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Protecting Digital Music Distribution

Boot Camp feature for Monday, May 2, 2005

Digital music distribution. Bloomberg Boot Camp, a report on today's technology. The recording industry has been battling what could be called digital music distribution for years. The copying and sharing of digital music is still a big problem even though companies like Apple and Microsoft have made strides with their software trying to curb it. But there is a legal form of digital music distribution….created by a company called Musicrypt…that record companies are using to securely send files to radio stations. Co-founder Cliff Hunt says in the past…those shipments of advance CDs…have resulted in songs being leaked and copied…

"Once a record is leaked, three or four months before its planned market launch, it undermines the whole market opportunity to sell it."

So Muscrypt developed software that locks songs to specific individuals at radio stations…

"What we do is incorporate a biometric which identifies the user by their keystroke dynamic. And we've actually just been granted the patent for this system in Canada and our patent is pending in the United States."

Where Musicrypt is winning support from some of the biggest names in the recording and radio industries. Could the same technology be used to distribute music to consumers?

"You know it's conceivable. We focused on the business to business aspect. Right now it looks like Apple and the iPod seem to have the consumer market."

And Musicrypt does not intend to challenge Apple. Bloomberg Boot Camp, I'm Fred Fishkin.