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12/20/04 2:38 PM

#14689 RE: jrinphx #14683

Respectfully disagree RE STATUS OF BMG & SUNNCOMM.

The article is disconcerting. However, IR states it is not the case, nor does the article have a quote from a BMG/Sony spokesperson (note all of our PRs with EMI & BMG do). Bottomline answer me this, why would BMG choose to use SunnComm on "commercial" CDS THIS MONTH if they were going with First 4 Internet next month?

~ii2
From previous post-
IMHO Here's what we can ascertain by what is "visible" to us:

Per the Cope PR (*see below) we do know that BMG has made copy protection on their CDs an internal company wide initiative.
We also know that so far BMG has chosen to utilize SunnComm as their technolgoy of choice to implement that company wide policy. Because:
1. It was SunnComm's technology that was on the Cope CD being discussed as being automatically manufactured with the CD.
2. We have a public license agreement with BMG (and as of today we still have not seen any such major label agreement with any of our other competitors First 4 Internet or Macrovision, despite their claims).
3. We are continuing to see big artist's "commercial" CDs coming out with MM on them (in only the last few weeks)!

IF 1st 4 Internet is such a threat to us (as the article makes it sound), why haven't they even had a public PR approved by a label stating that they are working with them even on prereleases?
SunnComm: 1 major BMG 3yr license agreement, and 1 major EMI 6/17 prerelease agreement. Commerical CDs coming out in the US market this month with SunnComm's technology on them, and several PRs regarding smaller independents utilizing SunnComm's technology. And verified prereleases this summer with Universal/Concord in the US market.
vs.
1st 4 Internet & Macrovision - Zero public agreements (but a lot of claims), and personally I haven't seen or heard of any new commercial CDs out this month with their technology in the US market, have you? First 4 Internet hasn't had ANY new news (not even a small independent) posted on their website since March 2003?! http://www.first4internet.co.uk/press.asp#

Final analysis. Do you really believe that BMG would release MM on several large artist's "commercial" CDs in the "US" market (this month!) if they weren't progressing towards full deployment w/ SunnComm, and finally more satisfied with the product (why not stick with prereleases if they hadn't made a decision on whose technology they were going to use for sure)? We've "seen" "commercial" CDs in the US market beginning to transpire over the last few weeks (that's the revealing truth to me on whose technology their using).

JMHO, ~ii2

Regarding the article, note: "A watershed moment in the United States came when the BMG-released Velvet Revolver album reached the top of the industry's sales charts, despite being clearly marked as copy-protected. Industry insiders said that helped assuage some boardroom concerns about potential consumer backlash."
And whose technology made this watershed moment, SunnComm's or First 4 Internet (and with a much older version)?! Interesting that major revealing point wasn't mentioned in the article. Nor did they mention that SunnComm "currently" has CDs in the US market, or that SunnComm is the only one of the 3 competitors who already have 1 major label and several independent agreements, and a prerelease agreement with EMI. First 4 Internet & Macrovision nadda.

(Note, Please do not misunderstand me I do believe they are competition and we need to watch them very closely, just like Macrovision.)

*"RCA/BMG company wide initiative undertaken to fight piracy. Its placement on Cope's album was dictated by that policy and was not the choice of Cope or his management. We thank the label in all their efforts and are always grateful for their support but thought it was important that listeners know that this was not a decision made by the artist."