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SunnComm - Bomb or DRM Success Story?

pacopico writes "The Register has one of best tech feature stories done in a long time on SunnComm - the infamous Shift key problem DRM makers. The story charts the awesome path SunnComm took from being an Elvis impersonator company eventually to creating CD protection technology almost out of thin air. Great read!"

42 of 164 comments (clear)

  1. You gave us how much to make this? by MustardMan · · Score: 5, Funny

    You gave us how much money to make a DRM technology that's able to be over-ridden with a single key press?

    Well thank ya, thank ya very much

    Sincerely,

    SunnComm

    LADIES AND GENTLEMEN, SUNNCOMM HAS LEFT THE BUILDING

    1. Re:You gave us how much to make this? by Mazem · · Score: 2, Informative

      How is the parent post off-topic? First it criticises SunnComm's DRM, one topic described in TFA, with a sarcastic "letter".

      Then, it makes a joke referencing Elvis that is particularly pertinent since SunnComm used to be in the business of Elvis impersonators.

    2. Re:You gave us how much to make this? by ktulu1115 · · Score: 3, Funny

      Of course you also have to realize that the keypress would be a violation of the DMCA and punishable by law.

      --
      # fuser -v /dev/attention | grep work
      #
    3. Re:You gave us how much to make this? by Xentax · · Score: 4, Insightful

      Considering that the shift key is an OS feature - disable autoplay for *whatever* CD/DVD is being inserted - I (in my very personal opinion) don't think this could successfully be argued as copyright circumvention. After all, the shift-key-bypass predates the technology being "circumvented" using it...

      Xentax

      --
      You shouldn't verb words.
  2. Amazing story by Marxist+Hacker+42 · · Score: 4, Insightful

    Of Parasites taken over by Parasites- and searching for a business plan *after* creating the business and selling stock. Amazing that they were allowed to survive at all.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    1. Re:Amazing story by Gilmoure · · Score: 2, Insightful

      This CEO guy makes more money than me, right?

      Why the hell did I ever learn how to do something useful and helpful to others?

      --
      I drank what? -- Socrates
    2. Re:Amazing story by SydShamino · · Score: 2, Interesting

      You know a company is great that:

      1. Resizes your browser (overrides the nView desktop manager to maximize it across both monitors).

      2. Refuses to let you in without Flash.

      Eesh.

      --
      It doesn't hurt to be nice.
    3. Re:Amazing story by G-funk · · Score: 2, Informative

      Nope. Can't say I know what that's like. Switch to firefox. Javascript can't do a damn thing to my browser, except change images. It can't even change the status bar text.

      --
      Send lawyers, guns, and money!
  3. kudos to the register by NetMagi · · Score: 3, Insightful

    for getting them to respond to this. . .

    what's scary though is that it's things like this that scare ppl from any sort of .com of technology type investing.

    As a shareholder, I'd be mad too to find out you can defeat the copy protection by holding down the shift key. That's ABSURD!

    1. Re:kudos to the register by Rude+Turnip · · Score: 5, Insightful

      "Hey, I think I'll invest in a company (Suncomm) that tries to install software behind the user's back and cripple their computer!"

      Anyone that invests in such a company deserves to lose the shirt off their back.

  4. Re:FreeiPods.com closing registration in Oct. !!! by eutychus_awakes · · Score: 2, Funny

    Does it come with a shift-key?

    --
    This sig is a test. If this had been an actual sig, you would be reading something quite a bit wittier than this now.
  5. Re:Talk about bad timing! by Qrlx · · Score: 3, Funny

    Maybe their plan for downtime reads like this:

    In the event of a slashdotting, the plan is to take down the servers.

  6. Shift Key, Magic Marker, Bic Pens... by Anonymous Coward · · Score: 5, Insightful

    It's amazing how apt Leia's "the more you tighten your grip..." prediction is coming true for DRM: That DRM systems don't work.

    1. Re:Shift Key, Magic Marker, Bic Pens... by Anonymous Coward · · Score: 2, Insightful

      Bzzt. Nice try. DRM systems DO work. You find very few Joe Averages copying videotapes, due to Macrovision. Also, its very hard for one who doesn't want to take risks with fly-by-night Taiwanese firms to find a de-Macrovision device.

      Also, though DVD may be cracked, as well as FairPlay, there are absolutely no cracks for WMA, OpenMG, or other formats -- Sony and Microsoft have done their job well.

