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` News - Digital Media
`
` CNET News
`May 18, 1999 12:30 PM PDT
`
`a2b Music team leaves
`AT&T for Reciprocal
`
`By Sandeep Junnarkar
`Staff Writer, CNET News
`
`Related Stories
`
`Panel sounds off on
`MP3, copyright
`April 26, 1999
`
`More than half the employees from AT&T Labs' a2b Music
`division have decided to sing to a different tune, throwing
`the telephone and cable giant's music efforts off-key at
`least temporarily.
`
`Larry Miller and Howie Singer, a2b
`Music's cofounders, along with 12 other
`senior managers and technologists,
`announced today they are leaving the
`company to join privately held Reciprocal,
`which is launching a Reciprocal Music
`division that will provide digital rights
`management services and products to the online music industry.
`
`Miller will be the division's president, and Singer will be senior vice president of business
`development. Miller will report to Reciprocal chief executive Paul Bandrowski.
`
`Miller and his team are leaving behind AT&T Labs' deep pockets--but Reciprocal is flush
`with a $15 million investment bestowed by Microsoft in March. Microsoft has made a number
`of deals lately in an effort to move further into the music download space, including a deal
`with Sony announced last week.
`
`Miller, who was a2b Music's chief operating officer, told CNET News.com that the mass
`exodus was part the team's desire to be part of a smaller, more entrepreneurial environment.
`
`"It had become more and more important for AT&T to control its music initiative from inside
`the company, and I can understand that," Miller said. "But we had made the decision as a
`management team that in order for our business to succeed, we need to run it in a start-up
`kind of business."
`
`Reciprocal, which offers products that help manage and distribute digital
`music, video, or software, has previously said it expects to go public in
`the next year or two. This could be part of the appeal of being part of a
`start-up in a market that keeps pushing Internet IPOs to breathtaking
`heights.
`
`Miller said that he, along with others in senior management, began
`testing the waters with Reciprocal, formerly known as Rights Exchange, more than a year
`ago, and entered talks earnestly in early April.
`
`"AT&T owns the name 'a2b,' they own the underlying technology, but they don't own the
`people," Miller said.
`
`AT&T said it has tapped Chris Varley as a2b Music's managing director. Varley has been an
`executive within AT&T's WorldNet Internet access service for the last three years. Varley
`also was an executive at CompuServe and worked with several music artists, including Todd
`Rundgren, who have dabbled in downloadable music alternatives.
`
`http://news.cnet.com/a2b-music-team-leaves-att-for-reciprocal/2100-1023_3-226006.html[3/20/2014 9:44:59 PM]
`
`Apple Exhibit 4267
`Apple v. SightSound Technologies
`CBM2013-00020
`Page 00001
`
`
`
`a2b Music team leaves AT&T for Reciprocal - CNET News
`
`"Larry Miller has done good work with us, but there have been a lot of great people across
`AT&T that have been involved with this music initiative," said AT&T spokesman Kevin
`Compton.
`
`AT&T is among the big technology players, IBM and Sony, that are creating music download
`technologies that offer copyright protection as a challenge to the popular MP3 (MPEG 1,
`Audio Layer 3) format. All are jockeying to have their technology become the standard for
`online music downloading.
`
`MP3 is considered by some to be the de facto standard for music downloading online, but
`many in the mainstream recording industry revile MP3 because it allows for the free,
`unauthorized distribution of copyright-protected material.
`
`AT&T is a member of the Secure Digital Music Initiative (SDMI), a consortium of record
`company and technology executives that is looking to develop specifications for secure
`music downloading that ostensibly could be part of any download technology.
`
`AT&T declined to cite the budget that Miller was given while with AT&T, saying the company
`does not break out that figure. Reciprocal declined to specify the size of Miller's new budget.
`
`"We are not going to do it halfway," said Wilma Epstein, Reciprocal's chief marketing officer,
`referring to the company's push into online music.
`
`Miller added, "I can tell you that the resources will be more than adequate to do the job that
`is laid out before us."
`
`Both companies said the departures from AT&T were completed amicably.
`
`"There are important things that AT&T and Reciprocal can do for each other in the short
`term, but we are not announcing anything yet," Miller said. "We are optimistic that we will
`have productive relationships with AT&T Labs."
`
`AT&T said it was too early to tell what could come from the companies' evolving relationship.
`
`Join the conversation
`
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`http://news.cnet.com/a2b-music-team-leaves-att-for-reciprocal/2100-1023_3-226006.html[3/20/2014 9:44:59 PM]
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`a2b Music team leaves AT&T for Reciprocal - CNET News
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