Disclaimer: The following is provided for general information purposes only. Those engaging in any of the mentioned or similar pursuits should seek the advice of competent legal counsel. Information contained in this document has been obtained from sources believed to be reliable. The author does not warrant the accuracy or completeness of such information. Responsibility for the use of the contents shall remain with the user and not with the author.

Whether we acknowledge, like, or even understand them, we all have obligations. Traditionally, legal responsibilities for videographers, photographers, filmmakers, and service bureaus fall along the lines of managing copyright interests as well as privacy and publicity rights. Distributing digital audio, video, text, and still images, either electronically or on physical media, often involves equally important patent, trademark, and other intellectual property considerations.

Since most digital delivery methods incorporate a host of technologies from any number of unrelated sources, identifying and making sense of these requirements can be daunting for the small-shop practitioner. Certainly this is the case with Blu-ray Disc (BD), which is made possible through the efforts of dozens of companies and is promoted, protected, and administered by multiple bureaucracies.

When working with Blu-ray, the need to enter into and comply with various license agreements differs depending upon the circumstance. For example, while the Advanced Access Content System (AACS) must be used to encrypt all replicated/pressed BD-ROM AV (BDMV) authored titles there is no such requirement, and all it entails, for duplicated/recorded discs. Since most videographers and duplicators deal in single or (at most) a few hundred discs at a time, I have confined this discussion to situations where BD content is distributed on writable rather than pressed discs (a topic for a future column).

Pro Logo
The simplest way to let the world know about your BD video services is to mention Blu-ray by name or—better still—by displaying its official logo on your website and promotional material. But, before you do, appreciate that both are trademarks and, as such, cannot be exploited indiscriminately.

Specifically, while the Blu-ray Disc name may be employed freely, those who wish to use its logo must first receive written permission from the Blu-ray Disc Association (BDA) License Office, an entity responsible for managing and policing fundamental Blu-ray technical and legal agreements. This consent is available, at no charge for an indefinite term, to advertise and promote BD products and technology by executing a Logo License Agreement (LLA).

Further, the Blu-ray Disc name and its logo must be used in compliance with a set of rules also published by the BDA License Office. For example, in its text form, "Blu-ray Disc" should be printed as such (not "Blu-Ray Disc," "blu-ray disc," "BLU-RAY disc," etc.), and its logo should appear within its specified shape, legibility, color, size, clear zone, and prominence guidelines. Additionally, proper trademark notification must be given by affixing the characters "TM" to the logo or by written means such as the statement "‘Blu-ray Disc’ and its logo are trademarks." (A PDF of the "Blu-ray Disc Logo Guide" can be viewed here.)

Also keep in mind that other trademarks, service marks, and logos, such as those from Dolby Laboratories and DTS, carry their own imperatives.

Paying the Video Patent Piper
Beyond trademarks, a multitude of companies, groups, and institutions claim and exercise patent rights in all corners of the Blu-ray universe. While Blu-ray is sometimes regarded as a "Sony format," the Blu-ray patent picture is far larger than any one company, and is even more complicated than the situation for DVD.

In particular, it is the position of MPEG LA, an independent licensing administrator representing the collected interests of dozens of patent holders, that those distributing digital video encoded in MPEG-2, MPEG-4 AVC/H.264, or VC-1 formats, on any type of physical media (BD, DVD, flash memory, magnetic tape, etc.), obtain from MPEG LA a corresponding patent portfolio license. This includes all legal entities (no exceptions) selling or giving away (arms-length) any quantity (no minimum) of discs. These agreements are non-exclusive so it is possible, although impractical, to individually negotiate with each licensor for the right to use its patents. Typically, the party writing/duplicating the discs acquires the license(s).

Under each MPEG LA agreement, licensees must accrue and remit specified royalties (see Table 1, below) on a semiannual basis, keep records, consent to audits, and the like. (To view details of each format, visit the MPEG LA website.)

Further, executing a given license triggers the obligation to pay back royalties plus 10% interest per year within 30 days of signing for past uses of the codec. For example, obtaining an MPEG-2 license requires payment for not only all infringing BDs previously sold or given away but payment also for every DVD-Video disc, D-VHS tape, and other relevant physical media and other use (dating back to June 1, 1994). Individuals and enterprises that choose not to obtain a license "risk the possibility of a patent lawsuit," according to Bill Geary, vice president of business development for MPEG LA.

