enforcement

On he heels of last weeks’ announcement of new enforcement initiatives, comes this weeks reports of actions executed according to the plan. From a sound stage in Hollywood ( Burbank actually) ICE Assistant Secretary John Morton told a press conference “The American film and television business is a bed-rock of our economy,” he said.
And to protect the 2.5 million jobs in it, nine file sharing Web sites were shut down, and prosecution initiatived.
Morton promised more- ” “This will be a sustained effort,” Morton said. “We’ll be at this week after week after week.”
Stay tuned!
Meanwhile the field of steganography, the basis of watermarking including USVO’s products, received a great deal of attention in the news today as the recently apprehended Russian “foreign agents” were said to be using it in concealment of information that they were transferring to Russian officials.
And while steganography has been around a long time, don’t take our word that this is high technology. As International Spy Museum Director Peter Earnest told Voice of America “That’s pretty slick stuff steganography, which is putting an image on website or something but embedded in there is a coded message or text. That’s pretty slick and that’s up-to-date.”

Just in case you haven’t noticed, today USVO was able to announce its extension and expansion of ties to one of the major distribution companies. It the one whose name rhymes with ‘box’. Turns out, and it is totally understandable if you haven’t noticed this either, that this company rarely makes what are called ‘vendor’ announcements. The last one in the IT sector was two and a half years ago when they allowed USVO to announce the initial contract. In an extraordinarily generous moment, they even let us put their logo on the release. A Google search of business news services turns up a great number of press releases from this company-so you know that their in house PR organs are functioning.

But the vast majority of its communications and outreach function only serves to promote its own products. There was, as this contract was finalized and negotiated, push back about how this announcement might divert attention from the upcoming blockbuster holiday release of the Jim Cameron film “Avatar”. Given the multi-million dollar advertising in all media and striking imagery there in, it isn’t clear how many of you small stock press release aficionados would now not be going to the theaters in the next month to see the film that some consider the make or break test of 3D theatrical exhibition as the salvation of the film industry. Really. The film, probably the most expensive production ever mounted, even allowing for inflation, is so important that it wouldn’t surprise if Rupert Murdoch himself asked the White House to go to China some other week.

So thanks to those inside the organization that see the value of telling the world that their organization has been and will be protecting their products and asserting the rights of content distributors with sophisticated state of the art technology integrated with proactive enforcement strategy. We here at USVO appreciate their courage in the face of all manner of opposition and resistance. Thanks for being willing to shine just a little of the light from the mountaintop on our humble enterprise.

As a measure of that appreciation, there will be no direct mention of the company here. See the announcement on our news page. Please go search for any such news from any other watermarking company for a direct relationship with a major content company.

Yesterday presented another set of circumstances that suggest, if you will indulge us for the moment, that USVO is part and parcel of what is happening in the world.

You might not have noticed that The US Open began play at Bethpage in New York. Rain shortened the day, and a bunch of unknowns led. Two members of the USVO team hit the links yesterday as well, playing in a relatively unknown charity tourney for the Providence St. Joseph Burbank Hospital Foundation. The event is so unknown that the hospital has no mention of it on its website even though the event raised over $300,000 in a day. Providence is the home of the Roy & Patricia Disney Family Cancer Center, and the Disney company features prominently in the production of the tournament. Operational staff from Disney, Universal and Warner Bros studios- the half of the big six studios based in the valley that also houses the two hospitals that are the beneficiaries, populate the organizing committees and many of the foursomes.
It was a great place to enjoy the sunshine, compete in a friendly match of skills ( or lack thereof) and gauge the thinking of some of the business middle management.

What can be reported is that people are interested in new ideas, especially about increasing sales. Getting new ideas in front of this crowd costs money, and then once they are on board, requires the ability to execute on those ideas. While USVO wasn’t in a position to use the golf event to push our agenda, the good news is that our competitors weren’t even there, much less sponsoring a hole, or a prize. We were the ones taking the opportunity to shift people’s focus from their hooks and slices to their digital delivery strategy and concerns.

