UNITED STATES PATENT AND TRADEMARK OFFICE
`
`BEFORE THE PATENT TRIAL AND APPEAL BOARD
`
`Samsung Electronics America, Inc., et al.
`Petitioner
`
`v.
`
`Smartflash, LLC
`Patent Owner
`
`Case CBM2014-00190
`Patent 7,334,720
`
`PETITIONER’S RESPONSE TO PATENT OWNER’S OBJECTIONS AND
`NOTICE OF SERVICE OF SUPPLEMENTAL EVIDENCE UNDER 37 CFR
`§ 42.64(b)(2)
`
`1
`
`SAMSUNG 1043
`Samsung Electronics v. SmartFlash
`CBM2014-00192
`
`

`
`
`
`Proceeding No.: CBM2014-00190
`Attorney Docket: 39843-0003CP1
`
`UPDATED EXHIBIT LIST
`
`SAMSUNG-1001 U.S. Patent No. 7,334,720 to Hulst et al. (“the ‘720 Patent”)
`
`SAMSUNG-1002 Excerpts from the Prosecution History of the ‘720 Patent (“the
`Prosecution History”)
`
`SAMSUNG-1003 Declaration of Dr. Jeffrey Bloom re the ‘720 Patent (“Bloom”)
`
`SAMSUNG-1004 U.S. Patent No. 5,530,235 (“Stefik ‘235”)
`
`SAMSUNG-1005 U.S. Patent No. 5,629,980 (“Stefik ‘980”)
`
`SAMSUNG-1006 PCT Publication No. WO 00/08909 (“Gruse”)
`
`SAMSUNG-1007 PCT Application PCT/GB00/04110 (“the ‘110 Appln.” or
`“‘110”)
`
`SAMSUNG-1008 United Kingdom Patent Application GB9925227.2 (“the ‘227.2
`Appln.” or “‘227.2”)
`
`SAMSUNG-1009 Transitional Program for Covered Business Method Pa-tents—
`Definitions of Covered Business Method Patent and
`Technological Invention, 77 Fed. Reg. 157 (Aug. 14, 2012)
`
`SAMSUNG-1010 A Guide to the Legislative History of the America Invents Act;
`Part II of II, 21 Fed. Cir. Bar J. No. 4
`
`SAMSUNG-1011 Interim Guidance for Determining Subject Matter Eligibility for
`Process Claims in View of Bilski v. Kappos (Jul. 27, 2010)
`
`SAMSUNG-1012 Apple Inc. v. Sightsound Technologies, LLC, CBM2013-00019
`Paper No. 17 (entered Oct. 8, 2013) at 11-13
`
`SAMSUNG-1013 Volusion, Inc. v. Versata Software, Inc. and Versata Devel-
`opment Group, Inc., CBM2013-00017 Paper No. 8 (entered
`Oct. 24, 2013)
`
`i
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`2
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`

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`
`
`Proceeding No.: CBM2014-00190
`Attorney Docket: 39843-0003CP1
`
`SAMSUNG-1014 Salesforce.com, Inc. v. VirtualAgility, Inc., CBM2013-00024
`Paper No. 16 (entered Nov. 19, 2013)
`
`SAMSUNG-1015 RESERVED
`
`SAMSUNG-1016 RESERVED
`
`SAMSUNG-1017 RESERVED
`
`SAMSUNG-1018 RESERVED
`
`SAMSUNG-1019 RESERVED
`
`SAMSUNG-1020 RESERVED
`
`SAMSUNG-1021 RESERVED
`
`SAMSUNG-1022 RESERVED
`
`SAMSUNG-1023 RESERVED
`
`SAMSUNG-1024 RESERVED
`
`SAMSUNG-1025 RESERVED
`
`SAMSUNG-1026 RESERVED
`
`SAMSUNG-1027 RESERVED
`
`SAMSUNG-1028 Weinstein “MasterCard Plans Point-of-Sale Product for
`Merchants Leery of Bank Cards”
`
`SAMSUNG-1029 Mayo Collaborative Serv v. Prometheus Labs., Inc., 132 S. Ct.
`1289 (2012)
`
`SAMSUNG-1030 Gottschalk v. Benson, 409 U.S. 63 (1972)
`
`ii
`
`3
`
`

`
`
`
`Proceeding No.: CBM2014-00190
`Attorney Docket: 39843-0003CP1
`
`SAMSUNG-1031 Cybersource Corp. v. Retail Decisions, Inc., 654 F.3d 1366
`(Fed. Cir. 2011)
`
`SAMSUNG-1032 Bilski v. Kappos, 130 S. Ct. 3218 (2010)
`
`SAMSUNG-1033 Alice Corp. v. CLS Bank International,134 S.Ct. 2347 (2014)
`
`SAMSUNG-1034 Bancorp Serv., L.L.C. v. Sun Life Assur. Co. (U.S.), 687 F.3d
`1266 (Fed. Cir. 2012)
`
`SAMSUNG-1035 Dealertrack, Inc. v. Huber, 674 F.3d 1323 (Fed. Cir. 2012)
`
`SAMSUNG-1036 SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319 (Fed.
