Digital Media Stocks: Using Law and Technology Anti- piracy Strategies to Deter Illegal Downloads of Music and Videos

Opportunities and Solutions for Digital Media Stocks DivX, Inc. (NASDAQ: DIVX), USA Video Interactive Corporation (NasdaqOTCBB: USVO) (CDNX: US.V), ADB Group (SIX: ADBN)


POINT ROBERTS, WA –August 25, 2009 www.DigitalMediaStocks.com , an investor
and industry portal for the digital media sector within Investorideas.com reports on proposed law, and technology advances on the digital media online piracy battlefront.

How big is the problem? The most pirated movie, Watchmen, released March 2009 was pirated
16.9 million times according to sources: Big Champagne, boxofficemojo.com. The TV show, Heroes, was reportedly pirated 54.6 million times.

According to Patrick Gregston of watermarking technology company, USA Video Interactive Corporation (NasdaqOTCBB: USVO) (CDNX: US.V ), the opportunity created from the piracy problem is significant. “The content marketplace is now a dynamic field as digital technology changes and challenges the world’s largest content distributors. We are now seeing a marked increase in inquiries from major studios and other content owners as to the use of our specialized forensic technologies,” stated the company’s Head of Business Development.

“The power of digital technologies to make their businesses more efficient and create new business with new markets and consumers is becoming more compelling than the threat of piracy. Yet engaging those opportunities requires innovative security strategies that enhance access and enable transactions. More and more content owners are seeing the efficacy of our solutions as compared to the complicated and ineffective methods that have alienated consumers and failed to prevent theft”. The company has a two year track record with a well-known Hollywood studio using its watermarking technology.

The piracy issues have also benefited DivX, Inc. (Nasdaq: DIVX), a digital media company that announced deals this month with two major studios, for secure downloads of movies. On August 4th, the company announced a deal with Paramount Digital Entertainment that will enable online retailers worldwide to offer Paramount Pictures feature films for secure download in the high-quality DivX® video format. The company’s technologies enable users to compress, secure, and distribute digital video.

Advanced Digital Broadcast, a leading supplier of technology to the global digital television industry, announced it is adding watermarking capabilities to its TV convergence solutions portfolio. ADB has integrated Civolution's VTrack watermarking technology (www.civolution.com) into its digital TV set-top boxes, thus providing operators with further means of protecting content.

ADB is a member of ADB Group (www.adbholdings.com). ADB Group is publicly listed on the Swiss stock exchange (SIX: ADBN).

"The integration of VTrack in ADB's set-top boxes shows VTrack's flexibility in integrating with different platforms ranging from cable, satellite, terrestrial to IPTV. VTrack is a robust and easy to integrate solution," said Alex Terpstra, CEO of Civolution. "Now with the increased availability of high definition and early release content, the (camera) capture and distribution of high quality content copies is a new threat requiring fast, efficient and cost-effective solutions,'' concluded Terpstra.

Countries are turning to law, as well as technology, to crack down on illegal downloads. Three-strikes laws have been proposed in the U.K., France and New Zealand. The three strikes law would empower ISP’s to cut off Internet access following warnings and repeated illegal downloads of pirated music and videos.

The Department for Business, Innovation and Skills, UK www.coi.gsi.gov.uk just announced it is seeking views on the idea of including a power, under the forthcoming Digital Economy Bill, for the Secretary of State to direct Ofcom to introduce technical measures to clamp down on piracy, if necessary.

This would involve an obligation on Internet Service Providers (ISPs) to take action against individual, repeat infringers - for example by blocking access to download sites, reducing broadband speeds, or by temporarily suspending the individual’s Internet account.

“Technology and consumer behaviour is fast-changing and it’s important that Ofcom has the flexibility to respond quickly to deal with unlawful file-sharing.

Featured Digital Media Showcase Company
Digitalmediastocks.com and Techsectorstocks.com feature the company profile for USA Video Interactive Corporation (NasdaqOTCBB: USVO) (CDNX: US.V) (Berlin: USF.BE) (Frankfurt: USF.F), a company that designs and markets technology for delivery of digital media. The Company's products add anti-piracy solutions to existing distribution channels and extend distribution into interactive channels with Video-on-Demand.

USA Video Interactive's current focus is on MediaEscort™ and SmartMarks™, to help the film and television industry fight piracy, providing a robust means for producers and distributors to invisibly mark their content with the proof authorities need to catch the crooks who steal films, television shows, and video content.

About MediaEscort(TM):
MediaEscort(TM) is an industry first, IP-centric, real-time online watermarking product, with its own administrative infrastructure fully integrated into customer's video servers. It will automatically and seamlessly embed SmartMarks -- imperceptible forensic information in every frame of video content -- during Internet delivery, providing the proof courts need to protect intellectual property rights, indicting and convicting the individuals who steal the original material. Using MediaEscort, copyright holders are able to protect their content without restricting the fair uses of legitimate customers. MediaEscort's SmartMarks work across all distribution and presentation channels and technologies. It seamlessly provides an entire system for piracy protection without frustrating consumers, who will continue to have the freedom to enjoy content in their own way. In addition, MediaEscort has the ability to support all major codecs in the industry, while preserving the SmartMark and the process is fully compatible with DRM.

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