InterTrust Scores $28 Million Sony Deal

Anti-piracy software firm InterTrust Technologies on
Thursday announced a $28.5 million patent licensing deal with Sony Corp., a
transaction that sent its stock soaring.

The Santa Clara, Calif.-based InterTrust said Sony would
pay $28.5 million for a license to uses its Digital Rights Management (DRM)
software, which is used to deter music piracy.

The value of the transaction has the potential to be much higher since
InterTrust would be collecting royalties for future Sony products and
services that integrate its anti-piracy software patents.

Investors applauded the pact, sending InterTrust stock soaring more than 43
percent in mid-morning trading. InterTrust stock, which opened the day at
$1.25, reached $1.79 at press time.

The intellectual property licensing pact would run across Sony’s media and
electronics business units and would be used for the development,
manufacture and marketing of digital media products and services, the
companies said.

“We are delighted that Sony, the world’s leading consumer electronics
provider, will use our inventions to develop new formats and platforms for
electronic media distribution. I believe that this agreement will help
enable the next phase of market development for consumer media,” said
InterTrust CEO David Lockwood.

The Sony pact is a breath of fresh air for InterTrust, which was forced to
cut staff by as much as 70 percent to keep fiscal losses in check. The
company has recently discontinued product sales and announced plans to focus
strictly on patent licensing deals.

InterTrust lays claim to 24 U.S patents for DRM rights software that covers
digital media and Web services platforms.

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