`Cir. 2010)
`
`SAMSUNG-1037 In re Bilski, 545 F.3d 943, 88 U.S.P.Q.2d 1385 (Fed. Cir. 2008)
`
`SAMSUNG-1038 Accenture Global Services, GmbH v. Guidewire Software, Inc.,
`728 F.3d 1336 (Fed. Cir. 2013)
`
`SAMSUNG-1039 RESERVED
`
`SAMSUNG-1040 Stephanie Cook, Audio revolution blasts record companies,
`Christian Science Monitor April 29, 1999
`
`SAMSUNG-1041 Doug Bedell, THE MP3 WAVE: As millions download music
`off the Net, piracy enforcement flounders, Dallas Morning
`News July 27, 1999
`
`SAMSUNG-1042 Internet gains higher ground, Marketing Week January 20,
`2000
`
`SAMSUNG-1043 Napster Operates a Pirate Bazaar – RIAA, Newsbytes News
`Network December 10, 1999
`
`SAMSUNG-1044 Digital music recorders OK, Cincinnati Post June 16, 1999
`
`iii
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`4
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`

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`
`
`Proceeding No.: CBM2014-00190
`Attorney Docket: 39843-0003CP1
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`SAMSUNG-1045 Microsoft and BMG Move Digital Music Into Mainstream, PR
`Newswire November 15, 1999
`
`SAMSUNG-1046 Microsoft and Diamond Multimedia Showcase Rio player in
`live demonstration of Windows Media, M2 PressWIRE
`November 16, 1999
`
`SAMSUNG-1047 About ASCAP Licensing, American Society of Composers,
`Authors and Publishers (1999)
`
`SAMSUNG-1048 Frequently Asked Questions About Licensing, American
`Society of Composers, Authors and Publishers (2000)
`
`SAMSUNG-1049 Music for Money, American Society of Composers, Authors
`and Publishers (1999)
`
`SAMSUNG-1050 U.S. Patent No. 5,778,187 to Monteiro et al.
`
`SAMSUNG-1051 Keith, Michael C., The Radio Station Broadcast, Satellite and
`Internet, Eighth Edition, 2009
`
`SAMSUNG-1052 Digital Millenium Copyright Act of 1998
`
`iv
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`5
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`
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`Proceeding No.: CBM2014-00190
`Attorney Docket: 39843-0003CP1
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`Petitioner respectfully submits that Patent Owner’s Objections to Evidence
`
`served on April 15, 2015 fail to establish a need for correction to the evidence filed
`
`and served with the Petition, which is properly before the Board. Because,
`
`however, such correction may eventually be deemed appropriate by the Board,
`
`Petitioner hereby serves, pursuant to 37 C.F.R. § 42.64, the Supplemental Evidence
`
`identified in this paper’s updated exhibit list.
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`
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` 4/29/2015
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`Date: __________________
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`Customer Number 26171
`Fish & Richardson P.C.
`T: 202-783-5070
`F: 202-783-2331
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`Respectfully submitted,
`
`/Thomas Rozylowicz/
`
`
`Thomas Rozylowicz
`Reg. No. 50,620
`
`
`
`Counsel for Petitioner
`
`1
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`6
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`Proceeding No.: CBM2014-00190
`Attorney Docket: 39843-0003CP1
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`CERTIFICATE OF SERVICE
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`Pursuant to 37 CFR §§ 42.6(e)(4) and 42.205(b), the undersigned certifies
`
`that on April 29, 2015, a complete and entire copy of this Response to Patent
`
`Owner’s Objections and Notice of Service of Supplemental Evidence, with the
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`corresponding Exhibits, were provided via email to the Patent Owner by serving
`
`the correspondence email addresses of record as follows:
`
`Michael R. Casey
`J. Scott Davidson
`Davidson Berquist Jackson & Gowdey, LLP
`8300 Greensboro Dr., Suite 500
`McLean, VA 22102
`
`Email:
`
`mcasey@dbjg.com
`jsd@dbjg.com
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` /Diana Bradley/
`Diana Bradley
`Fish & Richardson P.C.
`60 South Sixth Street, Suite 3200
`Minneapolis, MN 55402
`(858) 678-5667
`
`7
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`

`
`‘Tr; injure no man,
`but to bless all mankind’
`
`EOSTOV - THL'R5D.r\‘i'
`.-\?RlL 29. I999
`
`'l'ill-'
`
`C RISTI
`AN
`CIENCE
`AMON ITOR
`
`;.-u:-.
`
`..,'a -\-u..w..--:-.w...i._\1'- L ‘as-.-in
`
`Black cocaine Drug fmflickers ham’ rmda
`wcry Io alter Hie drug so it elude.-= derelmoii.
