quality video, software, and digital content. The Kontiki Delivery Management System (DMS) software-based solution utilizes P2P delivery technology to securely and efficiently deliver rich media content, or any large-file format, directly to a PC.
Some of the world’s largest broadcast media companies, including AOL, BBC, and Sky, use Kontiki to publish, deliver and track the consumption of DVD quality video content to millions of consumers. Kontiki’s patented P2P technology is also deployed at large enterprises enabling them to deliver high-quality video and software updates at a fraction of the cost of traditional delivery solutions.
Kontiki’s systems subsequently formed an important component in the development of VeriSign’s Digital Content Services (DCS) platform, which enables the delivery of rich media over broadband networks to personal computers, television sets, and portable devices.
This week, VeriSign and News Corporation announced a joint venture to form the world’s largest direct-to-consumer provider of mobile entertainment. The new company will immediately become the largest customer for VeriSign’s DCS platform.
News Corp.’s Mobizzo unit and VeriSign’s Jamba subsidiary will combine to create the new company, with market-leading mobile content production and delivery capabilities and an immediate capability to serve 30 territories with a potential reach of more than a billion mobile subscribers.
Other Leading companies already using VeriSign’s DCS include Sprint, Cingular, Fox, Yahoo, and eBay.
P2P MEDIA SUMMIT LA
There are just ten days left to take advantage of early-bird rates for the P2P MEDIA SUMMIT LA, the DCIA’s first-ever Los Angeles Conference & Exposition taking place October 23rd-26th in Santa Monica, CA, and save up to $300.
This is a must-attend event for software developers and distributors, content providers, service-and-support companies, and all other parties interested in commercial development of the P2P distribution channel.
Registrants for the full Conference & Exposition are also entitled to admission to the Digital Hollywood Fall Conference at no additional charge. Please click here to register online or call 410-476-7965.
The P2P Digital Watermark Working Group (PDWG) will also meet in conjunction with the P2P MEDIA SUMMIT LA. Interested and qualified parties are encouraged to contact the DCIA for more information, and to register to participate.
Report from CEO Marty Lafferty
 Plan now to attend the Distributed Computing Industry Association’s inaugural Los Angeles Conference & Exposition.
The P2P MEDIA SUMMIT LA is scheduled for October 23rd–26th at the Doubletree Guest Suites in Santa Monica, CA.
Our October 23rd Conference will feature keynotes from top P2P software distributors, panels of industry leaders, valuable workshops, and much more. There will be a continental breakfast, luncheon, and networking cocktail reception with live entertainment.
The October 24th-26th Exposition is being held in conjunction with the Digital Hollywood Fall Conference, and your registration for the full DCIA Conference & Exposition includes that event as well.
Digital Hollywood Fall has become the industry’s premier entertainment and technology conference where everything you do, everything you say, and everything you see means business.
Keynote speakers for the October 23rd DCIA Conference include GNAB’s Jan Marc Külper, Kontiki’s Todd Johnson, QTRAX’s Allan Klepfisz, and MyPeer’s Les Ottolenghi.
VeriSign’s acquisition of Kontiki, a leading provider of managed P2P delivery systems for high-quality video, software and digital content, established its broadband content services platform to enable the delivery of rich media over broadband networks to personal computers, television sets, and portable devices.
With the recent launch of its white-label P2P platform branded as In2Movies with partner Warner Bros., GNAB, a service of the Bertelsmann Group’s arvato mobile, exemplifies the industry’s closest collaboration to-date of the entertainment and technology sectors.
QTRAX was developed by e-commerce software maker LTDnetwork, which has signed EMI and The Orchard to make their catalogs available via the world’s first advertising-supported P2P music distribution service. QTRAX will also provide a premium subscription option and the ability to purchase songs and albums a la carte.
And as a result of INTENT MediaWorks unprecedented development and integration work to leverage multiple file-sharing platforms and UI configurations, as well as web-based distribution, MyPeer represents the most advanced implementation of P2P in the marketplace today.
Our luncheon speakers will be Reed Stager, Executive Vice President of Digimarc Corporation, and Mitch Singer, Executive Vice President, Digital Policy Group, Sony Pictures Entertainment (SPE).
Limor Schafman, President of Keystone Tech Group, will lead a special workshop on IPv6.
Featured panelists include senior executives from Abacast, Altnet, Beyond Media, BitPass, Blitzfile, Digital Containers, Dreier LLP, EZTV, Fun Little Movies, HackBack Media, Indie911, Javien, LTDnetwork, MediaPass Network, Orbis Messaging, PeerApp, P2P Cash, P2P.com, RawFlow, RazorPop, SafeNet, Seamless P2P, TAG Strategic, and, Ultramercial.