Be aware, however, that while MPEG LA’s portfolio licenses may be comprehensive, they are not exhaustive and include only essential patents. Thus, it is possible that other parties may be due royalties. For example, many of the participants of a rival, and now abandoned, MPEG-4 AVC/H.264 joint patent licensing program administered by Via Licensing Corp. are not included in MPEG LA’s offering.

Blu-ray Disc Royalties
Complicating matters further is the reality that many patent holders have yet to declare their Blu-ray-specific licensing intentions. Seeking to avoid DVD’s complex multi-agent system (DVD6C, 4C, 3C, 1C, etc.), at least 18 stakeholders are currently working to establish MPEG LA as a one-stop BD licensing authority. However, it is unclear how successful this effort will be regarding the scope, terms, and rates of any possibly ensuing programs. For example, will royalties be sought when distributing BD-ROM AV (BDMV) or BD-R/RE AV (BDAV) content on recordable or rewritable discs (BD-R/RE and DVD±R/RW/RAM)? From whom? Any exemptions? Thresholds? Amounts?

"It is not yet decided how this will be handled," says Geary, who is responsible for MPEG LA’s Blu-ray and other new patent pools. "But it’s likely to be addressed either in connection with the blank disc or as a charge to the duplicator." Until more information is forthcoming, it is difficult to know how to proceed. However, rather than gambling on what might eventually unfold, it may be prudent to estimate and begin accruing funds immediately to cover any back royalties, interest, penalties, and taxes that might be assessed in the future.

Look Before You Leap
A brave new world of creative and business opportunities may await content producers and service bureaus willing to embrace Blu-ray Disc. But in addition to making equipment and marketing decisions, individuals and enterprises should also seek competent legal advice to survey the landscape and determine where they should proceed with caution.

Hugh Bennett (hugh_bennett at compuserve.com) is president of Forget Me Not Information Systems, Inc. and the author of EMedialive's Authoritative Blu-ray Disc (BD) FAQ.

The Authoritative Blu-ray Disc (BD) FAQ Has Moved!

Hugh Bennett’s The Authoritative Blu-ray Disc (BD) FAQ has moved to its new home at Hugh’s News (www.hughsnews.ca).

It can now be found at: www.hughsnews.ca/faqs/authoritative-blu-ray-disc-bd-faq

CyberLink Corp. (5203.TW), innovative solutions provider for the connected digital lifestyle, today announced that CyberLink PowerDVD has received certification for two advanced features of the Blu-ray Disc format—BD-Profile 2.0 (BD-Live) and AVCREC—confirming PowerDVD’s support for the playback of interactive BD-Live movie content and high-definition MPEG-4 AVC (H.264) content stored on DVDs.

PowerDVD supporting BD Profile 2.0 (BD-Live) format allows Internet-connected activities such as multiplayer gaming, e-commerce, the downloading of movie trailers and subtitles, as well as social networking. These features provide PowerDVD users with more ways to enjoy movies. Supporting AVCREC format enables PowerDVD to playback the recording of high-definition video onto DVD recordable discs using the MPEG-4 AVC (H.264) format. With the growing popularity of high-definition video camcorders and video editing software, users are able to produce their home movies in high-def formats, or record HDTV programs, and playback their recorded high-definition video with PowerDVD.

“PowerDVD is constantly progressing PowerDVD with the latest Blu-ray technologies,” said Alice H. Chang, CEO of CyberLink. “We are happy to be certified with the latest Blu-ray disc development offering our users the best in high-definition entertainment on their PCs.”

CyberLink offers a complete line of software for the Blu-ray Disc format, ranging from high-definition video playback, to video editing and authoring, and burning data onto Blu-ray Discs.