`
`Statehood OI lillllr.’ .-ti-afhi‘ appears t-n‘J"£lll'}b¢.’l_\‘f(J
`deefare III‘ HI:'esJ‘i'riIon stars on May at rieadiiru-.
`I
`
`ideas Who owns a
`mmpirrer '5.‘ operating gvsrem E
`riyuiarig Ffnri. Lt":-ms Tonufd.-1. Mink.-'_uz'm do.
`
`2
`
`6
`
`15
`75¢
`
`Soirlilillricf
`
`Sonuultofi-etansnu-5.:-ea-eauu-nor
`Joinniiamme. sotrm .|FitIl:.|.
`ETER VUNDLA drives
`a flashy sports car. col-
`lects Ilnc an. plays pit.
`and ea-vars his success in the
`new Saudi Africa at some oi
`its ow-at occlusive cluha. He is
`the very finance at a class the
`country dupcnateiy lacked
`during its apanheid past: the
`black bourgeoisie.
`"I always intended to be a
`black
`lat
`oat.”
`says Mr.
`\i'i.Lnd.l.a. ehuxrkllng in a dapper
`designer shin and tie.
`‘I am
`one l1ow.AI'Id I love it.‘
`Pm gears oi den-iocraiii:
`rule opened the door to score:
`
`vs nip mflI:L-m
`
`In paying
`for war,
`Congress
`criticizes
`
`IGOP lawmakers use
`
`power of purse to signal
`disapproval with Clinton's
`wartime leadership.
`By Al: Sent fiiinn
`Snecui mi-in.a:IUneail U The chnsraao 5|;-i.-in Mon-ioi
`
`uiuiiimirnu — Pm Cungrtss gs-apples uns
`week with abstract questions of whether
`to auilioriar-. war qzatrial
`l'l.ifiosIuIi'l.a.
`its
`only real girl on US policy In the
`Balkans Lakes a far morn; concrete form-
`dollars.
`The GOP-led Congress is using its
`purse-string powers to assert IL-3 views
`not only on President Clinton‘: Kostxvu
`strattgl. but also oI1 his mrriiliitment to
`military rtadlm-as and his [.I.'flBrlnflI]I:1"
`as .l9u'ne'riI:a's commander in chief.
`C-orig'essional monies rm Knsom are
`r~.k‘ar|_\' dcruons[rzitr.'d In two cnierg-r11:_\'
`spending hills working their way mrougji
`lhi: House and .‘.1'l.‘n:lle this week. The
`bills would roughly double [hr ('.‘|.Inloln
`nelministratlorfs request for 86 billion to
`fund the US portion of
`the NATO
`'rIII‘."«l1'l.l((‘.‘I and prorldu: ll¢.'lI('l I'o1 Kosovvds
`t‘ll1lIIf‘ Albanian refugees.
`Lly l1J.kIl'LH up the {minding to as mueh
`iifi SI 3 billion. Lir abovl: the ]Jresld.r.-nlli
`ruquesl. Re{.ilIlili1';iri:u are trying to use
`U'iI.' legislation in '.|tlt".-nun" their own na-
`tlonid-.'i.rrurity ]}l‘l(lrIlll.‘!-i while flr1n;.[ olTa
`Sfrfltlgfllflltmtllt about IJ1i:‘ inadequacies
`uf Mr. Clinlulfs ililliiury iraiderrililp.
`Sw 0051 page 9
`
`-10 ‘Warthog plane this month in Auiiano,
`ltaly. a base used for strikes on Yugoslavia.
`‘liliilltn ‘I111-I BOHTRDVEISY: Airrnen prepared 3Cl—rnm dealt-led—uranlum rounds for an
`W —Ew iiiifiilll'ii‘i'l‘il'illlii 37%” W
`
`left over [tom the
`making of nuclear
`fuel and bombs. Be-
`rause at its success.
`DU has already be-
`come a slaple of Lhe
`US military‘: arse-
`nal. II has been sold
`by Ihe ‘US and Rus-
`sia to other
`iorees
`all uver the world.
`in me ‘W31’ over
`Knsnvn Ioday, NATO
`has loaded DU rounds Inla the gum: of Air
`Port‘: in-1%. So far. lhc MI F‘orI:t.- says. this
`highly ctlective antitank ordnance ha.-i not
`yet been used
`Wlierever ll Is Ilrcd. It leaves a rudioaciiw
`trail.
`
`A.
`tank gunners tn Lhe
`Gull’ War
`raved
`The onnor-piercing wonders of
`aboul it. It was their
`it: helped win the
`depleted “ram.”
`‘silver bullet.‘ pierrn
`is loaded for use
`mg the
`E'I.ITI10f
`of G“lfW9“A3‘£
`Iraq's Soviet-made
`in Kosotio, questions about its
`tanks as tithrry were
`soda cans.
`lorzg—tei-m dangers linger.