Additional speakers will be announced in coming weeks.
Live showcase entertainers for the post-conference networking cocktail reception will include Kirsten DeHaan and the Internet’s First Rock Star Scooter Scudieri.
Exhibits and demonstrations for the October 24th-26th DCIA Exposition, held in conjunction with the Digital Hollywood Fall Conference, will feature industry-leading products and services.
Don’t miss the opportunity to participate in this 2006 inaugural event. Register online or call 410-476-7965. For sponsor packages and speaker information, please contact Karen Kaplowitz, DCIA Member Services, at 888-890-4240 or karen@dcia.info. Share wisely, and take care.
Raketu Launches Flagship P2P Service
Raketu Communications has launched its next generation P2P communications, information, and entertainment service.
Raketu’s communications features include high-quality VoIP, dial-out calling to landline/mobile phones, IM, SMS-text messaging, and file transfers/sharing. Raketu’s information features include news, sports, weather, stock feeds, and an advanced Internet and travel searching facility. Raketu’s entertainment features include a podcast reader/player, games, and a full-featured multi-media player with karaoke. Raketu supports click-to-call, click-to-IM, click-to-SMS, global online presence, and enhanced social networking features.
Raketu’s unique P2P technology allows the highest quality of VoIP calling and the highest call-completion, without the security issues associated with super-nodes and other traditional P2P technologies. And unlike other P2P communications providers, Raketu does not use one user’s computer for other users’ communications.
With Raketu’s rakOut (dial-out) services, users have access to some of the least expensive, highest quality computer-to-phone calls available anywhere.
More exciting services are planned for the coming months when Raketu will launch in-bound calling, advanced voice-mail, large conferencing, and more. Today, Raketu provides the most comprehensive integrated communications, information, and entertainment tool available, providing more options, more control, and more personal activity features than any other service.
Raketu runs over any Internet connection including dial-up. Anyone on the Internet with a Windows PC and a headset can start using Raketu immediately.
Media Delivery Platform for Large Files
Excerpted from ThomasNet Report
Combining scalable P2P technology with distributed physical network of P2P caches, VelociX Accelerated Media Delivery Platform from CacheLogic provides an end-to-end solution for publication and high-speed delivery of digital media to mass audiences, enabling downloads of television programs, movies, or other rich content in minutes.
Cache Discovery Protocol dynamically controls interaction with P2P clients operating on VelociX customer networks to enhance delivery of authorized content.
World’s Largest P2P Internet TV Portal
ZIM Corporation, a global mobile service provider and application developer, has partnered with PPLive of China, the largest P2P Internet TV portal in the world. Through their partnership, ZIM-PPLive, the companies will offer application development and content aggregation for P2P Internet TV.
PPLive currently has more than 50 million registered users, approximately 70% of which are based in China. ZIM-PPLive will focus on aggregating North American and European content providers and advertisers to the PPLive platform.
"With this partnership, we hope to leverage our existing relationships and technical expertise to expand our role into the Internet TV market. P2P Internet TV is a very hot space, and we are excited to be partnering with one of the world’s leaders," said Dr. Michael Cowpland, President and CEO of ZIM."
ZIM-PPLive provides free online streaming TV programs. Unlike other streaming Internet TV platforms which charge large set-up fees, monthly hosting fees, and additional fees per gigabyte of bandwidth, ZIM-PPLive offers unlimited bandwidth for a flat rate. It is based on integrated P2P technology which provides users with a smooth TV viewing experience with no interruptions.
In P2P technology, everyone becomes a broadcaster without the cost of traditional streaming. The more users that are online, the faster the programs can be loaded. ZIM-PPLive scales well across existing infrastructures to enable the top program to have over half a million simultaneous viewers.
Currently, most of the media content comes from TV channels in China, with international content being added every day. ZIM-PPLive has full digital rights management (DRM) to ensure that all content offered has copyright protection.
"We are very excited about this partnership with ZIM to expand our North American presence and to continue to grow the PPLive user base outside of China. We believe the P2P Internet TV opportunities in North America are still in the early stages and ZIM is very well positioned to capitalize on this hot new market opportunity," said Bill Yao, CEO of PPLive.
Nettwerk Music Group Selects iLoop Mobile
iLoop Mobile, a leader in mobile application software, announced that DCIA Member Nettwerk Music Group, Canada’s leading privately-owned record label and artist management group, has selected iLoop Mobile to create and deploy e-commerce mobile Internet sites using Nextcode’s ConnexTo code reading technology. The hit band Barenaked Ladies will be the first to use the technology.
