1. April 13, 2004 Not For Further Dissemination 1 Verimatrix / Siemens Watermarking Technology Application A presentation to the CPTWG

2. April 13, 2004 Not For Further Dissemination 2 Verimatrix in partnership with Siemens ICN is able to provide a video watermarking solution for the ‘analog hole’ based upon technology developed initially by the Fraunhofer Institute and licensed by Verimatrix.

3. April 13, 2004 Not For Further Dissemination 3 Applied to the Analog Hole, the solution is:  a novel video watermarking technology application  highly viable as a video watermark: Invisible – conveys CCI Extremely reliable and robust Multi-layered for excellent security Highly resistant against sophisticated attack. Economic for inclusion in low-cost codec chips for CE and IT devices Overview Intended for use in broadcast, cable, satellite, and fixed media applications

4. April 13, 2004 Not For Further Dissemination 4 Platforms with Analog outputs Device Cable Satellite DVD Player Internet VCR WM Detector Analog Video with Watermark Digital Recorder DVD R/RW Copy rules obeyed Copy rules obeyed Other A/D converters: DTV, PC, DVR, … How it works Analog to Digital >> WM Detector

5. April 13, 2004 Not For Further Dissemination 5 StateActionRedistribution “Copy Never”Copy not allowedNot allowed “Copy Once”One Copy allowedNot allowed “Do Not Play”Copy not permitted, display only through theatrical projector Not allowed “Copy Freely”Encrypted copy allowedNot allowed CCI Primary States

6. April 13, 2004 Not For Further Dissemination 6 Intellectual Property  Patents: –US: # 6,359,985 (with the priority date on Jun 16, 1995). This patent covers a set of digital watermarking methods, including a method for watermarking color or grayscale images or videos by slightly modifying coefficients in frequency representation (particularly in DCT domain) of digital data. –Europe: EP 879535B1, DE 195 219 69 C1 –Pending in Japan, Canada, … (WO 97/00578 A1) –Backed by Legal Opinions

7. April 13, 2004 Not For Further Dissemination 7 Technical Information  Frequency-based (DCT-based) perceptual modeling for best invisibility  Tightly-bound with the content of digital data cannot be lifted  Securely embedded multiple layer security  Watermark survives all kinds of video processing typically used in a professional environment: copying, editing, further compression stages, logo insertion, or conversion to the analog domain, discoverable in Digital to Digital transcoding.

8. April 13, 2004 Not For Further Dissemination 8 MPEG Encoder Overview Pre- processing Input Video Motion Estimation DCTQuantization Variable Length Coding MPEG Video Output Example of standard MPEG encoder

9. April 13, 2004 Not For Further Dissemination 9 MPEG Encoder with Watermark Insertion Pre- processing Input Video Motion Estimation DCTQuantization Variable Length Coding MPEG Video Output Example of standard MPEG encoder with Watermark Inserter W E A M T B E R D M D A E R R K

10. April 13, 2004 Not For Further Dissemination 10 Position Sequence Generator Watermark Embedding System Watermark Information (Payload) Watermarked Data Original Data Secret Key Positions Block- based DCT Block- based IDCT Watermark Embedding

11. April 13, 2004 Not For Further Dissemination 11 Watermark insertion using DCT coefficients 212650031278500 0002447216170 00000000 00000000 00000000 00000000 00000000 00000000 DCT Coefficients (post Quantization) 212650031278500 0002447218170 00000000 00000000 00000000 00000000 00000000 00000000 DCT Coefficients (post Watermarking) From the input DCT coefficients the Ratio of the highlighted DCT values will be used to add a watermark bit For the bit being added - that the ratio of the two DCT values must be set such that the first bit is larger than the second bit. Meaning the bit value of 16 must be changed to be larger than 17. Depending on the perceptual model the value 17 could have been changed to 15 to establish the correct ratio. W E A M T B E R D M D A E R R K

12. April 13, 2004 Not For Further Dissemination 12 212650031278500 0002447218170 00000000 00000000 00000000 00000000 00000000 00000000 DCT Coefficients (post inverse quantization) DETECTORDETECTOR Extracted watermark payload bits is based on the ratio of the two highlighted DCT coefficients Watermark detection using DCT coefficients

13. April 13, 2004 Not For Further Dissemination 13 MPEG Decoder Overview Variable Length Decoding MPEG Input Inverse Quantization IDCT Post Processing Output Video Example of standard MPEG decoder

14. April 13, 2004 Not For Further Dissemination 14 MPEG Decoder with Watermark Detector Variable Length Decoding MPEG Input Inverse Quantization IDCT Post Processing Output Video Example of standard MPEG decoder with Watermark Detector W D A E T E R C M T A O R R K