Product Availability
CyberLink PowerDVD with support for BD-Live and AVCREC formats is available for purchase online. Existing PowerDVD 8 users can update their software for free.

www.cyberlink.com

Disc Makers, the leader in optical disc manufacturing for independent artists, filmmakers, and businesses, is pleased to announce its 2008 Summer Special -- 50 Free Discs Promotion. Every customer who orders at least 300 replicated CDs, DVDs or CD-ROMs will receive an additional 50 discs for no extra charge. The special applies to all replication orders of 300 or more discs placed between 7/1/08 and 8/29/08.

"Everyone loves a good deal, especially when the economy is so unstable "said Tony van Veen, President of Disc Makers. "That’s why we want to help our customers by offering 50 extra discs to sell, giveaway, or use for promotional purposes. If an artist sells these extra 50 discs for just ten bucks each, it’s an additional $500 in their pocket!"

Disc Makers’ ran a similar promotion a few years ago to celebrate its 60th anniversary. The response was overwhelmingly positive as independent musicians and filmmakers throughout the US took advantage of the free discs to sell or give away.

Disc Makers’ 50 Free Discs promotion can be combined with all other replication specials, including 300 posters for $99 or 24 T-Shirts for just $99, allowing all Disc Makers independent artists the tools to promote their work.

www.discmakers.com

Corel Corporation (NASDAQ:CREL; TSX:CRE), a leading developer of graphics, productivity and digital media software, today announced that Corel® WinDVD® and DVD MovieFactory® are bundled with Lenovo’s new consumer line of IdeaCentre Blu-ray Disc® desktop computers. With Corel’s award-winning WinDVD and DVD MovieFactory, the IdeaCentre can now author and play back Blu-ray Disc movies and video with the latest high-definition effects including Dolby® Digital and DTS® Surround Sound.

“We are pleased Lenovo has selected WinDVD and DVD MovieFactory for its new consumer desktop series,” said James Carrington, Senior Director, OEM and Strategic Product Marketing at Corel. “An increasing number of consumers are making the switch to HD, and with Lenovo’s IdeaCentre Blu-ray Disc desktop computers, users will find a superior HD authoring and playback experience for their home movies, as well as state-of-the-art viewing for the latest Hollywood releases.”

The Lenovo IdeaCentre Blu-ray Disc consumer desktop computers with Corel’s WinDVD and DVD MovieFactory are available now.

www.corel.com

On May 19, 2008 at 1:05 p.m. the six billionth optical data carrier in Europe came off the production line at arvato digital services in Gütersloh. The disc in question is entitled Shaun the Sheep – Saturday Night Shaun – for the customer Concorde Home Entertainment.

Digital data carriers have been produced at arvato digital services since 1984. The Gütersloh factory started with the CD, followed by the DVD in 1997 and recently the new Blu-ray Disc. In Europe over 3 million data carriers are produced for a renowned customer base from a range of industries. “We have had a close customer relationship with Concorde Home Entertainment over many years. Shaun the Sheep – Saturday Night Shaun is the third part of the cult series and we have already produced well over 300,000 units for this series,” says Sven Deutschmann, CEO arvato digital services Manufacturing EMEA.

Shaun the Sheep – Saturday Night Shaun – is the third DVD featuring Europe’s most popular sheep. In eight seven-minute episodes Shaun shows all the things he can do. With his virtually inexhaustible energy and a whole series of bizarre incidents he keeps all of the inhabitants of a quiet little farmhouse on their toes. His hilarious adventures will appeal to viewers of all ages thanks to the artistic genius of the world-famous Aardman Animations (including “Wallace & Gromit”) in co-production with the BBC and Westdeutscher Rundfunk.

While children will be fascinated by the easy-to-follow stories and the cute characters, adults will enjoy all the allusions to classic films – like “Rocky”, “Star Wars” or “Jaws”.

www.arvatodigitalservices.com

TapeOnline, an online leader for blank recording media, adds LaCie hard drives and Sony SxS solid-state memory cards and accessories to their online store. TapeOnline has added Sony flash memory cards and LaCie hard drives to their extensive inventory of recording media related products -- blank DVDs, MiniDV tape, Blu-ray Media, professional videotape, data backup tape, disc publishers, and others. The new products can be found on TapeOnline’s website (www.tapeonline.com.

