1

2 Our Business Digital Rights Management (DRM) Application Service Provider (ASP) offering a component-based DRM solution to content providers. Mission critical participant in the “content delivery ecosystem” ensuring usage rights enforcement across data networks. Integrator of “best of breed” DRM technology into a scalable, 24 / 7, transaction processing platform. Adobe, Glassbook, Microsoft, IBM Content Management, e-Commerce, Digital Usage Rights Issuance, Customer Support Digital Rights Management (DRM) Application Service Provider (ASP) offering a component-based DRM solution to content providers. Mission critical participant in the “content delivery ecosystem” ensuring usage rights enforcement across data networks. Integrator of “best of breed” DRM technology into a scalable, 24 / 7, transaction processing platform. Adobe, Glassbook, Microsoft, IBM Content Management, e-Commerce, Digital Usage Rights Issuance, Customer Support

3 Our Background Founded in 1996 as a spin-off of Softbank Services Group Transaction processing and customer service experts Currently 165 employees Four divisions focused on the protection of intellectual property in digital form and the application of Digital Rights Management (DRM) technology in support of commerce, learning and entertainment. Founded in 1996 as a spin-off of Softbank Services Group Transaction processing and customer service experts Currently 165 employees Four divisions focused on the protection of intellectual property in digital form and the application of Digital Rights Management (DRM) technology in support of commerce, learning and entertainment.

4 What is DRM? Content Protection – this is the “enabler” Content Access – what are the usage rights? View, Print, Save, Play, Expire Supporting Digital “Fair Use” – multiple copies on multiple devices, mobile rights Enabling Business Models – how many different ways to you grant the “right to view”? – Free preview; expire at end of semester; pay-per- view; individual subscriptions; seat license models Transaction Support – what are the business relationships? Support the value chain – publisher, retailer, university, bookstore, course tool provider Content Protection – this is the “enabler” Content Access – what are the usage rights? View, Print, Save, Play, Expire Supporting Digital “Fair Use” – multiple copies on multiple devices, mobile rights Enabling Business Models – how many different ways to you grant the “right to view”? – Free preview; expire at end of semester; pay-per- view; individual subscriptions; seat license models Transaction Support – what are the business relationships? Support the value chain – publisher, retailer, university, bookstore, course tool provider

5 Sample Customer List Publishing Content Providers: Bedford, Freeman and Worth Publishing Group Bell & Howell Information and Learning booktech.com Harcourt College Publishers Houghton Mifflin McGraw-Hill Pro Book Group Pearson Education Canada WebCT John Wiley and Sons, Inc. Wolters Kluwer / CCH Publishing Content Providers: Bedford, Freeman and Worth Publishing Group Bell & Howell Information and Learning booktech.com Harcourt College Publishers Houghton Mifflin McGraw-Hill Pro Book Group Pearson Education Canada WebCT John Wiley and Sons, Inc. Wolters Kluwer / CCH Entertainment Content Providers: Sony BMG Entertainment Artists Direct PepsiStuff.com (Pepsi / Sony / Yahoo) Entertainment Content Providers: Sony BMG Entertainment Artists Direct PepsiStuff.com (Pepsi / Sony / Yahoo)

6 Use Cases Electronic Course Materials Secure, downloadable content Entire text or selected chapters On-demand, “need-to-know” information Custom-built Course Materials Flexible content selection by faculty Assembled and made available digitally, online Tailored for the specific course Usage Auditing What did the student consume and when? Limit unauthorized content pass-along Electronic Course Materials Secure, downloadable content Entire text or selected chapters On-demand, “need-to-know” information Custom-built Course Materials Flexible content selection by faculty Assembled and made available digitally, online Tailored for the specific course Usage Auditing What did the student consume and when? Limit unauthorized content pass-along

7 Use Cases Faculty / University-published Course Materials Limit access to a specific body of students Enable distribution through trusted partners License the Best Content Content providers are more apt to provide a complete work in digital form if protected by DRM technology Opportunities exist for mixed-media applications: Text and music Text and video Text and spoken word audio Faculty / University-published Course Materials Limit access to a specific body of students Enable distribution through trusted partners License the Best Content Content providers are more apt to provide a complete work in digital form if protected by DRM technology Opportunities exist for mixed-media applications: Text and music Text and video Text and spoken word audio

8