InvestorsHub Logo
Followers 19
Posts 4455
Boards Moderated 0
Alias Born 03/27/2001

Re: cksla post# 9318

Saturday, 01/19/2002 7:22:18 PM

Saturday, January 19, 2002 7:22:18 PM

Post# of 93824
IBM Microdrive Technology and MP3 May See a Future Alliance
April 6, 1999

At least three companies are considering using IBM's microdrive as a component in portable MP3 player devices. This may spell relief for Rio users frustrated by listening to the same few songs during their commute due to the limited capabilities of their devices.

According to John Osterhout, program director in IBM's storage systems division, "There are at least three different companies we are working with at the design level to ... evaluate [the drive's] functionality in 'MP3 type' portable player products."

Mr. Osterhout added that, "There are a number of companies looking at [the portable MP3 player market]. Once you create a new category like this, suddenly the consumer electronics companies come out of the woodwork."

MP3 is a widely used audio compression format that offers near-CD quality and is used for distributing files over the Internet. The major music industry labels haven't yet embraced the format, because it may facilitate the pirating of music.

Osterhout didn't specify which companies IBM was working with, their size, or when the products would be launched. He did forecast that any products using the microdrive won't hit shelves until "the middle of this year."

The capabilities of IBM's microdrive, which was unveiled last September, allows for much more data to be stored in a small drive the size of a matchbook prompting companies to develop ways to utilize the technology in their products.

For example, the microdrive could hold up to six hours of CD-quality music in a music playback device, or 300 hefty novels in an e-book, or 1,000 compressed photographs in a digital camera. All varieties of handheld computers, cellphones, PDAs, and portable player devices could get a boost in storage capabilities by using the drive.

However, an alliance with the MP3 Player may see IBM embroiled in legal battles like those facing Diamond, the manufacturer of a digital MP3 recording device called Rio. The existing Diamond Multimedia Rio MP3 player is the subject of a lawsuit filed by The Recording Industry Association of America (RIAA) against Diamond last October. The RIAA accuses the Rio of ruining the marketplace for digital distribution online. Diamond countersued last December, saying the Rio player is protected by the First and Fifth amendments.

Osterhout wouldn't comment on IBM's potential liability around such an MP3 player product. He explained that, "Basically, we are neutral to all manufacturers of all types of products. We are certainly encouraging to make a number of things possible from a technical standpoint. We are not there to fight the legal battles."

For their part, the RIAA is creating its own open specification for a technology platform with an emphasis on security, to be released at the end of the year.

Wired News 4/3/99


Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.