Bertlesmann Launches Digital Rights

Bertelsmann AG Tuesday announced the formation of its own digital rights
management company, Digital World Services.

The program is intended to provide end-to-end solutions
and services in all areas of digital rights management. It will use InterTrust’s digital rights management
platform technology and Reciprocal Inc for a scalable and global backend
service. Among the range of services offered by Digital World Services and
its partners is content preparation and secure packaging, usage and financial
clearing, as well as system integration tailored to specific customer needs.

Digital World Services is dedicated
to ensuring the secure online protection and delivery of all types of digital
content, said Johann Butting, chief executive officer of Digital World Services.

“Establishing Digital World Services, with innovative packaging and
clearinghouse capabilities, is a natural progression for Bertelsmann as we
conduct business in the 21st century,” said Butting. “Our digital commerce solutions take advantage of the
combined strengths of many Bertelsmann divisions to enable content owners to
increase their customer base and improve revenue, while providing a
compelling and seamless consumer experience.”

Digital World Services is a joint venture of three of Bertelsmann’s six
divisions: BMG which holds its share in the venture through its CD
manufacturing arm BMG Storage Media; Bertelsmann Multimedia, which handles
all of Bertelsmann’s Internet activities, including AOL and Lycos in Europe;
and Arvato AG where Bertelsmann’s print and logistics activities are focussed
and which includes Bertelsmann Services Group with expertise in financial
clearing, distribution, and call center operation.

Digital World Services is one of the founding members of the Secure Digital
Music Initiative (SDMI) and assists in the development of international
standards for securing music across digital delivery platforms.

Digital World Services is set to debut at the MIDEM 2000 conference on January 22
in Cannes, France.

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