InterTrust Partners with Nokia and Releases Financial Results for 2000
Pushes Ahead with DRM Solutions for the Secure Delivery of Content to Mobile & Portable Devices
"...it's not just about digital rights management - digital rights management is just a component in that world - but it's about creating a global electronic trust context that people use to have interactions on any digital processing platform." - Talal Shamoon, SVP of Media,
InterTrust [4/26/00 MusicDish interview]
Intertrust has taken another step towards its goal of being the leader in creating this "global electronic trust context" with the announcement of a partnership with Nokia, the Swedish mobile communications
company. The agreement stipulates that Nokia will use Intertrust as their preferred DRM technology
provider. Obviously, Nokia views DRM as a key to delivering content to its mobile users in a
secure & trackable method and InterTrust as the right technology for that purpose.
To prove the point, Nokia has taken a 5% stake in Intertrust, valued at $20 million.
InterTrust has designed platforms, Rights/PDä and Rights/Phoneä, to allow for the delivery of
content to portable devices. The agreement with Nokia brings to a total 28 device manufacturers
and content providers with which InterTrust has entered into partnerships for the delivery of content
to portable devices.
"Digital Rights Management is a crucial element in digital media distribution solutions and
InterTrust has developed a best-of-breed solution suitable to both mobile DRM and computing
platforms." says Pekka Ala-Pietilä, President of Nokia.
Victor Shear, Chairman of InterTrust, stated. "To support our new partnership with Nokia and
to establish InterTrust DRM as the defacto standard in the mobile market, InterTrust intends to
invest significant resources to further develop our mobile DRM system, enabling consumers to obtain,
use, and interact seamlessly with, digital content whenever and wherever they wish."
"Only a year ago, secure digital music in portable devices was nothing more than a concept, and now
it's a reality," said David Ludvigson, President of InterTrust, in a January 5th press release. "InterTrust has moved quickly
to deploy our DRM technology in several portable devices, and PCs, to enable trusted digital
commerce with the most versatile and secure DRM solution on the market today."
Over the last year, InterTrust has made waves in the DRM arena with licenses to 60 companies
including Blockbuster, Adobe, AOL, Panasonic, DigMedia, and
Iomega, among others. In the fourth quarter of 2000, InterTrust reported revenues of $2.9
million and $8 million for the year ending December 31, 2000, up from $0.7
million and $1.5 million, respectively, for 1999. With losses amounting to $12.6 million
for the fourth quarter and $55.6 million for the year, InterTrust is still a long way from realizing a
profit from its patents. However, with the coming maturing of the online music market, following the
dot-com bubble, and the development of new business models to distribute content as well as the
calls from content creators for the protection of their content, InterTrust has positioned
themselves as the "behind the scenes player" allowing for the monitization of digital content.
"During the fourth quarter, we continued to make excellent progress on expanding our licensee base
while developing a solution oriented organization to address the increasing demand for digital
rights management solutions across multiple vertical markets," said David Ludvigson.
While InterTrust firms up deals with leading software, hardware & content players, that is only half the battle. There still remains the major labels and their reticence to release their full catalogues of
music digitally, which is holding back the ultimate potential of the music market. The decisions of the 'Big Five'
are all the more important due to other players in the content medium (video, books, software...),
who are waiting for the dust to settle over the copyright battles currently being waged in the music
industry. Most promising is InterTrust's partnership with BMG which could lend itself quite well
with Bertelsmann's and Napster's goal of providing a secure, "for pay" peer-to-peer network for the
distribution of music. Currently, BMG is deploying downloads using InterTrust at musicdownload24.de.
Adobe - www.adobe.com
AOL - www.aol.com
Bertelsmann - www.bertelsmann.com
Blockbuster - www.blockbuster.com
BMG - www.bmg.com
DigMedia - www.digmedia.cc
InterTrust - www.intertrust.com
Iomega - www.iomega.com
Nokia - www.nokia.com
Panasonic - www.panasonic.com
Related MusicDish e-Journal Articles:
» InterTrust: The OS Of The Digital Rights Market - Interview w/ Talal Shamoon, Senior VP of Media in RealAudio (2000-04-26)
Related News from Mi2N:
» InterTrust Technologies Corporation Reports Fourth Quarter And Year-End 2000 Results
» Nokia Selects InterTrust's DRM Technology And Acquires 5% Stake
» Matsushita Electric (Panasonic) And InterTrust To Collaborate On Secure Music Distribution
» InterTrust DRM Technology Deployed In Portable Devices
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» Two-Sides of Copyright Finance: Sound Royalties & Kobalt
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