`Gunners became
`First of two parts.
`u('Cu5lcIml.'d. lo firsl-
`ruund.
`lankvfired
`By Scott Pahnon
`Sta?! Willi?! of The Chnsiiari Science Morirtot
`slime
`that wlitni
`Iraqi
`T-725 wilh
`lhe result was
`such force and fire itml
`dubbed "l)anlt-'3 lrilernu." I-‘lred from A-10
`-'lank—bu.-ster‘ planes in 30-nIn1 form.
`this
`"bullet stopped armored t~or1\'oys in their
`tracks.
`This is the tail: of a l1ig)'1—dtensILy bullet
`made of daplclcd uranium IDUI. a low-irircl
`
`See TRAIL page I2
`
`Young and male in America: It’s hard being a bby
`
`Iy Brd Iliicltllbocknr
`Sufi I'|'|'|l.‘i oi I'M: Enfil‘-'§l|a" Science Mort-iv
`
`Hi-iie's whal It's like to be a buy in Armr-
`lczi today.
`Boys drop out oi school. are considered
`rniolionally disturbed. and mmnut suicide
`four times an alien as g.rLs: lhcy get in twin:
`as many l‘)ghI.*r. Ihe_v Iiiumrr lD'llIIN?h'IIID1'E
`lrequently: and become the I-"tttrn ofa crtme
`[5 times more often. They are less likely
`
`ll'l.El.l1 girls to go to college [because they
`haven't done’ as well In hifll schooll: are la-
`heled “slow learners" arid asslgiied lo “spe-
`cial ed” classes twice ins often; and far more
`boys than girls are magnased as having “al-
`lenlion deficit disorder‘ and placed on pow-
`erful pre.I1cr|pLiori clnuzs.
`'l'I1l.5 dues nol clesrrlbe all. or r_'i.'t't1 IIII.)O1l
`boys in Amerira. Bul the figures. arid espe-
`cially their pattern. are disturbing - ¢-.~.pe-
`
`nally as they relate. to extreme antisocial be-
`havior.
`the
`And as the ruunlry sorts Ihrougji
`emuttonai debris of the Littleton. Colo.. high
`school shooting last week. there has been a
`lot of talk about warning signs mowed or
`igmared his pa-irenl.-.. Irarhrm and religious
`Ieilderts
`-
`rraipolias-llile
`fldllllb wllu rvuld
`have prevented this Lragcdy. us well as flu‘
`See GUVB page 4
`"P
`
`8
`
`

`
`THE Ci-11ti5T1.=-in SCIENCE MONITOR
`
`MUSIC ON THE WEB
`
`:-
`ideas
`
`Thursday. April 29. 1999
`
`Audio revolution blasts record companies
`
`3; Sliaiihanlc cool:
`Soetial to The Dirmiaai Samoa Monitor
`err}; Sinay should be
`studying for finals next
`week.
`Instead.
`he's
`scouring the Internet
`for free n'Iu5.i.I:‘
`in his
`quinicssetztial collcg:
`complete with a mega-
`pad.
`sound system. mood lamp. and
`electric guitars draping down liv-
`ingroorn walls.
`‘I don‘t have to pay. and I can
`listen to it as often as I want.“
`says Iht: student at
`the Massa-
`chusetts C|Lil'l'lI'|'ll.-1l'lIt.‘2lll0ll.'a' Col-
`lege In Boston. With a few clicks
`of a mouse. the Dlgahle Planets
`surge from his computer-turned-
`Jukebox.
`He's one oi’
`the millions of
`Vaeb-sany teens and twenty-
`somethi.I1g,s who arc
`skipping
`trips to record stores and joining
`a digital-niusic revolution that
`has the music industry reexam-
`tuing its business model.
`Mr. Sinay has downloaded
`about
`'20 tracks - everything
`from the Stone Temple Pilots to
`the Doors - which lic can also
`play by connecting his computer
`to his stereo or on a ‘.\lalkrnan—
`Ilkc device
`that mts about
`3200. Using a digitally comv
`pressed formal known as MP3
`IMPEC--i Layer 3]. which offers
`near CD-quality sound. Sinay
`can c-mail songs to friends with-
`out a trace. Although there are
`other digital formats. MP3 is the
`most widely used {lee related
`Irflclel.
`
`Boollaggora prefer MP3
`Iiia bcconn:
`lhe format of
`choice for a new breed of boat-
`leggers — digital ories.wl1.ose ‘Web
`sites are proliferating dally.
`But pirates aren't
`the only
`ones using the technology. Music
`buiis can legitimately download
`MP3 Iilesfocrtree or payaboui $1
`per single from onlinc retailers
`such as flint or jut
`‘l"l:ie l.fi2liI.l!IDlOg' has a 812 hi]-
`ilon music iridustry fired up over
`how it
`tune down onllne lift-
`tng that's
`Ling it millions oi’
`dollars a
`D1
`lost sales.