    2. Re:Shift Key, Magic Marker, Bic Pens... by LnxAddct · · Score: 2, Insightful

      I just think no one wants to use those formats. I don't believe I've *ever* seen a WMA or OpenMG file, although I know they exist. Just out of curiosity, anyone know how these formats encrypt or where I can get specs for it? Regardless, anyone with a decent sound setup can just loop the analog out back in and record, a little time consuming but it only needs to be done once to be enjoyed by millions.
      Regards,
      Steve
      P.S. Doesn't real claim intercompatibility with WMA? Not sure if they licensed it or reverse engineered it like they did with Apple.

    3. Re:Shift Key, Magic Marker, Bic Pens... by Hatta · · Score: 3, Insightful

      Bzzt. Nice try. DRM systems DO work. You find very few Joe Averages copying videotapes, due to Macrovision. Also, its very hard for one who doesn't want to take risks with fly-by-night Taiwanese firms to find a de-Macrovision device.

      Thing is, in this digital age, it only takes one person to crack the DRM scheme once, and the unprotected content can be copied perfectly around the world.

      --
      Give me Classic Slashdot or give me death!
  7. Holy conspiracy theories by BobTheLawyer · · Score: 4, Insightful

    Jacobs' theory that the complaining Internet posters are motivated by making money from shorting SunnComm's stock is nonsense - it's very difficult to sell "short" (i.e. bet that a share goes down) when the share is obscure and rarely traded.

    A professional trader *might* be able to find someone willing to go "long" (take the other side of the bet) but it's pretty unlikely. Joe Public has no chance.

    1. Re:Holy conspiracy theories by jyoull · · Score: 3, Informative

      on NASDAQ there is no requirement that a trader take a position as counterparty. Pink sheets, good luck finding anyone to trade with.

      Listed stocks on the NYSE do have specialists who ensure order flow and who eat unwanted shares, as you state. This is not the case in NASDAQ.

      This reference will help explain things:
      Investopedia definition of market makers and specialists.

      The line you're looking for is the 4th "role" of an NYSE specialist, acting as "Principal".

      I disagree with the conclusion of the article that there is not much difference between a NASDAQ market maker and a NYSE specialist. The specialist is actually in control of the market for a stock, and in exchange for that monopoly, he is obligated to trade in the stock as necessary to keep things moving. A NASDAQ market maker is in open competition with other market makers and does not have a monopoly.

  8. Comment removed by account_deleted · · Score: 5, Insightful

    Comment removed based on user account deletion

  9. Focus people! FOCUS!!! by Ced_Ex · · Score: 3, Insightful

    This business doesn't seem to have any idea as to what it really wants to do. The CEO seems like the type of person that could be easily influenced by his surroundings.

    *CEO walking down street*
    "Hmm... I think I'll have a hot dog. Aren't they also called tube steaks? Steak! Maybe I'll run a steak restaurant. I'll need meat. But I need a butcher to cut it. Butcher shop..."

    This guy just doesn't have any focus. If he just stuck to one plan and worked at it, he'd actually have a legitimate business rather than a mirage.

    How on earth does a business that lives off shams stay afloat for so long?!?

    --
    Live forever, or die trying.
  10. ...brain hurts.... by genner · · Score: 2, Funny

    Did anyone else get the picture of a bunch of elvis impersonators standing around a board room coming up with the idea of shift key drm.

  11. I'd say it failed... by el-spectre · · Score: 4, Funny

    given that I'm listening to a mp3 rip of Velvet Revolver right now...

    --
    "Faith: Belief without evidence in what is told by one who speaks without knowledge, of things without parallel." - A.B.
  12. "protection" by latroM · · Score: 2, Interesting

    CD protection technology almost out of thin air...

    From whom does this "protection" "protect" the CD?

  13. SunnComm have responded by doodlelogic · · Score: 4, Insightful

    And they are not happy.

    I don't know what American libel laws are like, but here in Britain, what was said about the Register's journalistic practices would, if unprovable, cause SunnComm some trouble...

    'Its funny. No one in the legitimate news community would touch the OurStreet dirt package with a 10-foot pole. Theyve been trying to find such a dupe for a year. Our Oregon friend from OurStreet must be jumping up and down with glee that finally he found his "patsy."'

    ' Mr. Vance proceeded to mischaracterize the source purposely in the article even after being told otherwise. In other words, Mr. Vance purposely made a decision to carry the water for OurStreet.Com even after knowing of the possibility that his source had lied to him about his standing.'

    'he didnt bother to fact-check his single main source'

    Needless to say, from a regular reader of the Register's perspective, these allegations seem extreme. However, I must say, the SunnComm director is very reassuring: "SunnComm is NOT a get rich quick scheme" - a Nigerian friend of mine told me the same thing the other week.

