Sony BMG CD Consolidated Settlement Gets Final Nod
A federal judge on Monday granted final approval at a hearing in federal court in Manhattan to a settlement between Sony BMG Music Entertainment and consumers who filed a class action lawsuit against the world's second-largest music label.
The settlement covers two content-protection technologies, XCP and MediaMax, which Sony BMG included on some music CD titles. The final settlement, approved by federal judge Naomi Reice Buchwald, largely follows terms tentatively agreed to in January, 2006. Under the terms of the settlement there was never any need to recall CDs containing MediaMax software. Also, Sony BMG was not required to make any cash payments to consumers on behalf of SunnComm.
Subsequent extensive third-party testing determined that the MediaMax software and Sony BMG never collected or retained personal data regarding consumers without their consent – contrary to grossly inaccurate and irresponsible stories written in the press stating otherwise.
In a statement Monday, Sony BMG said it was "pleased that the court today granted final approval of the class action settlement of the consolidated cases concerning XCP and MediaMax." The agreement ends a challenging chapter in SunnComm’s history and has provided our Company with the framework and an overview of best practices that will be rigidly adhered to moving forward. According to Peter Jacobs, SunnComm president, “We believe the digital rights of content owners require the same kind of protection one relies upon to guard one’s physical property. We’ve understood all along that standards regarding the protection of CDs would be a ‘work in progress,’ just as with all software. If that weren’t true, Microsoft would have waited for Windows Vista (Microsoft’s replacement for Windows XP).”
Our company has worked for years to establish standards and normalized basic industry requirements. SunnComm took on a pioneering role, early on, in an industry that continues to lose millions of dollars to piracy every year. We’ve taken the fight all the way to congress, but the industry was indecisive and unable to reach a consensus. Thanks, in part, to our pioneering work, along with recent developments like the Sony BMG settlement, standards are finally beginning to emerge. SunnComm is very comfortable with these recently established guidelines and will continue to work with our entertainment industry partners, industry groups and security experts as we implement these best practices. Our goal is to supply the world with the best protection technology available anywhere, and everyone at SunnComm feels this goal is clearly achievable.
MediaMax (V.6) Begins Comprehensive Test Phase
The newest MediaMax version 6 software has been completed and is currently beginning a comprehensive testing regimen. This battle-tested technology provides the foundation for an array of new entertainment enhancement and content protection products and is scheduled for release at the completion of this rigorous testing phase. This next-generation product from SunnComm meets the latest standards and security requirements and is ready for world-wide distribution with great features users will love including Apple iPod support, On-the-Fly Technology™, SecureBurn™ and support for variable bit rates when copying songs, to name just a few features…
SunnComm remains committed to the MediaMax CD copy protection technology. As a matter of fact, copy protection initiatives in Europe, South America, Australia and Asia remain strong and represent a substantially larger market than the U.S. After becoming the most scrutinized copy protection software in the U.S., MediaMax from SunnComm is poised to conquer those international markets. Before the close of this year, SunnComm intends to make its new, consumer-friendly MediaMax V.6 CD copy protection product the #1 choice of record labels throughout the world.
ABOUT SUNNCOMM
In just five years, SunnComm International Inc. (OTC: SCMI) has become the leader in digital content enhancement and security technology for audio compact disc media. MediaMax can be found on many Gold, Platinum and Double-Platinum selling Albums including Dave Matthews’ Platinum-selling, “Stand Up” and most recently, Foo Fighters, “In Your Honor” and The Backstreet Boys, “Never Gone.” Other popular releases that include MediaMax are J-Kwon’s Gold “Hood Hop,” and Velvet Revolver’s “Contraband” which was the first copy protected CD to reach the #1 spot on Billboard's Top 200 Album Chart and went on to achieve Double-Platinum status by selling more than 2 million units. SunnComm’s MediaMax technology has appeared on many other best-selling albums, totaling over 140 commercially released CD titles across more than 30 record labels. SunnComm was the first company to commercially release a content-protected audio CD in the United States and co-developed and implemented an early version of the Microsoft Windows Media Data Session Toolkit (www.microsoft.com/presspass/press/2003/jan03/01-20SessionToolkitPR.asp) Bonus features include on-board press kits, artist-related promotions, videos, song lyrics, artist bio page, photo gallery, web links and tune-sharing capability through SunnComm’s MusicMail™ functionality. For more information about the company please visit the Web site at (www.sunncomm.com), or call the Company at (602) 267-7500. For additional information or investor relations please contact:
Company Contact: Investor contact:
Peter H. Jacobs Investor Relations
602-267-7500 602-231-0681
peter@sunncomm.com press@sunncomm.com