`Adding to that.
`retailers and
`record labels worn! they mlgit
`get cut out ofthe deal. They ques-
`tion whether consinnera will con-
`tinue shelling out $16 for a CD.
`ii’ digital songs are free or cost
`less. Artists may opt
`to go
`straight to the consumer by post-
`tng albums online instead oi
`through a separate agent. Rock
`band Public Enemy. for example.
`dumped its record company rev
`cently: choosing instead to re-
`lease an album on the Internet.
`"V-E: know that there are more
`than 2 million
`people each
`month downloading Winnn-1p."
`
`IJ'l£' software to play MP3 tracks
`on
`computers.
`says Duncan
`Kennedy. vice president of Audio
`Explosion.
`Piracy l1:-Ls gonelip since MP3
`became popular - altliough its
`hard to calculate by exactly how
`much.
`says Stew: Marks.
`a
`spokesman for the Rocorci1ngin-
`rlusiry Association of America
`[RlN\]. which represents major
`labels. As It gathers more con-
`verts. MP3 piracy could cut even
`deeper into profits. he adds. “On
`any given day. we can find thou-
`sands of lllirgall records and Ego
`alter] a lwehl site.’ but policing
`them nnline ‘is almost like play-
`ing zi game oi"W'h.ack-a-lliolc.’ As
`soon as we shut down one oper-
`ation. another pops up.” he says.
`Copyright penalties can cost up
`to 5 l 09.000 per irifringcmcnl. he
`adds.
`It‘s a different operation from
`making illegal cassette copies.
`Marks says. “MP3 allows any-
`body to become a worldwide
`publisher of virtually CD-quality
`music. ll i::i.n be more easily clone
`landl quality Isn't
`lost when
`copies are made." But the asso-
`ciation has been cracking down.
`and Industry executives agree
`that Lhe answer combines en-
`cryptlon with ciigitalvrighis man-
`agemeni.
`the RIAA created
`Last year.
`the Secure Digital Music Initia-
`tive. seeking to come up with new
`industry standards for copyright
`protection and distribution of
`music in digital formats. it filed
`lawsuits against makers of MP3
`hardware products. such as the
`Diamond Rio. a portable MP3
`player. alleging violations of the
`1992 Audio Home Recording
`Act. Artists don‘t receive royalties
`for music played on the device.
`whue the case hasn't been de-
`cided.
`Iht: association waarrt
`
`graJ:tted a pu'eltri'tinary injunction
`to stop the Rio from hliiing
`shelves. Marks says.
`But as the industry tries to
`snuff out
`digital bootlegng.
`companlmfire recognizing Ihe
`hurgeontng'Iri11uence of cyber-
`
`space In bulldingan audience for
`musicians and selling music.
`Microsoft Corp.. for example.
`announcecl it will launch a soil-
`Warc called his Audio 4.0 to de-
`ilver secure music over the wish.
`And record mmpauies BMG En-
`
`nnoIIn£noirrBr1u:we:1Boti'nnnorun.uuu¢vroI‘Iowu
`Iunurd:hlotton.nn'flc!itzecIuIontnariot'eodwIl:II|rIeu.
`
`MEANIIIHSOCTMIN -‘JIAFF
`
`igtiopying music from the Web
`Iio1I|.'aoeaII.IIua'k?1'opiaya.ni\«iP3 iraclt.
`What in BPS? It stands for MPEG-1 Layer
`3 and was created In 1992. says Eric Schcirer.
`you need a player arid. for better sound. a pair
`a research assistant at the Massachusetts in-
`of speakers connected to your computer. You
`can download dozens of difierent players from
`stitute oi‘ Tbdzinologfs Media Lab. lt‘s a layered
`audio-compression format that has a small file
`npleuu. such as Wiriamp. the most popular
`{or PCs. On the same site or on others such as
`size. oilfers near CD-quality sound. and trans-
`mits music emily over the llvbb. MP3 is an open
`nohnhuson. you click and legally download
`standard - no one controls it. Thchnlcally. MP3
`songs for free or {or about SI each. It typically
`makes music more eiflclcni because it trims
`takes three-to-titre times the length of the song
`encessdata andorily compressesthepariyou
`to download it. Scbeirer ys. High-speed T-1
`lines reduce dowrlload time to a few seconds.
`can hear. Mr. Sch-etrer says.
`Then you drag the file onto your virtual playcr
`MP3 is legal. but it makes it easier to copy
`deck and click the play button. ‘ibu Gin also
`and trarisrnit copyrlgflitcd songs without per-
`mission because not many MP1! tracks have
`take songs with you by transferring them to a
`portable player. like the Diamond Rio. which
`tvaterrna.rks_ or playback restrictions. Musi-
`stores about -10 minutes oi’ music.
`cians and Vicki: sites sell or give away song le-
`- 5.8.