    1. Re:SunnComm have responded by kmmatthews · · Score: 2, Informative

      HAHA, thier reply makes for a more amusing story than the original, with classics like "The author did just what Dan Rather and CBS did when they took the bogus paperwork from Lt. Col. whathisname." and "jumping up and down with glee that finally he found his "patsy.""

      --
      feh. stuff.
  14. DRM? by The-Bus · · Score: 4, Interesting

    I have yet to find any DRM which (even on Windows!) can circumvent the following:

    1. Turn off auto-run on all CD drives.
    2. While the computer is off, put in a CD in the drive.
    3. Upon boot, retrieve the music you paid for using a program like EAC.

    Most DRM relies on #1 to begin with.

    Now once Longhorn comes about, that's a different story (for Windows users).

    --

    Small potatoes make the steak look bigger.

    1. Re:DRM? by Malc · · Score: 4, Informative

      And for those who want to disable auto run in the most effective manner, toggle the AutoRun REG_DWORD value to 0 in this key:

      HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Serv ic es\Cdrom

      Then reboot.

    2. Re:DRM? by csteinle · · Score: 2, Informative

      What you want is TweakUI

  15. Going public via a reverse merger by Animats · · Score: 3, Informative
    Going public via a reverse merger is not that uncommon. It's usually loser companies that do it.

    A typical comment on reverse mergers: "It's a perfect setup for a 'pump and dump' stock scam. Take a stock that has been trading for pennies, merge it into a business that has at least the facade of respectability and a presence in a market that is perceived as hot, hype like hell, sell off as many of your shares as possible, and make a run for the border before the price drops like a rock. There have been enough of these to give the whole approach a dubious aura."

    A reverse merger, unlike an initial public offering, doesn't raise any money for the company. It costs money, and at the end, you have a publicly traded stock nobody cares about. Which you then have to hype. So they are an inherently suspicious transaction.

    Here's an example of a reverse merger involving a company claiming to be engaged in gold mining, biotech, and casino gambling. Reverse mergers tend to be at that level of flakeyness.

  16. Why companies speak through prof. PR reps by mcmonkey · · Score: 4, Funny
    "I came into the company like Harvey Keitel came into Pulp Fiction - to fix the deal," Jacobs said.

    Um...didn't Harvey Keitel come into Pulp Fiction to hide the bodies and help the gangsters get away with the loot?

  17. Re:Not About DRM... by MindStalker · · Score: 2, Funny

    Yes, but the article is 5 pages long. Do you really expect the average slashdotter to get through the first 2 paragraphs.

  18. Re:Focus people! FOCUS!!! by Agilis · · Score: 2, Interesting

    Well it breaks down like this for my store example, milelage may vary depending on industry and size.

    The stores do generate revenue through selling inventory. It's not clearing the shelves, but every day a certain amount of goods are sold, and the money first goes to the employee salaries, 'cause without them we might as well pack up now.

    Now if you have no product, you'd have to get outside investment (read: suckers) to keep you afloat. Or you buy/sell parts of businesses.

    The really big reason why the creditors don't ram your door down probably comes down to the managers negotiation skills, and power relationships.

    The owner/manager I worked for had a heck of a sharp tongue and could deal with all sorts of angry collections people, if he decided to actually take their calls through the secretary filter. Small suppliers need every account they can get and he really takes advantage of their lack of power
    Okay fine, if you want, you can bring in the lawyers. But that'll take months to go through the courts, and alot of times the wholesaler just doesn't want to bother and will settle for a fraction of the bill. The business has had time to save up some cash to pay off a settlement so it's clear then.
    Now, if you're a large important supplier with hot products, say, Nike, you'll always get paid. Power, again.

    This is probably why collection agencies are actually very useful to wholesalers, having 20 suppliers bound to not ship things to you if you get too far behind on the payments gathers up some negotiation power back to the suppliers.

  19. Shills are great.! by paul99se · · Score: 2, Funny
    From http://www.sunncomm.com/asktheprez/asktheprez.asp


    Q: Peter,
    Last weekend my wife was copying CDs from a friend. She was successful on all of her choices except for Afterglow by Sara M. She did not realize that we were invested in the company that prevented her from burning that CD. After I told her that we had a large position in Sunncomm, she was excited about the technology.
    Peter, when will the shareholders be rewarded for their patients with Sunncomm? (9/7/2004 8:44:35 AM)

    A: Hey, wait a minute. Thats a "when will the share price go up" question in disguise. I dont know for certain, but I believe that as the company continues to add new business and focuses on improving our technology, our value in the marketplace will continue to increase overall. We are working on making it a great year. Lets see how it goes.

    Best regards,

    Peter


    Peter, we the countless masses love your stupendously powerful DRM! We cannot help but spontaneously comment on your awesomeness and the fantastic potential of your company!

