InterTrust Announces Internet and In-Store Kiosk Music Vending Solution New Commerce 1.0 Addresses Music Piracy, Sales Channel, and Commerce Model Issues

NEW YORK--(BUSINESS WIRE)--July 13, 1998--InterTrust Technologies 
Corporation today announced support for Internet and in-store kiosk 
music vending using InterTrust(TM) Commerce 1.0, a digital commerce 
system. The recently announced system enables artists, producers, and 
retailers to package, sell, and deliver music over the Internet or 
in-store music kiosk vending machines. Commerce 1.0 solves three music 
industry problems relating to online distribution of music - piracy, 
distribution channel support, and new commerce models for the online 
sales channel. 

InterTrust Commerce 1.0 is a digital commerce system that enables music 
and other digital information to be packaged, sold, and delivered via 
the Internet or any digital medium with persistent protection, 
distribution channel support, superdistribution, and easy commerce 

The system with music vending capabilities will be publicly shown for 
the first time at the Jupiter Conference on July 15-16, 1998, 
at the Crowne Plaza Hotel in New York. In a related announcement, 
InterTrust announced receipt of an export license for its Commerce 1.0 
and Enterprise 1.0 products. 

``Internet music sales and fulfillment require positive, satisfying 
user experiences, superior economic value, and effective securing of 
all participant interests,'' said Victor Shear, founder and chief 
executive officer of InterTrust. ``All relevant parties must be paid, 
and commercial processes must be transparent and trivially easy to 

Shear added, ``Today's announcement by InterTrust sets the stage for 
successful Internet, DVD, and in-store music distribution models. With 
Commerce 1.0, the industry will be able to profoundly increase its 
sales and profits while simultaneously reducing the risks of piracy, 
fraud, and security breaches.'' 

Addressing Music Industry Issues 
InterTrust Commerce 1.0 addresses three fundamental music industry 
problems associated with digital music distribution: 

-- Piracy: InterTrust's persistent protection is the result of 
industry leading technology inventions that prevent widespread 
theft and copying, such as posting of digital music masters on 
the Internet. 

-- Distribution Channel Support: InterTrust's value chain capability 
allows distribution channel partners to be included in the sales 
and commissions from Internet-based sales and fulfillment. 

-- New Online Commerce Models: InterTrust's Commerce Modeler(TM) 
product enables music industry developers to readily incorporate 
elements associated with cross-merchandising, promotion, direct 
response marketing, and event coordination related to the sale of 

Internet Music Market 
Internet music sales were $37 million in 1997, according to the 
Recording Industry Association of America (RIAA). Sales for 1998 are 
forecast to increase to $179 million and then grow to $2.8 billion in 
2002, according to Jupiter Communications, a New York-based market 
research firm. 

The growth in sales will be fueled by the transition from physical 
fulfillment to Internet-based fulfillment of music sales. 
Internet-based fulfillment will require increased consumer Internet 
bandwidth and the adoption of software to protect the rights of music 
creators, publishers, distributors, and sellers. 

``Music companies can take advantage of Commerce 1.0 now to market to 
college students and upscale consumers with high-bandwidth Internet 
access at home, school, or work,'' said Joseph W. Jennings, senior vice 
president, Marketing, InterTrust Technology Corp. ``Whether you want to 
sell through in-store kiosks or over the Web, Commerce 1.0 allows music 
vending to be protected, efficient, and highly flexible.'' 
Commerce 1.0 for Internet and In-Store Kiosk Music Sales 

Using Commerce 1.0, consumers will download an InterRights(TM) Point, 
establish their RightsWallet(TM), select music from both websites and 
kiosks, and receive music in a DigiBox(TM) container on a purchase, 
pay-per-use, pay-to-own, or rental basis. They can save their music, 
for example, to a hard drive, Recordable CD, flash RAM, or DVD-RAM 
disc, while maintaining persistent protection of creative, publishing, 
and distribution rights. 

Consumers can receive incentives to pass along music to friends for 
purchase and use, and can receive cross promotions for other music, 
merchandise, tickets, or music videos. Payment and usage information is 
collected either online or through passing aggregated micro-transaction 
information to an InterTrust payment and usage processing partner. 
Payment is then disaggregated and parsed to value chain members: 
stores, distributors, record companies, artists, agents, etc. 

The Commerce 1.0 system uniquely delivers the persistent protection, 
easy business modeling, usage auditing, and payment processing 
necessary for efficient digital commerce on the Internet or in-store 
music kiosk. It is compatible with, and makes safe, music industry 
encoding standards, including AAC, MP3, Twin-VQ, AVI, WAV, AC3, and Red 

Music industry developers can use, if desired, third-party payment and 
usage processing center partners such as Rights Exchange, Inc. 
(formerly SOFTBANK Net Solutions) or Mitsubishi Corporation for 
information and payment processing services, allowing fast 

Consumer systems currently require Microsoft Windows(R) 95 or NT(R) 4.0 
and 5 MB minimum disk space. Commerce infrastructure and processing 
requires Microsoft NT 4.0 or Sun Solaris(TM) 2.5.1. Platforms under 
development include Windows CE, Windows 98, Microsoft NT 5.0, and Java. 
``If your developers can use Visual Basic, they can readily build 
sophisticated music marketing, selling, and fulfillment systems,'' said 
Richard Landsman, InterTrust vice president of engineering. ``Whether 
creating a vending application for the Internet or in-store kiosk, 
InterTrust is the only software available that can persistently protect 
your content, pay your partners, and track usage over a wide range of 
consumers worldwide, as well as generally automate asset management.'' 

The Company 
InterTrust is the digital commerce and information security company. It 
has shipped digital commerce systems for building commerce, enterprise, 
and extranet solutions. InterTrust enables partners and customers to 
quickly respond to new business conditions, digital distribution 
channels, and enterprise business relationships with protected, 
efficient, and flexible systems. The InterTrust Strategic Technologies 
and Architectural Research Laboratory (STAR Lab) is the leading digital 
commerce and information security research lab. 

Public Relations: Barry Strauss, InterTrust, 408/222-6252, 
[email protected] 
Drew Lane, ACI, 415/923-1660, 
[email protected] 
Sales: William Jordan, InterTrust, 408-222-6100, 
[email protected] 
International: Douglas Armati, InterTrust, 44-1473-738-400, 
[email protected] 
Technology: David Van Wie, InterTrust, 408/222-6100, 
[email protected] 
Copyright (c) 1998 InterTrust Technologies Corporation. All rights 
reserved. InterTrust, Commerce Modeler, RightsWallet, DigiBox, and 
InterRights are trademarks of InterTrust Technologies Corporation which 
may or may not be registered in certain jurisdictions. All other brand 
or product names are trademarks or registered trademarks of their 
respective companies or organizations. 

     InterTrust Technologies Corp.
     Barry Strauss, 408/222-6252, [email protected]
     Alexander Communications
     Drew Lane, 415/923-1660, [email protected]

Newsbit furnished by:

A: NetShift Software Ltd & Daw Systems Ltd.
A: Hughenden Yard, Marlborough, Wilts,SN8 1LT, UK
T: +44 (0)1672 511 094
F: +44 (0)1672 511 078
E: [email protected]

Thanks Kinetic!

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