`gilmalely. but most MP3 sites are
`
`9
`
`tertalnmeni and Universal Music
`Group formed a joint L'ciiii.irr
`this month to create :1 writ.-s of
`Vkb sites in promote and sell
`music. The sites will
`feature
`artist profiles. live music broad-
`casts. and link users Io Gibr-
`showi. a new Web music store.
`But while the lntcmel appears
`to be nial-ting record companies
`vulnerable. a 10 percent revenue
`increase last year for record la-
`bcis may show that the dzimaigze
`isn't as bad as the Industry fears.
`says Eric Scheirer. a research as-
`sistant at the Massachusetts In-
`stitute oi Technologys Media
`Lab. “It could even be helping
`them." he adds.
`Artists
`—
`especially lesser-
`known ones — tend to agree. ar-
`guing there's tremendous value
`in using MP3 as a proninllonal
`tool. Garage bands can get‘ fans
`a taste ofwhafs coming. they say.
`and use It to lest out new song.
`Since the band Flirioiis N
`started posting nmsic on its Web
`site five months ago. concert-
`ticket sales have Jumped and
`popularity has spread by word oi
`rnouui. says Ian Taylor. singer
`and guitar player or the two-year-
`Did group from San Diego. ‘They
`come to our live show after they
`listen.“ he says. ‘A lot of friends
`say they dovirriload.“
`
`Huh rnunit: iirll your
`There's no question that wish
`distribution will flourish in the
`next five to 10 years. says Randy
`We-iner.
`cxccutlvc producer of
`new media for LOUD Records.
`whose artists include hip-hop
`hands. M a time when more peo-
`ple are shopping onlinc for ac-
`cess and convenience.
`they'll
`turn to MP3 or something like It
`for the some reasons — especially
`as
`technology makes
`digital
`downloads easier. Scheirer says.
`LCIUD is
`taking the digital
`pliutge by p&l'T.l'lCl“l.'I'lg w|tJ1 Audlo
`Explosion. a company that just
`introduced Mjulcc.
`an MP3-
`based music delivery se'r\'1ce. ‘l
`don’t
`feel
`threatened by MP3.”
`Mr. V-|‘elner says. “Fm not threat-
`ened by digital downloads elthei:
`b-fltiiusel think the music Indus-
`try will change... The Idea oi’
`ownership virill cha.nge.... ‘There
`will be more o|'a radio model.”
`CD prices may drop as digital
`downloads take oil’. but don‘t ex-
`pect.a utopia oi‘ free giveaways.
`says B-ob Zitnmerman. general
`manager
`oi‘ a Tower Records
`store hi Boston.
`"we've been
`pushing labels
`forever
`to go
`down.‘ he says. “i drink we'd all
`like to see CD5 cheaper. but the
`market will bear IMPS piracy]. in
`the next year or two. iabels will
`make sure it's something they.
`have control over.‘
`
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`4/21/15, 8:50 AM
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`1 of 9 DOCUMENTS
`
`Marketing Week
`
`January 20, 2000
`
`Internet gains higher ground
`
`SECTION: Factfile; Pg. 40
`
`LENGTH: 657 words
`
`No technology has had such a rapid impact on our lives and businesses as the Internet. To put it into perspective, radio took 38 years
`to acquire 50 million listeners worldwide, TV 13 years. Even the PC took 16 years to reach this number. The Net achieved the same
`figure in four years.
`
`The Net continues to grow at an exponential rate. As many people as live in the UK gain Net access every six months. Businesses
`have been quick to use it as a delivery channel to sell everything from books and clothes to cars and houses - commonly referred to as
`e-commerce.
`
`Companies are looking at ways to make the technology work harder by distributing goods digitally. Unlike e-commerce, digital
`commerce is immediate as the consumer can download a product at the click of a mouse.
`
`Whether it is music in an MP3 format, the latest anti-virus software, a new edition of a computer game or the most recent Mintel
`report, the Net can be used to distribute content digitally.
`
`According to new research carried out on behalf of NatWest' digital commerce service Magex, businesses are recognising the potential
`of being able to receive payment for their content and building their brands on the Web.
`
`Investment bank JP Morgan believes the market for digital content and online intellectual property is worth $ 185bn (£116bn) and is
`projected to rise to $ 275bn (£172bn) by 2003.
`
`Digital commerce is not without its challenges, such as the well-publicised fear that the copyright of digital content could be infringed.
`
`Digital music piracy cost was about $ 4.5bn (£2.8bn) in 1998 and software piracy was about $ 11bn (£6.9bn) in 1999, according to the
`Business Software Alliance.
`
`The Intellectual Property Mess report, by technology research company Forrester, says digital content, including images, business
`information and business reports worth $ 300bn (£188bn), is under threat from online piracy.
`
`Technology was introduced in 1999 to address the secure and cost-effective collection and distribution of small payments through the
`Net.
`
`Well-known names such as Microsoft, Intel and IBM have developed technology which protects digital content to various degrees.