Barenaked Ladies has achieved amazing popularity, multi-platinum album sales, radio hits, and sold-out concerts throughout North America and Europe. The band is reaching out to its fans using mobile in a new way on its latest album, "Barenaked Ladies Are Me," which debuted September 12th. Special 2D codes have been placed on tour posters and advertising. Using their camera phones to read codes, fans can easily access the Barenaked Ladies’ mobile Internet site with free and paid mobile content.
"We are always looking for unique ways to reach the fans and give them new offerings," said Brent Muhle, General Manager of Nettwerk. "iLoop Mobile’s technology offers us the ability to deliver content in a creative way that supports our e-commerce business needs."
Javien Partners with Gold Mobile
DCIA Member Javien Digital Payment Solutions and Gold Mobile have partnered to provide a comprehensive "m-commerce" solution for companies planning to capture a share of the mobile content sales market. The partnership has simplified and automated the integration of e-commerce with m-commerce while providing the consumer with many different payment options for purchase or subscription of mobile content.
"This partnership revolutionizes m-commerce technology because it bridges the gap between the payment and delivery of digital content to mobile devices," said Leslie Poole, Javien CEO. "We are thrilled to be working with Gold Mobile, one of the premier firms in the industry."
Now a consumer can purchase or subscribe through the web to premium mobile content and be authenticated automatically when they log-on from their devices. For consumer convenience, merchants can offer a variety of payment options including credit/debit cards, PayPal, and FirstGate accounts, ACH, bill-to-landline and cell-phone, as well as SMS and MMS premium billing. The user can then view the content or download the purchased ring-tones, wallpaper, video, games, music, and articles.
Bob Gold, CEO of Gold Mobile, explained, "Our technology enables us to rapidly design, build, test, operate, and launch end-to-end mobile applications." The company develops, hosts, and provides support services for mobile portals, channels, applications, and marketing campaigns. In addition, it leverages the Dynetic global mobile delivery platform to support over 3,000 mobile devices and over 40 network operators throughout the United States, Europe and Asia.
Poole added, "Javien’s patent-pending micro-payment aggregation engine gives an edge to merchants selling mobile content offered typically at price points below $5." Transaction costs for small payments can significantly reduce profit margins if micro-payment aggregation rules are not implemented.
Zennstrom Predicts Free Phone Calls
Excerpted from Monsters and Critics Report
Talking on the phone will be free within a decade, Niklas Zennstrom, creator of the globally popular free Internet communicator Skype predicted Thursday in Warsaw.
"Skype’s vision has always been to enable everyone around the world talk for free," he said.
"In ten years’ time all telephone calls will certainly be free, whether you’re calling someone on a computer or telephone," he said.
Zennstrom also outlined a revolutionary Skype project in France which allows all Skype users there to make free calls to land-line telephones in the country.
"This is a ground-breaking move with free Skype calls to land lines – we wanted to see the market reaction and what it does for our users before we do it in other places," Zennstrom said.
DCIA Member Skype’s founder said there were no plans as yet to repeat the project in Poland where free voiceover Internet protocol (VoIP) calls offered by Skype have gained the communicator 8 million users.
Zennstrom was attending a discussion co-organized by Poland’s Grupa Onet.pl popular website portal.
Also attending was Lech Walesa. The legendary leader of Poland’s freedom-fighting Solidarity trade union that peacefully defeated communism in 1989 admitted to being an enthusiastic user of Internet telephony.
"Information should be as free as possible," said Walesa, insisting the free flow of information could act as a catalyst for the development of various interests, economic and otherwise.
StreamerNet Completes Financing Round
StreamerNet Corporation announced that it has secured a round of early-stage financing bringing the total amount of capital raised to-date to more than $1.5 million.
In related news, StreamerNet also confirmed that the company is currently engaged in a Series A round of venture capital/private equity fund-raising.
"Building on nearly $1.0 million in early stage financings in 2005 and early 2006, this most recent financing strengthens our cash position and allows us to focus on significant revenue development and profit. Investments prior to 2006 were primarily utilized for intellectual property management, technology R&D, and introduction of our mature Version 3.0 of the StreamerNet Mobile Video Producer technologies," said William R. Hornbeck, President & CEO of StreamerNet.
eDonkey Firm to Pay RIAA $30 Million
Excerpted from BetaNews Report by Nate Mook
DCIA Member MetaMachine, the company behind the popular file-sharing software eDonkey, has agreed to pay the Recording Industry Association of America (RIAA) $30 million to settle claims it facilitated copyright infringement.