SxS Pro Memory, Sony’s new tapeless media, is a flash memory card based on the ExpressCard standard, a new and improved version of the PC card. SxS cards are compatible with Sony’s new XDCAM EX series professional camcorders and provide HD recording, fast transfer rates, and increased workflow efficiency. Currently, TapeOnline sells 8 and 16 gigabyte capacity cards, and a 32 gigabyte version will be available soon. TapeOnline also sells the SxS ExpressCard reader that hooks up the solid-state cards to any computer via USB.

“We’re always on the lookout for new technology,” says Emily Feller, Purchasing Manager at TapeOnline. “The new LaCie drives and Sony cards are just the latest in a long line of high-tech products that we carry in addition to our traditional media offerings.”

New LaCie items at TapeOnline include the Rugged Hard Drives, d2 Quadra Hard Disks, and the Ethernet Big Disks. Rugged Hard Drives provide anywhere from 160 to 320 gigabytes of storage space. These portable hard drives combine both form and function. They’re extremely durable, compact, and stylish. They can easily fit in a purse or computer bag.

The d2 Quadra hard disks have a vast storage capacity, up to 1 terabyte with the model 301827U. Weighing less than four pounds, the d2 Quadra drives offer 4 interfaces, eSATA, FireWire 400/800, and USB 2.0, for maximum compatibility. Plus, the drive is extremely quiet because of its fanless cooling system.

The Ethernet Big Disks live up to their name with enormous capacity, up to 2 terabytes, that’s fully networkable at gigabit speeds. They’re easily managed from any compatible browser to allow authorized access to multiple users and shared data folders.

Reasonably priced, the 160GB Rugged Hard Drive is $125, while the 2 terabyte Ethernet Hard Disk is only $573. Sony SxS cards start at $476 for the 8 gig version and $855 for the 16 gig model.

About TapeOnline.com
TapeOnline.com is an authorized dealer for Sony, Fujifilm, Maxell, Imation, Microboards, Rimage, and others. TapeOnline provides an extensive inventory of blank media, audio, video, data products, duplicators, burners, labels, bulbs, batteries, and related accessories at competitive prices locally and worldwide. With warehouses in both Dallas and Nashville, TapeOnline is able to keep costs low and ship products fast.

Sony Creative Software, a leading worldwide provider of professional video and audio production applications, today announced new versions of its award-winning Vegas Movie Studio consumer video production software. Vegas Movie Studio 9, Vegas Movie Studio 9 Platinum Edition and Vegas Movie Studio 9 Platinum Pro Pack for the PC will be available in stores and online this August. Sony Creative Software is also introducing Vegas Movie Studio 9 and Vegas Movie Studio 9 Platinum Edition at new lower prices.

"As video has become a popular medium for all age groups to enjoy and share on the Internet, the Vegas Movie Studio 9 line of products was designed to address customer demand for simple, end-to-end video production at home that works seamlessly from the camcorder, to the software and ultimately to a variety of destinations for sharing," said Dave Chaimson, vice president of global marketing for Sony Creative Software. Whether it's a camera full of still photos, or footage from your cell phone, our products provide the best solution for creating the perfect montage from all of your media in one, easy-to-use, reliable application."

"With the high-definition (HD) workflow application in Vegas Movie Studio 9 Platinum Edition, our unique Sony synergy ensures that working with HD is simplified from start to finish whether it's working with native AVCHD footage direct from the camcorder, or burning movies to Blu-ray Discs directly from the project timeline," Chaimson continued.

Enhanced Project Wizards Speed Movie Creation and Sharing
Vegas Movie Studio 9 software contains new import and export project wizards to help consumers get started making their movies even faster and also helps with outputting projects to the proper formats for sharing across a range of delivery options. Sony Creative Software's exclusive Show Me How interactive tutorials are also included to help users learn the software more efficiently while completing the task at hand. The Show Me How tutorials make it easy to complete a project step-by-step and are not found in any other consumer video editing product.

Cinescore Studio Soundtrack Creation
Developed from the professional version of Cinescore software, the Cinescore Studio royalty-free soundtrack application is now available exclusively in the Vegas Movie Studio 9 product releases to help consumers create the perfect mood for every movie. A breakthrough in soundtrack creation, Cinescore Studio software provides customizable capabilities to automatically create your own music for videos. Cinescore Studio software is an easy way for moviemakers to match a musical theme to their project without needing to worry about any copyright issues. A number of themes and variations are included with the software for infinite ways in which to create the perfect score.