`New names, such as InterTrust Technologies, are extending protection to new portable devices, for example, the Rio MP3 player, Sony
`Music Clip and WAP mobile phones.
`
`One of the first major companies to explore digital commerce seriously is Universal Music Group (UMG), which has a 25 per cent
`share of the worldwide music market, with artists such as Bryan Adams, Sting and The Cranberries.
`
`http://www.lexisnexis.com/lnacui2api/delivery/PrintDoc.do?fromCart…10066535%2Fformatted_doc&fromCart=false&jobHandle=2825%3A510066535
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`UMG is looking to maximise the Net's potential by allowing consumers to download and purchase enhanced music tracks, alongside
`sleevenotes, video footage and Web links, digitally.
`
`UMG uses Intertrust Digital Rights Management to protect the copyright of artists' tracks and a clearing solution from Magex which
`allows consumers to pay instantly using an electronic wallet.
`
`Mark Taylor, former managing director of Creation Records and founder of the YoYo Partnership, says: Until now, the music industry
`has been wary of the Net because of the severe problems piracy has presented.
`
`Now, with the development of effective encryption and viable payment solutions, the industry can at last embrace the Net and use its
`potential to distribute music in truly imaginative ways.
`
`As Net use continues to spiral globally, companies will be competing to build brands and businesses online. Digital commerce presents
`businesses with a unique opportunity to distribute content securely and efficiently.
`
`Moreover, the direct, information-rich and versatile interaction offers new, and more subtle, ways to build stronger relationships than
`some conventional channels.
`
`Behind the Net hype, marketing and business professionals can see a way to build profitable relationships based on enduring customer
`franchises in a wider market.
`
`LANGUAGE: English
`
`LOAD-DATE: January 19, 2000
`
`PUB-TYPE: Magazine
`
`Copyright 2000 Centaur Communications Ltd.
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`Napster Operates A Pirate Bazaar — RIAA .................................................................................................................... ..2
`
`(cid:10)(cid:2)(cid:23)(cid:6) (cid:24) (cid:25)(cid:26) (cid:27) (cid:28) (cid:29)(cid:30)(cid:24)(cid:31) (cid:32)(cid:2)(cid:18)(cid:5)(cid:11)(cid:33)(cid:2)(cid:34) (cid:16)(cid:35)(cid:18)(cid:36) (cid:9)(cid:37)(cid:37) (cid:7)(cid:11)(cid:23)(cid:19)(cid:5)(cid:4) (cid:7)(cid:6)(cid:4)(cid:6)(cid:7)(cid:33)(cid:6)(cid:38)(cid:36)
`Page 1 of 3 © 2015 Factiva, Inc. All rights resented.
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`
`(cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7) (cid:8)(cid:3)(cid:6)(cid:7)(cid:2)(cid:5)(cid:6)(cid:4) (cid:9) (cid:10)(cid:11)(cid:7)(cid:2)(cid:5)(cid:6) (cid:12)(cid:2)(cid:13)(cid:2)(cid:2)(cid:7) (cid:14) (cid:15)(cid:16)(cid:9)(cid:9)
`— - R'AA
`
`(cid:17)(cid:18)(cid:6)(cid:7)(cid:19)(cid:2)(cid:20) (cid:21)(cid:7)(cid:11)(cid:22)(cid:19)(cid:2)(cid:20)(cid:23) (cid:1)(cid:6)(cid:24)(cid:4)(cid:25)(cid:26)(cid:5)(cid:6)(cid:4)
`Shennan Fridman, Newsbytes
`488 words
`(cid:27)(cid:28)(cid:28) (cid:24)(cid:29)(cid:7)(cid:22)(cid:4)
`10 December 1999
`(cid:30)(cid:31) (cid:32)(cid:6)(cid:33)(cid:6)(cid:19)(cid:25)(cid:6)(cid:7) (cid:30)(cid:34)(cid:34)(cid:34)
`(cid:1)(cid:6)(cid:24)(cid:4)(cid:25)(cid:26)(cid:5)(cid:6)(cid:4) (cid:1)(cid:6)(cid:24)(cid:4) (cid:1)(cid:6)(cid:5)(cid:24)(cid:29)(cid:7)(cid:35)
`Newsbytes News Network