"With this new settlement, another domino falls, and we have further strengthened the footing of the legal marketplace," said RIAA Chairman & CEO Mitch Bainwol. The RIAA previously settled with the operators of BearShare, i2Hub, WinMX, and Grokster.
As part of the settlement, MetaMachine has agreed to cease distributing eDonkey, eDonkey 2000, Overnet, and other variants of the P2P software. The company previously announced its intention last year, after the Supreme Court ruled file-sharing networks could be liable for the actions of their users.
MetaMachine CEO Sam Yagan explained at the time that his company will, "convert eDonkey’s user base to an online content retailer operating in a closed P2P environment," and said he expects "such a transaction to take place as soon as we can reach a settlement with the RIAA."
It’s unlikely that Tuesday’s settlement will have any impact on the eDonkey file-sharing network itself, which exists without a centralized server that can be shut down. An open-source iteration of the software, known as eMule, continues to be developed and is now in use by the vast majority of eDonkey downloaders.
Kuro Settlement & Conversion
Taiwan online music file-sharing network Kuro has agreed to pay undisclosed damages to settle a recording industry lawsuit, according to the International Federation of the Phonographic Industry (IFPI), which filed the civil action.
Under terms of the settlement, Kuro parent company, Fashion Now, will stop distributing its open P2P software and close the copyright-infringing service by October 15th. The website will instead operate a licensed portal for music downloads, the federation said.
P2P services distribute information directly among users instead of through a central server. Kuro had charged users a monthly fee to access music files and has an estimated 500,000 subscribers in Taiwan and China.
A statement posted on Kuro’s website said the company had settled the case and also received authorization from international and domestic music companies to operate a licensed download website.
"Starting from now, users can enjoy top quality music on Kuro without any doubts about lawsuits or any possibility of being sued," the company said on its website.
NARAS Calls for Music & Technology Truce
Excerpted from Digital Music News Report
The music industry has been a war zone for years, pitting consumers, labels, and technology companies against one another. Attempting to quell the acrimony, Recording Academy president Neil Portnow recently urged the leaders of various camps to cooperate, not litigate.
"We all know that the next five years will set in motion new policies and business models that will guide our industry for decades to come," Portnow said during a "Grammys on the Hill" dinner in Washington, DC on Wednesday. "The technology and music industries can continue the quote-end-quote war...or, we can work together toward an environment in which we all can win."
Portnow pushed for a truce among the various camps, and outlined a plan that aims to reduce heavy rhetoric and accusations. He also urged his audience to increase communication and incorporate artists into the conversation.
Portnow announced the creation of a task force to push the mission, while underscoring the need for the industry to be "both pro-copyright and pro-technology."
The speech was delivered to a broad cross-section of the music industry, including publishers, retailers, and major labels. Various members of Congress were also in attendance. The Recording Academy, or NARAS, has recently initiated a "kinder, gentler" stance towards issues like piracy, according to one well-placed source, offering a contrast to the RIAA approach.
Microsoft Updates Software Against Hacker
Excerpted from Associated Press Report
Microsoft is scrambling to update its Windows Media software after a hacker released a program that circumvents a safeguard designed to prevent people from freely copying digital movies and songs.
The effort began weeks ago. The program, dubbed FairUse4WM, strips digital rights protection from Windows Media-encoded files distributed by companies such as Movielink and Amazon, which launched a video download service last week.
The Redmond, WA-based software maker released its first fix August 28th. The hacker quickly released another version of the program, promoting it on Internet message boards as a way to allow "fair use" of purchased digital media files.
Video Business Model Ready to Move from Beta
Excerpted from NY Times Report by Rishard Siklos
Video mania is in full swing. Amazon is finally doing movie downloads. Apple is touting a new wireless gizmo to beam movies from laptops to TV screens. NBC is introducing a video syndication service that might pit it against Google and Yahoo, and it’s joining the other big networks in putting its shows online for free with advertising. MTV is working with Google to populate its video content all over the web.
It is wholly unclear which, if any, of these or any of the dozens of other recent efforts that have been announced will break away from the pack, which is why many of them are couched as "tests" and "experiments." (Whoever thought up this idea of websites forever being in "beta" deserves a prize as the spin-meister of their generation.)
Still, a few things are clear from the recent news flow. First of all: yes, the world has gone batty over video. Thirty-second clips, three-minute spoofs, half-hour sitcoms, TV dramas that haven’t been shown in decades, rap videos, Hollywood blockbusters, and feeds from TV news outlets big and small are flooding online. The term video itself is already starting to sound old – the equivalent of songs before the advent of MP3s and downloads.