15. April 13, 2004 Not For Further Dissemination 15 Feature Summary  Watermarking can occur in DCT-based compressed video (MPEG1, MPEG2, MPEG4, H.264, WM9, other)  Detection in both compressed or non-compressed video  Watermarking each frame (may partially watermark P- or B- frames if direct watermarking in compressed data required)  Support for all MPEG1 and MPEG2 profiles: MP@ML, 4:2:2P@ML, and MP@HL, other  The MPEG-2 video materials can be: –long GOP or I-frame only –variable (VBR) or constant (CBR) bit rates –Program Streams or Transport Streams –16:9 and 4:3 aspect ratios supported

16. April 13, 2004 Not For Further Dissemination 16 Feature Summary (cont.)  Very low false positive rate is achieved by aggregating watermark signals from video frames (in time domain)  Robust against, for example: D/A, A/D, and VHS conversion Down to 200K bps Divx compression Format conversion (PAL NTSC) Scaling, shifting and cropping Low-pass filtering Noise addition  Invisibility: Passed several tests by professional independent organizations

17. April 13, 2004 Not For Further Dissemination 17 Feature Summary (cont.)  Any bit rates from 500 Kbps (MPEG-4) up to 50 Mbps (MPEG-2, 4:2:2 profile @ main level)  High Level coding capabilities (HD)  PAL and NTSC supported  Codec independent

18. April 13, 2004 Not For Further Dissemination 18 “Tamper Proofing” Through Onion Skin “Peel-Away”  Watermark detectors look for one of several possible marks.  If one mark is compromised, detector can move to one of the alternate marks to restore usefulness.  Different marks could assert different codes. Feature Summary (cont.)

19. April 13, 2004 Not For Further Dissemination 19 Competitive Advantages  Low Insertion Overhead : watermark embedding can be performed on compressed MPEG (in DCT domain); up to 10x real time can be achieved  Low-cost: both watermark embedding and detection can be implemented in chips very economically; DCT/IDCT processing circuitry is very well known in video industry.  * * * Efficient * * *: To change CCI bits, watermarking of analog video will require an MPEG Encode. Verimatrix DCT watermarking does not require MPEG encode.  Robust: watermark survives common video processing such as recompression (e.g. to 200kbps), A/D and D/A, cropping  Invisible: DCT-based perceptual model, works in HD  Anti-lift: watermarks can’t be lifted from one image to another  Anti-filtering: watermark cannot be removed by analog or digital filtering

20. April 13, 2004 Not For Further Dissemination 20 Test Results Successful Watermark Distortion Survivability:  Distortions: 1. Interleave of 2 sources: 2 src files banded in avisynth (e and b) 2. Rotation: Rotated 1 degree in vdub 3. Cropping: cropped to remove traces of rotate 4. Scaling: resize to 512 in vdub 5. Compression: xvid encoding at 750kbps  Distortions: 1. Interleave of 5 files: 5 src files banded in avisynth 2. Low-pass filter: dctfilter in avisynth (1,1,1,.5,.5,0,0,0) 3. Scaling: resize to 512 in vdub 4. Compression: xvid encoding at 750kbps  More data to be made available soon…

21. April 13, 2004 Not For Further Dissemination 21 Other attacks that the watermark will survive:  Aspect ratio changes  Cut several top/bottom lines  Divx conversion with cropping  Filtering  Averaging watermarked copies Test Results (Cont.)

22. April 13, 2004 Not For Further Dissemination 22 Development Schedules  Core product commercially viable now  ARDG Analysis Matrix available  Development for application to Analog Hole, first testable prototype scheduled July 2004. Testing with lab environment to begin early August  Chip development work, and improvements (enhancements) currently scheduled to meet goal of end of Summer 2004 for complete cycle  Closed Security Audit scheduled at end of cycle by third party auditing agency  Marks to be licensed for all business models  No royalties to be requested of CE and IT product implementers  25 Year Tariff lifetime  Full mark maintenance plan

23. April 13, 2004 Not For Further Dissemination 23 Conclusion  Proven and available technology  Invisible and robust mark  Known use royalties for all models  Low cost detection - no MPEG encode needed  HD capable  Total dedication to maintaining the effectiveness of the mark

24. April 13, 2004 Not For Further Dissemination 24 Presentation Addendum

25. April 13, 2004 Not For Further Dissemination 25 DVD Authoring adding CCI information Standard MPEG Encode Processing Input Video CCI Watermark Added to Video MPEG Video Output with Embedded CCI  CCI Watermark information is added to video after standard MPEG Encoding Process.  The CCI Watermark can be added to any video before golden master is ready for DVD production, or master video is ready for distribution

26. April 13, 2004 Not For Further Dissemination 26 False Detection Error Rate  System False Detection Rate can be predetermined using error detection and correction codes (CRCs, BCH, Turbocodes)  Detector can integrate watermark over several frames to build strength of watermark  False detection error rates of 10 -5 to 10 -9 can be achieved