Click and Share Online and on DVD
Vegas Movie Studio 9 and Vegas Movie Studio 9 Platinum Edition software offer users their own integrated home desktop production studio as they create and share video that can be output to numerous media formats, which includes direct publishing to YouTubeTM, direct output to an email attachment and formatting for portable music and media players to share creations easily on screens large and small. DVD Architect Studio 4.5 software is also included with the Vegas Movie Studio 9 applications to make creating professional-looking standard definition DVDs and widescreen productions fun and easy.

Full HD from Start to Finish
Optimized for complete high-definition home studio production, Vegas Movie Studio 9 Platinum Edition can burn Blu-ray Discs directly from the project for easy Blu-ray Disc publishing. The application also features tools for importing high-definition footage, including native import functionality for Sony, Canon and Panasonic AVCHD camcorders and expanded import options for the newest high-resolution Sony AVCHD 1920 format. Additional format support in Vegas Movie Studio 9 Platinum Edition includes MPEG-2 smart rendering for faster output, high quality audio compression for Sony Walkman and Apple iPod, as well as support for tapeless HDV footage transfers.

Pro Pack Offers Advanced Tools for the Home Studio
In addition to the Vegas Movie Studio 9 Platinum Edition software, the new Vegas Movie Studio 9 Platinum Pro Pack features software and content for enhanced professional production, including applications for audio mastering, video transitions and special effects. Additional Sony Creative Software applications featured in the Pro Pack are Sound Forge Audio Studio, additional Cinescore themes, and 1001 Sound Effects. Also included are NewBlue 3D Transitions and Effects and for a limited time, a 2 GB Sony Microvault USB flash drive.

Price and Availability
Vegas Movie Studio 9 Platinum Pro Pack (MSRP U.S. $129.95), Vegas Movie Studio 9 Platinum Edition (MSRP U.S. $99.95), Vegas Movie Studio 9 (MSRP U.S. $69.95) will be available this August in North America. Localized versions of all products for Japan, Germany, France, Spain, and the UK will be available later this fall.

For more information about these software applications or any of Sony Creative Software's leading audio or video editing solutions, please visit www.sonycreativesoftware.com.

Even in light of a small decrease in overall consumer spending on DVD, the approximately $24 billion home video market continued to be the largest segment of consumer movie spending by far, accounting for 49% of all consumer movie spending in 2007. In the video game market, game software sales increased 34% in 2007, to a total of $8.6 billion. These and other noteworthy findings gathered from a variety of authoritative sources are included in the 2008 Annual Report on the Home Entertainment Industry, released today by the Entertainment Merchants Association (EMA).

"Consumers remain enamored with DVD and video games even as they incorporate new forms of entertainment media into their consumption patterns," noted Bo Andersen, President and CEO of EMA. "New generations of hardware and software, and alternative delivery channels, will ensure that home video and video games remain phenomenally popular entertainment options for the American public for years to come."

Other interesting facts contained in the report:

• Home video generated $15.9 billion in sales and $8.2 billion in rentals in 2007.
• Nearly 9 million high-definition discs were sold in 2007, for which consumers spent more than $260 million.
• There were 12,177 DVDs released in 2007, down from a peak of 13,950 in 2005.
• It is estimated that, in 2012, sales of Blu-ray Discs will exceed those of standard DVDs and will generate sales of $9.5 billion.
• Home video spending is projected to increase to $25.6 billion in 2012.
• Traditional rental stores, dominated by Blockbuster, accounted for 73% of the rental business in 2007. Online subscription rental (such as Netflix and Blockbuster's Total Access) were 25% of the market.
• Kiosk rental doubled its market share to 2%.

The 2008 Annual Report on the Home Entertainment Industry provides comprehensive data on and analysis of sales and rentals of DVDs, Blu-Ray Discs, video on demand, computer and console video games, and competing technologies. The report may be purchased from EMA:
http://www.EntertainmentMerchantsAssociation.org

EMA is the not-for-profit international trade association dedicated to advancing the interests of the $33 billion home entertainment industry.