`NBYT
`(cid:1)(cid:12)(cid:36)(cid:37)
`(cid:38)(cid:20)(cid:39)(cid:40)(cid:11)(cid:4)(cid:18)
`English
`(cid:41)(cid:33)(cid:42) (cid:30)(cid:34)(cid:34)(cid:34) (cid:1)(cid:6)(cid:24)(cid:4)(cid:25)(cid:26)(cid:5)(cid:6)(cid:4) (cid:1)(cid:6)(cid:24)(cid:4) (cid:1)(cid:6)(cid:5)(cid:24)(cid:29)(cid:7)(cid:35)
`(c) 1999 Newsbytes News Network
`
`(cid:43)(cid:8)(cid:17) (cid:9)(cid:1)(cid:44)(cid:38)(cid:43)(cid:38)(cid:17)(cid:23) (cid:45)(cid:9)(cid:43)(cid:16)(cid:21)(cid:8)(cid:15)(cid:1)(cid:16)(cid:9)(cid:23) (cid:46)(cid:47)(cid:17)(cid:47)(cid:9)(cid:47)(cid:23) (cid:30)(cid:34)(cid:34)(cid:34) (cid:32)(cid:38)(cid:45) (cid:30)(cid:31) (cid:41)(cid:1)(cid:12)(cid:42)(cid:47) (cid:37)(cid:18)(cid:6) (cid:15)(cid:6)(cid:33)(cid:29)(cid:7)(cid:22)(cid:11)(cid:20)(cid:39)
`LOS ANGELES, CALIFORNIA, U.S.A., 1999 DEC 10 (NB). The Recording
`(cid:16)(cid:20)(cid:22)(cid:48)(cid:4)(cid:5)(cid:7)(cid:26) (cid:9)(cid:4)(cid:4)(cid:29)(cid:33)(cid:11)(cid:2)(cid:5)(cid:11)(cid:29)(cid:20) (cid:29)(cid:49) (cid:9)(cid:19)(cid:6)(cid:7)(cid:11)(cid:33)(cid:2) (cid:41)(cid:15)(cid:16)(cid:9)(cid:9)(cid:42)(cid:23) (cid:33)(cid:40)(cid:2)(cid:11)(cid:19)(cid:11)(cid:20)(cid:39) (cid:5)(cid:18)(cid:6) (cid:4)(cid:48)(cid:3)(cid:3)(cid:29)(cid:7)(cid:5) (cid:29)(cid:49) (cid:5)(cid:18)(cid:6)
`Industry Association of America (RIAA), claiming the support of the
`(cid:29)(cid:50)(cid:6)(cid:7)(cid:24)(cid:18)(cid:6)(cid:40)(cid:19)(cid:11)(cid:20)(cid:39) (cid:19)(cid:2)(cid:51)(cid:29)(cid:7)(cid:11)(cid:5)(cid:26) (cid:29)(cid:49) (cid:11)(cid:5)(cid:4) (cid:19)(cid:6)(cid:19)(cid:25)(cid:6)(cid:7)(cid:4)(cid:23) (cid:49)(cid:11)(cid:40)(cid:6)(cid:22) (cid:2) (cid:40)(cid:2)(cid:24)(cid:4)(cid:48)(cid:11)(cid:5) (cid:6)(cid:2)(cid:7)(cid:40)(cid:11)(cid:6)(cid:7) (cid:5)(cid:18)(cid:11)(cid:4) (cid:24)(cid:6)(cid:6)(cid:35)
`ovenrvhelming majority of its members, filed a lawsuit ear1ier this week
`(cid:11)(cid:20) (cid:2) (cid:46)(cid:17) (cid:32)(cid:11)(cid:4)(cid:5)(cid:7)(cid:11)(cid:33)(cid:5) (cid:45)(cid:29)(cid:48)(cid:7)(cid:5) (cid:2)(cid:39)(cid:2)(cid:11)(cid:20)(cid:4)(cid:5) (cid:17)(cid:2)(cid:20) (cid:52)(cid:2)(cid:5)(cid:6)(cid:29)(cid:23) (cid:45)(cid:2)(cid:40)(cid:11)(cid:49)(cid:47)(cid:14)(cid:25)(cid:2)(cid:4)(cid:6)(cid:22) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7) (cid:16)(cid:20)(cid:33)(cid:47)(cid:23)
`in a US District Court against San Mateo, Calif.—based Napster lnc.,
`(cid:4)(cid:2)(cid:26)(cid:11)(cid:20)(cid:39) (cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7) (cid:33)(cid:29)(cid:19)(cid:19)(cid:11)(cid:5)(cid:5)(cid:6)(cid:22) (cid:33)(cid:29)(cid:3)(cid:26)(cid:7)(cid:11)(cid:39)(cid:18)(cid:5) (cid:11)(cid:20)(cid:49)(cid:7)(cid:11)(cid:20)(cid:39)(cid:6)(cid:19)(cid:6)(cid:20)(cid:5) (cid:2)(cid:20)(cid:22) (cid:50)(cid:11)(cid:29)(cid:40)(cid:2)(cid:5)(cid:6)(cid:22) (cid:7)(cid:6)(cid:40)(cid:2)(cid:5)(cid:6)(cid:22)
`saying Napster committed copyright infringement and violated related
`state laws.
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`The complaint filed by RIAA said Napster "is similar to a giant online
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`pirate bazaar."
`
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`The lawsuit also accuses Napster of creating and operating an lntemet
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`haven for music piracy on an unprecedented scale.
`
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`"Napster is about facilitating piracy, and trying to build a business
`(cid:29)(cid:20) (cid