Reciprocal And AudioSoft Forge Strategic Alliance For Secure Digital Distribution Of Music

Reciprocal, the global digital rights management (DRM) servicesleader, and AudioSoft, the worldwide leader in Internet-based digitalcopyright management for the music industry, today announced a strategicalliance designed to enhance the secure digital distribution of music onthe Internet. The alliance, announced at the MIDEM trade show inFrance, enables the two companies to develop and integrate AudioSoft'scopyright management reporting systems into Reciprocal's DRM systems forsecure content distribution over the Internet, providing customersworldwide with the first digital copyright management system that, amongother valuable service offerings, captures and reports territorial usageinformation.

"We're thrilled to partner with AudioSoft, a dynamic and innovativecompany that shares Reciprocal's vision for delivering world-class, DRMsolutions," said Larry Miller, President, Reciprocal Music. "Thisalliance will enable Reciprocal to address territorial rights managementas well as greatly enhance our reporting capabilities. We look forwardto a prosperous and mutually-beneficial relationship."

AudioSoft's tracking, reporting and copyright management capabilitiesserve both accurate and timely copyright usage information to worldwidemusic labels, copyright collection societies and e-tailers. Thisinformation is crucial for the proper allocation and payment ofroyalties to each respective country's copyright collection society andthe publishers, labels and recording artists they represent.

"Labels and copyright collection societies are faced with the dauntingchallenge of ensuring that copyright owners are properly compensated forthe use of their works," said Gary Ludlow, Vice President and GeneralManager of the Americas at AudioSoft. "This alliance enables Reciprocaland AudioSoft to address the concerns of global copyright owners, eachof whom have different and unique territorial requirements. Reciprocalis recognized as a DRM leader and innovator and we're anxious to workclosely with their company and deliver on the promise of DRM."

During the second and third quarters of 2000, AudioSoft and Reciprocalwill work to implement AudioSoft's technology within Reciprocal'slicense key server and financial clearinghouse. AudioSoft's technologywill allow Reciprocal's customers to provide more accurate and timelycopyright usage information to copyright collection societies and musiclabels on a worldwide basis. This information is essential to the properallocation and payment of royalties to each country's copyrightcollection society and ultimately to the music producers theyrepresent. AudioSoft's technology is the foundation for a number ofplanned service offerings to be announced during 2000. The servicesfocus on removing costs, data errors, and time delays in traditionalcopyright tracking and reporting processes while providing greaterreport accuracy, timeliness in response, and visibility for all membersof the Internet's digital music value chain.