Technology to be Applied to Microsoft's Educational, Games, and Personal Finance Software
PC CD-ROM Titles
SUNNYVALE, Calif.--(ENTERTAINMENT WIRE)--June 2, 1999--
Macrovision Corporation announced today that Microsoft Corporation has signed a two-year
agreement to use Macrovision's SafeDisc(TM) PC CD-ROM copy protection. Under the
agreement, Microsoft will use SafeDisc on a wide variety of educational, games, and
personal finance software distributed worldwide.
"We were prompted to consider a copy protection
solution because of ongoing losses incurred by software distributors from returns on
software that is copied using CD-ROM recordable devices," said Bill Smith, product unit
manager at Microsoft. "The Home and Retail Division has run SafeDisc through an
exhaustive evaluation process and has found that it will be the most effective way to
protect those who legally try to sell software from the impacts of software piracy."
The total estimated value of unauthorized copies of PC
CD-ROMs in consumer households is estimated at almost $1 billion according to a study
sponsored by Macrovision. The study, which was conducted by San Mateo, CA-based Merrill
Research & Associates, estimates that based on survey responses, consumers have 30
million unauthorized CD-ROM copies in their inventory, and that over half of these copies
would have displaced interactive software purchases.
"The collective engineering capability, worldwide
technical support, relationship with replicators who support our other technologies, and
substantial financial resources of the Macrovision/C-Dilla partnership uniquely allows us
to support Microsoft's Home and Retail Division and its numerous replicators and OEMs
worldwide," said Brian Dunn, vice president of computer software copy protection at
Macrovision Corporation. "In addition, Microsoft has been of great assistance in
enabling us to develop a Windows-compliant SafeDisc solution."
The SafeDisc technology, which is licensed at 28
replicators worldwide, is a software-based solution that does not require any changes to
standard PC or CD-ROM hardware. It is comprised of both an authenticating digital
signature embedded on the disc, as well as a multilayered encrypted wrapper that secures
the CD-ROM content. The digital signature, which cannot be copied by CD recorders, is
added to each original disc during the mastering/replication process. When a user inserts
an original disc in a CD-ROM drive, the authentication software reads the digital
signature, allowing the program to be decrypted and run normally. If an unauthorized copy
is loaded, the authentication software will not be able to find the digital signature, and
the copy will not run. The technology is licensed directly to interactive software
publishers, and to mastering and replication facilities who are able to offer the
technology to their software publishing clients.
SafeDisc, a collaboration between Macrovision and C-Dilla,
UK Ltd., represents Macrovision's first copy protection product for the interactive
software market. Macrovision is best known for its videocassette copy protection
technology, which has been applied to over two billion videocassettes over the past
decade. C-Dilla is best known for its rights management software for high value-added
information and software publishers.
About C-Dilla Ltd.
C-Dilla, a privately held 35-person UK company founded in
1991, is a recognized leader in rights management software for high value-added
information and software publishers. The company's current line of security and rights
management products are marketed worldwide to over 150 software and data publishers such
as Autodesk, Lotus Development UK, Pitney Bowes, British Telecom, and the Financial Times.
C-Dilla's CD-ROM based rights management software includes multi-track unlocking
capability, "Try before you Buy," and metered usage capability. C-Dilla also markets
secure products for the Internet and the electronic software distribution market. C-Dilla
opened a San Francisco Bay Area sales and support office in 1998, which distributes its
rights management software product line to the North American market.
Macrovision Corporation develops and markets technologies
to prevent the illicit duplication, reception or use of video and audio programs and
computer software. The Company provides its products and services primarily to the home
video, consumer multimedia software, pay-per-view, cable, satellite, and video security
markets. Macrovision has its headquarters in Sunnyvale, California with subsidiaries in
London and Tokyo.
All statements contained herein, as well as oral
statements that may be made by the Company or by officers, directors or employees of the
Company acting on the Company's behalf, that are not statements of historical fact,
constitute "forward-looking statements" and are made pursuant to the Safe-Harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements including the intention of
a customer to use the Company's products in the future involve known and unknown risks,
uncertainties and other factors that could cause the actual results of the Company to be
materially different from the historical results or from any future results expressed or
implied by such forward-looking statements. Such risks and uncertainties are outlined in
the Company's Registration statement on Form S-3 and in its reports on Form 10QSB and Form
10KSB. The Company is not obligated to revise or update any forward-looking statements in
order to reflect events or circumstances that may arise after the date of this release.
SafeDisc is a trademark of Macrovision Corporation and
C-Dilla Ltd. Other product and company names herein may be trademarks of their respective
Note to Editors: Additional background information on
Macrovision Corporation can be obtained from
Hector Marinez, 408/743-8429