PHOENIX--(BUSINESS WIRE)--Dec. 14, 2000--SunnComm Inc. finalized a seven-year (minimum) $20+ million dollar contract with Will-Shown Technology Co., LTD Taipei, Taiwan to provide audio copy protection for Will-Shown Manufacturing of audio compact discs.
The International Federation of the Phonographic Industry estimates that 90% of all compact discs sold in China are pirated discs costing manufacturers, distributors, and artists over $1 billion annually. "We are fortunate to have finally found such a cost-effective solution to our piracy problem," stated Joe Shih, president of Will-Shown.
"The SUN-X technology will integrate smoothly into our current manufacturing process and will not require us to invest or modify our production hardware."
According to the terms of the licensing agreement Will-Shown will be provided with the SUN-X Sentinel® "Mastering Suite" for MLX® copy protection, as well as full access to SunnComm's technical support staff to assist and supervise the installation of the software.
The license fees are based on a royalty payment to SunnComm Inc. on all of the products manufactured by Will-Shown that include the copy protection. Will-Shown has committed to manufacture a minimum of 87 million copy protected audio compact disc products, each of which will be uniquely identified with the SUN-X trademark.
John Aquilino, chairman and chief technology officer of SunnComm was elated at the finalizing of the contract. "We are excited that a company as significant as Will-Shown has stepped up to the plate in the effort to curtail Pacific Rim Piracy," Aquilino stated.
"Unless this piracy is halted we are faced with the potential decimation of the international music industry. No industry can survive the loss of billions in revenue due to the theft of its product."
Aquilino continued, "The good news is that our solution does not in any way alter the quality of the audio signal within the licensed manufactured product and there is no requirement to alter the manufacturing equipment itself. Music pirates will no longer be given carte blanche when it comes to the high quality copying of first generation product."
The minimum seven-year licensing agreement is effective on Jan. 1, 2001. Earlier this week SunnComm licensed its technology to American country music record company Fahrenheit Entertainment which is expected to begin rolling out its software technology in early 2001.
SunnComm Inc. owns patent applications designed to encrypt, compress, and copy-protect digital music, video and other intellectual digital properties as they are transmitted on the Internet, or recorded on compact discs or DVD.
The SunnComm patents and the continuing development of the technology offer the company proprietary opportunities within the entire entertainment and software industries, both nationally and internationally.
For more information, contact Mario Ike at National Financial Communications at 800/878-9460 or SunnComm Inc. at 602/267-7500.
Statements contained in this release which are not historical facts may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance.
Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements.