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Philips & Sony To Purchase Intertrust DRM Tech

tuxlove writes "Reuters is reporting that Philips and Sony Corp, the parents of the compact disc, teamed up on Wednesday to buy InterTrust Technologies for $453 million -- a deal expected to speed up copyright security for digital media. The acquisition by Philips Electronics and Sony of the leading U.S.-based holder of intellectual property in the field of 'digital rights management' technology is widely seen as a way to prevent Microsoft, which has been embroiled in a legal battle with InterTrust, from grabbing control of the potentially lucrative business. Philips and Sony, the electronics giants who introduced the CD format 20 years ago, said the deal would enable secure distribution of content as more films and music are sold over the Internet and other media in digital format."

5 of 186 comments (clear)

  1. If... by Anonymous Coward · · Score: 5, Insightful

    If their DRM is simply preventing people from illegally sharing or possessing copyrighted works, then I'm somewhat in favor of it.

    The slightest breech of my "rights" to make backups and view them on any device I wish ends that feeling.

  2. What does this mean for future digital media? by Bjarne+Bula · · Score: 5, Insightful

    So far, it seems that Philips has been on the side of consumers when it comes to copy-protection on CDs. The big question now is what effect their acquisition will have on their stance.

    More specifically, was their earlier stance just posturing until they could lay their hands on some "good" technology of their own, or will they continue to defend the CD standard?

    Now, I don't expect Philips to be in the game to befriend the consumers, so it might just be that they want to keep others from doing too much with the CD format before they (and Sony and their other usual bedfellows) can launch their New and Improved(tm) digital media with a DRM system of their own, to secure future income and sew up the market...

    Oh well, I pretty much decided to give up on buying music after BMG's announcement the other week. If they're so intent on actively trying to make it hard for me to use the music I pay for, I might as well just save me the money and trouble.

  3. Lucrative business? The gatekeeper returns! by Ogerman · · Score: 5, Insightful

    widely seen as a way to prevent Microsoft, which has been embroiled in a legal battle with InterTrust, from grabbing control of the potentially lucrative business

    Q.) Why exactly would hardware companies spend almost half a BILLION dollars on a company developing technology that makes products less useful to consumers? Why would they go out of their way to conform to Hollywood's interests? A.) To become the new gatekeepers of media of course! Of course it's a "lucrative business.." not a very ethical one... but hell, it's all about the money these days, right?

    Hopefully people will boycott this garbage and it'll go the way of the Divxsaurs. At very least we now have the beginnings of a new format war. Maybe competitors will crack each others DRM systems to prove them insecure and "leak" code through 14-year-old kids in northern europe. (:

    Strange times we live in. Vote with your dollars folks!!

  4. Re:Corrupt CDs by sconeu · · Score: 5, Insightful

    I haven't seen too much of that from Sony, just from Philips, and then only because CDDA on non-Red Book silver disks with music on them would be a trademark violation. Trademarks are "defend it or lose it", unlike other forms of IP.

    --
    General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  5. Philips & Sony vs Microsoft by Cheese+Cracker · · Score: 5, Insightful

    "Philips said the companies would start an open licensing program and would encourage content providers to use the technology, which can protect all digital formats, including CDs, MP3 and DVD."

    "Some analysts say Microsoft may lose if Philips and Sony are successful at promoting the InterTrust technology throughout the entertainment industry because Microsoft's technology, called "Palladium," would have a tougher time making inroads."

    The above says it all. It's all about battling Microsoft's Palladium. Of what I know, Philips and Sony haven't signed up for Palladium, and since they're big time players on the entertainment hardware market, they can afford to develop their own standard without having Microsoft involved in the equation.

    "All the major music labels, in particular BMG, Sony Music and Universal Music have been investing heavily in copy-proof technologies to protect their artists."

    It's not so much about protecting the artists as it is about protecting their companies. The music industry has been used to having a steady monetary growth each year until P2P was made popular among the general public. Now they won't make as much profit as they used to. What the artists actually gets is peanuts compared to what the record companies gets. The artists sell all their rights to the record companies, and these companies can continue to make money on their music even after the artist has disappeared from the charts. (eg. collection albums)