    Here's to double digit (cents) per share by the end of the year!

    Go team go!
  20. Changed their ticker by fdiskne1 · · Score: 3, Funny

    Don't forget that Sunncomm also changed their ticker symbol. When the Princeton student lawsuit was filed, their ticker symbol was STEH. Since then, they've changed their symbol to the more appropriate SCMI.

    If you don't get it, pronounce it.

    --
    But why is the rum gone?
  21. [applauds] by Anonymous Coward · · Score: 2, Insightful

    Mod parent up.

    Couldn't have said it better myself. If your responsibility is to make money, by hook or by crook, you're living a perverted form of capitalism. Capitalism is supposed to reward people for innovating and producing--not to reward people who pretend to produce and do it well. If your real goal is innovation, you will make your money.

  22. Looks like Macrovision will have one soon... by djaj · · Score: 3, Informative

    Check out their report on Macrovision CDS-300 version 7 beta.

    --

    Your mileage may vary, but mine is constant.

  23. Re:Not About DRM... by swb · · Score: 3, Insightful

    That's what scares me the most about "business" anymore. It's no longer about wanting to run an organization, create or sell a compelling product. It's all about finding and using gimmicks to ultimately make yourself wealthy, whether those gimmicks are patents, copyrights, or semi-fraudulent business practices.

    I think a lot of our economy is built this way, and I think that it's largely what they've been teaching in business schools -- outsource everything but your core marketing staff. It makes you a more "pure" businessman.

  24. Re:Not About DRM... by Grishnakh · · Score: 4, Interesting

    So if you live in a country where it's legal to torture and murder certain people, and your employer tells you to do so, would you do it? Sounds like you would.

    Legal doesn't mean ethical.

    I don't care what someone's "job" is, if their job requires them to do something unethical, then their only way of not being complete scum is to resign their job. The investors would be better off losing their money, so they'll learn not to invest in stupid scams again. Rewarding this behavior does not result in a healthy society.

  25. Success story by dtfinch · · Score: 2, Insightful

    They made a fortune peddling their snake oil resulting from a minimal software development investment. If they don't lose it all in class action suits I'd consider it a success (for them).

  26. Re:Company's disclaimer vanishes in a Flash by fdiskne1 · · Score: 3, Informative

    Here it is:

    Important Notice to Sunncomm Shareholders and Prospective Shareholders

    SunnComm International, Inc. is a Phoenix, AZ company whose stock is publicly traded in the Over-the-Counter (OTC) market under the symbol SCMI. Our 4-year old company is currently in the development stage of its life cycle and, to date, has only just begun earning revenues from sales of its CD copy magement products.

    It is the intention of management to remain a non-reporting company listed on the "The Pink Sheets" until such time as the company reports significant sales of its technology. It is within the corporation's legal rights to elect this option. However, this means that you, the investor or interest-holder, will not be afforded public access to regular company audits and therefore you must solely rely on the company's press releases, news stories, or other publicly available information.

    Not having access to audit detail or other significant reporting dynamics can put SunnComm shareholders or interest-holders, at a significant disadvantage from a risk standpoint. Due to SunnComm's current, legal, non-disclosure status, your investment in SunnComm may carry with it an even higher degree of risk than that of other publicly traded companies which are currently fully reporting.

    Because of our non-reporting status, SunnComm's management feels you need to understand these very important facts prior to making a decision to invest in the company's shares, and you should also be totally aware that you run the risk of losing your entire investment should you make the decision to purchaseshares in SunnComm.

    If you have additinal questions regarding this notice or anything you may read on SunnComm's website, we urge you to contact the company directly.

    Thank you for giving me this moment of your time. Please click the button below to acknowledge reading the above and to access The SunnComm Website.

    Thanks for stopping by,

    [signed by Peter H. Jacobs]

    There is an html form button below that reads "I have read the above statement, take me to SunnComm International".

    In other words, you will believe what we tell you and if you buy our stock, tough noogies!

    --
    But why is the rum gone?
  27. Philips & the CD tradmark? by CrazyWingman · · Score: 2, Interesting

    Hey - does anyone know whatever happened to the rumor about Philips twisting arms over the use of the "CD-ROM" logo. I remember hearing that Philips had invented the CD and companies had to pay to put that little icon on the jewel case that says "CD-ROM". Philips was supposed to be looking in to not allowing people to put that logo on their CD if it was copy protected in a certain way, since the CD no longer complied to the spec. Anyone know anything about this?

  28. Re:Not About DRM... by Al+Dimond · · Score: 2, Insightful

    "Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation." - John Keynes (1936)

    (although he meant that in a macroeconomic sense and this is the case of one company, I think it's still apt.)