Newer Technology, Inc. (NewerTech), the leading developer of PC, Macintosh®, iPod®, and iPhone® performance upgrades and accessories, today announced the new Guardian MAXimus 300GB 10,000RPM "Triple Interface" FireWire 800/400/USB 2.0 model, the fastest and most reliable Plug & Play RAID-1 mirror external storage solution available on the market for consumers and business professionals alike.

Delivers Fastest Data Backup/Protection
The new Guardian MAXimus 300GB 10,000RPM offers users of all levels and operating systems the fastest, most reliable method to back-up and store critical data with Plug & Play ease. Always guarding against data loss and costly system downtime, Guardian MAXimus writes the same information in real-time "live activity" to two 300GB 10,000RPM drives for a "mirrored" copy. The Guardian MAXimus 300GB 10,000RPM utilizes the Western Digital VelociRaptor™, the fastest SATA drive on the market, with data transfer rates up to 100MB/s, OS X "Leopard™" Time Machine readiness, and a "Triple Interface" of two FireWire 800, one FireWire 400, and one USB 2.0 ports to provide the performance, flexibility, and reliability required for demanding audio/video, photo-editing, and 3D rendering applications.

Exceeds Enterprise-Class Quality with Highest Reliability Rating
With its two mirrored 300GB drives, each offering up to 1.4 million hours MTBF (Mean Time Between Failure), the Guardian MAXimus exceeds enterprise-class standards with the highest reliability rating found in high capacity SATA drives. Additionally, the 300GB 10,000RPM model is covered by a two year warranty on the complete solution and an additional 3 year warranty on each drive.

Plug & Play Simplicity
Guardian MAXimus provides the security of a highly reliable RAID 1 hardware-based storage solution at a low price. And unlike high-priced, hard to configure RAID 1 corporate storage common in high-end servers, Guardian MAXimus is FireWire/USB Plug & Play easy, so no controller cards, software configuration, or driver downloading is required. Guardian MAXimus can access data via any of its supported interfaces or move between different computers utilizing those interfaces with complete interoperability.

Guardian MAXimus 300GB 10,000RPM Features:

• 300GB, 10,000RPM Dual-Drive Solution.
• 32MB of drive cache (16MB per drive).
• Custom Oxford 924 Based Bridge Solution.
• 2 FireWire 800 9 pin ports.
• 1 FireWire 400 6 pin port.
• 1 USB 2.0 "B" port - backwards compatible with USB 1.1.
• Front panel drive status LEDs.
• Quiet operation.
• RoHS certified.
• 9.3" x 2.8" x 5.6" size, shock-resistant for maximum portability.
• US/International 90~240V 4.2A UL-listed power supply.
• FireWire 800, FireWire 400, and USB 2.0/1.1 double shielded connecting cables included.
• Compatible with Apple OS 8.6 to 9.2.2, OS X 10.1.x and later (10.2 or later required for FW800 and USB 2.0), and Windows ME and later operating systems.
• Includes ProSoft Engineering® Data Backup 3, NovaStor NovaBACKUP®, and Intech® SpeedTools Utilities™ software (a $200 retail value).

• 250GB Mirror (250 + 250) 7200RPM w/32MB total buffer $259.99
• 320GB Mirror (320 + 320) 7200RPM w/32MB total buffer $289.99
• 400GB Mirror (400 + 400) 7200RPM w/32MB total buffer $329.99
• 500GB Mirror (500 + 500) 7200RPM w/32MB total buffer $379.99
• 750GB Mirror (750 + 750) 7200RPM w/64MB total buffer $439.99
• 1.0TB "eMax" Mirror (1.0TB + 1.0TB) 5400RPM w/64MB total buffer $549.99
• 1.0TB Mirror (1.0TB + 1.0TB) 7200RPM w/64MB total buffer $639.99
• 300GB Mirror (300 + 300) 10,000RPM w/32MB total buffer $899.99

Guardian MAXimus 300GB 10,000RPM is available immediately, priced at $899.99 MSRP from NewerTech’s exclusive distributor, Other World Computing, as well as through the retail channel. For more information, see http://www.newertech.com/products/gmax.php.