1. TM Click to edit Master subtitle style Lessons from Napster Copy Protection Technical Working Group Mickey W. Mantle – COO/SVP Development (mmantle@gracenote.com) Stephen White – Director Business Development (swhite@gracenote.com)

2. 2 2 Confidential and Proprietary Outline The Problem Possible approaches Lessons From Napster Be prepared by putting the necessary pieces in place How Gracenote can help Experts in identification and database technologies System Diagram About Gracenote Partners

3. 3 3 Confidential and Proprietary The Problem Technology advances have enabled explosion of “small” user generated transferable video and audio files Peer-to-peer network proliferation exponentially magnifying the distribution of “illegal” content Distributed network architecture makes blocking/policing difficult DRM solutions attempt to control and limit distribution creating an arms race mentality Copyright holders currently not participating in the success of peer-to-peer Public perception very important to not alienate end- users

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5. 5 5 Confidential and Proprietary Possible Approaches Use the legal system to enforce control of distribution Takes a long time Expensive For every 1 shut down 2 start-up Use technology to block, police, and track No central rights database Tracking/Blocking systems not in place Create legal alternative Requires licensing and royalty structure Has to be complementary to existing business

6. 6 6 Confidential and Proprietary Lessons From Napster Legal approach was employed by copyright holders to STOP distribution –Joint responsibility for proof of copyright –Blocking system Copyright information submission –Tracking and rights payment system irrelevant – no licenses Eventually shut down the network but not the distribution of content New Peer-to-peer networks harder to track –New networks off-shore –No central servers

7. 7 7 Confidential and Proprietary Lessons From Napster Proactive approach required –Blocking not the only answer Any single approach destined to fail Embrace and extend –Any technical solution must work for both sides –Availability of required technology and data key –Willingness to license distribution may be necessary Find ways to harness the distribution for copyright holders benefit

8. 8 8 Confidential and Proprietary Lessons from Napster Be prepared by putting the necessary pieces in place Support creation of blocking, tracking, and rights payment database Create standards around identification, tracking, rights payment across all studios and formats Submit video and associated metadata to centralized database Tracking, Rights Payment, Blocking, Reporting all possible if right pieces are readily deployable If music copyright holders had pieces in place they would have had more options

9. 9 9 Confidential and Proprietary How Gracenote Can Help Experts in identification and database technologies –Multi-step ID solutions –Experts in creating large scalable databases –Mature technology –Distributed secure submission systems –Rules-based systems with custom administrative interfaces

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11. 11 11 Confidential and Proprietary About Gracenote Founded in 1995; 43 employees in Berkeley & Tokyo CDDB core technology Over 4000 PC and device licensees Database of 23+ million titles Multiple recognition technologies Related content delivery technology Targeted content delivery Usage data Peer-to-peer identification, tracking and rights payment Multi-step identification and tracking system Enables rights payment, targeted content delivery and usage data aggregation

12. 12 12 Confidential and Proprietary Gracenote’s Customers

13. TM Click to edit Master subtitle style