INTELLECTUAL PROPERTY AND PATENTS
Our electronic sell-through platform is comprised of four primary functions: Content Ingestion - preparation of products for on-demand production; Content Distribution - delivery and updating of encrypted products to retail stores; Content Production - on-site recording to DVD discs or other digital media, and Content Reporting - reporting of all product sales to content owners. We have developed proprietary software and technologies to automate each of
these and several hundred supporting processes based on our many years of direct experience with on-demand production. We also provide retailers with hardware purchase specifications and point-of-sale / network integration services.
We regard our intellectual property as proprietary and rely on a combination of patent, copyright, trademark and trade secret laws of general applicability, employee confidentiality and invention assignment agreements, distribution and OEM software protection agreements and other intellectual property protection methods to safeguard our technology, processes and internal systems.
We have received two United States patents for various aspects of our on-demand service. U.S. Patent #5,784,460 covers a proprietary process whereby encrypted products can be added to an optical disc or other storage media and subsequently unlocked by a consumer from their home computer. U.S. patent #6,502,685 covers an electronic return process whereby the original optical disc or other storage media is rendered unusable thereby eliminating the need for return of the physical product. We are in the process of expanding our patent portfolio to include several important innovations that we believe will be key in the future of on-demand production.
Our intellectual property includes the source code for our on-demand software platform and internal systems. We also rely upon our continuing efforts to design and implement improvements to our service to maintain a competitive position in the marketplace.
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