The good news – and my second point – is that there’s gold in them there hills. Video delivered over the Internet is clearly shaping up to be an actual business that advertisers are interested in. The broadcasting (netcasting?) of television programs and clips on the web moves the debate away from Internet-versus-TV because if TV executives put their best material online and get paid for it, the proposition becomes Internet-cum-TV.
The research firm eMarketer estimates that video-related advertising will top $2.3 billion within four years.
Net Neutrality May Kill Telecom Bill
Excerpted from Technology Daily Report by David Hatch
Senate Commerce Chairman Ted Stevens (R-AK) publicly acknowledged that the telecommunications legislation he has championed for more than a year is unraveling.
"Net neutrality was the most hotly debated portion of our communications bill, and it is the subject that is holding up the communications bill," he said at a confirmation hearing for FCC Chairman Kevin Martin.
The measure would not mandate network neutrality regulations to bar high-speed Internet providers from blocking or degrading competing content. But it would require the agency to examine the issue and protect the rights of consumers to access websites unimpeded.
The lack of stricter neutrality safeguards, however, has splintered the Senate and the communications industry.
The network neutrality issue "may well lead to the telecom measure’s total defeat this year after 19 months of work on that bill," Stevens said of his measure, which his committee narrowly approved in June but which has not reached the floor.
Sen. Ron Wyden (D-OR) has placed a procedural "hold" on the bill and vowed to block it until it contains strong network neutrality provisions to keep Internet providers from creating so-called high speed lanes and offering favored customers faster service for a price.
Tuesday’s hearing exposed deep fissures on other matters when Stevens expressed concern about Martin’s plan for so-called reverse auctions.
Martin also drew criticism from Sen. Barbara Boxer (D-CA), who accused him of favoring large companies over consumers regarding rules for network neutrality.
Coming Events of Interest
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Web 2.0 - Myth or Reality – September 20th in New York, NY. What is Web 2.0 and why is it generating buzz and staggering valuations? Take a look at this new wave as it defines the resurrected Silicon Alley from user generated media, open-source interactions of all kinds, and a flattening of the global marketplace.
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2006 Word of Mouth Marketing Forum – September 21st–22nd in Arlington, VA. Learn the ins and outs of one of the most innovative and efficient marketing techniques. New tools and technology have made Word of Mouth Marketing one of the best strategic tools marketers can use to build brand awareness and customer loyalty.
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OMMA Awards – September 26th at the Marriot Marquis in New York, NY. The OMMA Awards honor the brand marketers, agencies and content providers who continue to push the potential of online advertising creative. The OMMA Awards celebrate the year’s most innovative and brilliant creative work in 27 categories. Submission deadline is July 28th.
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Digital Music Forum West – October 4th-5th in West Hollywood, CA. Don’t miss the opportunity to participate in the premier event for music industry decision-makers focused on digital business models and legal issues impacting music. The DCIA will present a special panel on P2P featuring Chip Venters, CEO, Digital Containers; Joey Patuleia, VP, Artist Relations, INTENT MediaWorks; Daniel Harris, CEO, MediaPass Network,; Michael Weiss, CEO, StreamCast Networks; John Desmond, VP, MediaSentry Services, SafeNet; and Eric Garland, CEO, BigChampagne.
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6th Annual Future of Music Policy Summit – October 5th–7th at McGill University in Montreal, Canada. FMC sees hosting this Summit in Canada as an opportunity to expand its perspective on a range of issues – from copyright, to sampling, to digital royalties, to radio, to how various musical communities are managing change. The music marketplace has become truly global, and some of the biggest challenges are navigating the assortment of legal and licensing schemes that encourage and/or impede the promotion and sale of music.
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Webcasts, Downloads & Ring-Tones – October 11th in San Francisco, CA. The National Association of Record Industry Professionals (NARIP) presents an overview of the legal and practical aspects of the NEW recording industry Whether you are an artist, manager, lawyer, record executive, or producer this music business overview is essential to understanding new income streams such as digital downloading, webcasting royalties, mobile music deals, video games and certain types of branding.
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P2P MEDIA SUMMIT LA – October 23rd-26th in Santa Monica, CA. The Fall 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. Plan now to attend.
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Digital Hollywood Fall – October 24th-26th at Loews Santa Monica Beach Hotel in Los Angeles, CA. The preeminent digital media and entertainment conference in the country. This year featuring more than 70 different sessions and over 450 speakers. The DCIA will moderate "Track I: Next Generation P2P Music and Film - DRM, Paid for Pass-Along and Other Legal Distributed Computing Models and the Entertainment Industries."
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