Another item you might not have noticed yesterday, while you are doing what constitutes your daily business, was the announcement of a court verdict of $1.92 million against a single mother of four in Minneapolis for downloading 24 songs. The RIAA, which spearheaded the suit, has provided a great demonstration of what we here as USVO have been stating about the issue. In winning the suit, the RIAA has created a lose/lose result.
Headlines abound, and analysis make it clear that in winning, the record industry has cemented it’s reputation as the least sensible sector of the digital economy. While the RIAA spokespeople express satisfaction with the verdict, the revenues of the members’ music units continue to slide.

The absurdity of prosecuting a single mother of four for downloading, while ignoring those that actually facilitate and exploit that activity for material gain seems to be lost on the RIAA. While it has promised to not sue any individuals, thousands of individuals have received the lawsuits that are the method of message delivery to the public that while listening to music for free on the radio is ok, copying that music and sharing it with others isn’t.

It also brings out those who wish to challenge the constitutionality of the suit and award.

While out on the course, we discussed these and other important issues. The world is in need, dire need, of a proactive and credible way for rights holders to brave the digital distribution world. USVO is in need of the means to deliver it. That’s what we are working on everyday.

Events of the last week prevented my posting a more timely comment upon what has become the most visible violation of copyright in some time- the online availability of the Fox film “Wolverine”. As CNN noted in their article “In digital age, can movie piracy be stopped?” this is an especially troubling example for a business further challenged by the stalled economy and ownership more than ever concerned with the bottom line.

It is also troubling to a leadership which recognizes that the motion picture industry generates the single largest positive contribution to the nation’s balance of trade, as was discussed in a Congressional Judicial Committee hearing earlier this year. “”During our hearing in Los Angeles, director Steven Soderbergh said that in 2007, the entertainment industry generated a trade surplus of $13.6 billion,” committee chair US Congressman Howard Berman added. “Imagine what those numbers would be if we could rein in piracy.”

As any follower of USVO already knows the answer to CNN’s question about stopping piracy. First of all, it’s the wrong question. As noted in an earlier CNN article, a more immediate and relevant query is what is the harm to the film’s release? “Whether the leaked video will eventually hurt the film’s box office earnings “is very difficult to discern,” according to CNN’s source.”

“Wolverine” opened with $85.1 million in box office, first among movies that weekend. It ranked first every day since opening until “Star Trek” opened this last weekend and now has over $200million in global receipts. Did more or less X-men fans go to theaters based upon what they heard or saw of the ‘incomplete” version? Can #1 ranked $85million plus weekend be considered a damaged result?

The motion picture industry can’t tell, and would have a hard time pleading its case as it has enjoyed, especially in these times, a good year so far. And ultimately that is the question that both the industry and policy leaders need to examine- how to generate more business. Piracy existed before today’s BitTorrent, or ubiquitous processing and connections made it available to all. And the industry always found ways to be profitable regardless. It isn’t that piracy isn’t important, costly in many ways or full of individual and corporate ethical concerns. For the industry it is that the threat of digital piracy has stopped the world’s content distribution leaders from using innovative technology to engage and profit in new markets and channels to reach customers.

The good news for USVO is the mention of forensic watermarking in a number of places including the CNN initial report. In a Wired report, watermarking is mentioned as the reason Fox has confidence in catching the person who put their product outside the licensed system. USVO is cited as Fox’s vendor. Currently USVO’s product is used by the Home Entertainment unit for business to business marketing of finished product.

Overall, the expanded visibility of piracy, and its many impacts on a leading US industry sector, is good news for USVO. We find our enforcement and exploration of new business message resonating with policy leaders. We continue to field queries from business unit managers in the content distribution industry. We continue to seek the partners that will enable us to answer those queries with new business.

Although Jon Stewart of The Daily Show, asserts that copyright infringers will have to give up the word to those modern seafaring criminals off the Horn of Africa, today’s news can still assert that copyright Pirates have been convicted. Four people associated with the site The Pirate Bay, were found guilty as announced today in Swedish courts.
The trial was considered of sufficient importance that Swedish television broadcast the entire proceeding online, a first.
While the defendants were sentenced to one year of jail and over $3.6million in fines, they are expected to appeal the verdict.