Information contained in the news release is current as of the date of announcement.
It is subject to change without prior notice.
Pioneer and Sonic Initiate Joint Licensing Program
for CSS RecordingSonic to Administer Qflix Technology and IP Licensing Program
for Secure DVD Recording
Tokyo, Japan, and Novato, California (October 2, 2007) - Pioneer Corporation, a leading global manufacturer of consumer and business-use electronics products, and Sonic Solutions®, the leader in digital media software, have begun a worldwide joint licensing program of patents and other related IP for the encryption and burning of video content to recordable DVD media for playback on DVD players. To respond to consumer and industry interest in "electronic sell-through" of video content and to facilitate the adoption of secure download and burn applications in accordance with the approved industry specifications for recording downloads set by the DVD Forum and the DVD Copy Control Association, Pioneer and Sonic have established a royalty-bearing licensing program that will be administered by Sonic under the Qflix™ name. The program will broadly license the companies' combined intellectual property that allows DVD recording technologies to use CSS (Content Scramble System), which is the same content protection found on commercially released DVD movies.
The essential patents and other related IP developed by Pioneer and Sonic help address the three-fold problem of how to: 1) allow consumers to legitimately download and burn video content purchased over the Internet, 2) provide security for content owners who wish to distribute premium content over the Web and allow users to record it to DVD with retail-identical copy protection, and 3) deliver the convenience and compatibility of playback on the vast majority of the nearly one billion consumer DVD players worldwide, all of which have built-in CSS support.
"Pioneer and Sonic have worked together with the goal of opening an exciting new channel for the distribution of video content that provides both copy protection for the content owners and compatibility for the consumer," said Sumitaka Matsumura, Executive Officer, Pioneer Corporation. "Through this joint licensing program, we can help content distributors and media and drive manufacturers bring their managed recording products to market quickly."
The Qflix patent portfolio and other associated IP relate directly to the new DVD for Download specification from the DVD Forum and the new CSS Managed Recording provisions of the CSS specification. Sonic, as Qflix license administrator, will offer reasonable and non-discriminatory licensing of those key patents and related IP. The Qflix program brings these technical initiatives to fruition by also including product and component certification to enable content owners, service providers, and manufacturers of recordable media, PC DVD writers, network-connected DVD recorders, set-top boxes, and software to create reliable, compatible, and interoperable DVD-on-Demand solutions. The program involves a broad set of services that includes detailed technical information as well as certification testing to enable media and drive manufacturers to create optical discs and drives for recording CSS-encrypted video and help ensure the best possible consumer experience.
"Interest in digital distribution of premium content is igniting, so now is the time to offer a vital technical solution that combines field-proven DVD content protection with the best DVD player compatibility," said Jim Taylor, senior vice president and general manager of Sonic Solutions' Advanced Technology Group. "The flexibility to burn CSS-encrypted DVDs on demand anywhere opens a new source of revenue to content owners, especially for 'long tail' content, and makes vast amounts of previously unavailable content easily accessible to consumers in the world's most popular format."
The rollout of DVD-On-Demand solutions marks the culmination of Sonic's three-year cooperation with movie studios, consumer electronics manufacturers, IT companies, and content distributors to establish a solution that allows digitally distributed premium video content to be protected and recorded to optical DVD media.
Qflix offers a new means for content owners to release titles for custom production and sale over the Internet while maintaining the same level of copy protection used on commercially mass-produced DVDs. Sonic's Qflix licensing program provides essential technology and a patent pool formed by Sonic and Pioneer for both the professional and consumer markets. Qflix Pro, for professional and enterprise on-demand manufacturing of DVDs, allows production facilities to reduce the cost of carrying physical inventory while simultaneously offering extensive catalogs of content. Qflix Pro also enables retailers to broaden the number of movies by augmenting physical product with on-demand DVD creation kiosks in their stores. The consumer version of Qflix provides a long-awaited downloading and burning solution for movies and premium video content in computers and consumer electronic devices such as set-top boxes, networked DVD recorders, and DVRs.
Sonic DVD On Demand is a complete solution for custom preparation and burning of DVDs in industrial, retail, and home environments. Sonic's Extensible Media Protection Architecture (XMPA) includes comprehensive Qflix support to enable secure electronic delivery and burning of video encrypted with CSS (the industry-standard Content Scramble System) to recordable DVD media.
For more information regarding the Qflix technology licensing program, please contact Qflix Licensing or visit.
Sonic Solutions (NASDAQ: SNIC; ) enables the creation, management, and enjoyment of digital media content through its Hollywood to Home™ products, services, and technologies. Sonic's products range from the advanced authoring systems used to produce Hollywood DVD, HD DVD, and Blu-ray Disc film releases to the award-winning Roxio®-branded photo, video, music, and digital-media management applications. Sonic's patented technologies and AuthorScript® media engine are relied upon by leading technology firms to define rich media experiences on a wide array of consumer electronics, mobile devices, set-top players, retail kiosks, and PCs. Always an innovator, Sonic has taken a leading role in helping professional and consumer markets make the successful transition to the new high-definition media formats and, through the Sonic DVD On Demand™ and Qflix™ platforms, Sonic is defining new models for the digital distribution of premium Hollywood entertainment. Sonic Solutions is headquartered in Marin County, California.
This press release may contain forward-looking statements that are based upon current expectations, including the distribution and market acceptance of Sonic DVD On Demand platform and the Qflix program. Actual results could differ materially from those projected in the forward-looking statements as a result of various risks and uncertainties, including those discussed in the Company's annual and quarterly reports on file with the Securities and Exchange Commission. This press release should be read in conjunction with the Company's most recent annual report on Form 10-K, Form 10-Q and other reports on file with the Securities and Exchange Commission, which contain a more detailed discussion of the Company's business including risks and uncertainties that may affect future results. The Company does not undertake to update any forward-looking statements.
Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home, Sonic DVD On Demand, Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used by Sonic Solutions under license.
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