February 23, 1999

News Release from

NIPPON TELEGRAPH AND TELEPHONE CORPORATION
KOBE STEEL, LTD.



NTT, Kobe Steel develop secure digital distribution system
on Infoket platform for SolidAudio network player


TOKYO (February 23, 1999) -- NIPPON TELEGRAPH AND TELEPHONE CORPORATION (or NTT) and KOBE STEEL, LTD. have jointly developed a digital distribution system for audio data called "InfoBind." This system provides safe and secure network transmission of copyright material and prevents illegal copying by binding the contents in a media with an unrewritable media ID.

The distribution system utilizes a portable network audio player called SolidAudio, developed by NTT and Kobe Steel, and an information trading platform called Infoket, developed by NTT. The recording media used is the SmartMedia flash memory card, equipped with ID of its own to prevent illegal copying. From the network to the player and recording media, the system offers complete security and copyright protection in the distribution of digital contents.

As companies work toward establishing international standards, NTT and Kobe Steel plan to promote the digital delivery system, as well as support companies considering the content distribution business.

With the growth of the Internet, an increasing concern is the prevention of illegal copying. The advent of audio compression technology, such as MPEG 1 Layer 3, enables anyone to easily distribute music on the Internet, creating a strong need for content protection.

Conventional systems often bind the contents with user IDs or terminal IDs to prevent illegal copying. This restricts the users or terminals in replaying the contents. The new system provides total copyright protection from the network to the terminal and media by binding the contents with a media ID. The system overcomes the problems of conventional security systems from the point of usability and portability of the contents.


Features
In the InfoBind digital distribution system, the audio content is encrypted by using a media-specific ID and downloaded from the network onto a SmartMedia flash memory card. The SolidAudio player confirms the media ID and decrypts when it replays the contents. The system is noted for the following features:

1. Only data received from proper, legal channels can be replayed on SolidAudio. The system prevents illegal modification and illegal copying of contents.

2. The InfoBind system also prevents the distribution of unauthorized contents.


Technical points
1. Contents are encrypted with an unrewritable media ID and recorded onto the media. Encrypted contents cannot be replayed on other recording media even if digitally copied.

2. As the digital signature of the server is added to the encrypted contents, forgery or alterations can be detected.

The SolidAudio player offers consumers the same portability and convenience as CDs. As with CDs and media that do not require encoding, SolidAudio players and compatible terminals will enable consumers to freely replay the contents at any terminal. The system can separate contents distribution, such as distribution via digital broadcasting, DVD (digital video disk) and other media, and key delivery to each user via the Internet. By using NTT's Infoket information trading platform, the key delivery server supports credit card settlement and micro-payment, which is suitable for digital contents sale, and contents sales management and operation functions.



Glossary

SolidAudio -- A credit card-size network audio player. Incorporating semiconductors, the player contains no moving parts. SolidAudio uses NTT's TwinVQ high performance audio compression technology which reproduces CD quality sound. Designed by Kobe Steel, SolidAudio is the world's smallest and lightest audio player, measuring a little over 8 mm in thickness and 45 grams in weight.

Infoket -- Short for "Information Market," this electronic commerce platform developed by NTT offers safe and secure distribution of information. The system includes a clearinghouse that authorizes and processes transactions, such as credit card settlement and micro-payment. The system has been applied at numerous electronic publishing and software distribution sites in Japan.

SmartMedia -- Developed by Toshiba Corporation and proposed as a next generation, NAND-based flash memory card. This small, removable card is used in digital still camers and portable file storage devices.

MPEG 1 Audio Layer 3 -- This ISO-standard audio software technology enables audio data to be compressed at ratios of 1:10 to 1:12. It is also generally known as MP3.



Business contact at NTT
Multimedia Business Dept.
Kazuho Arita or Junya Inoue
tel +81 3 3277 8842

Technical contact at NTT
NTT Information Sharing Platform Laboratories
Terunao Soneoka or Nobuhisa Miyake
tel +81 422 59 3361

Media contact at Kobe Steel
Gary I. Tsuchida
tel +81 3 3218 6055

Technical & business contact at Kobe Steel
Electronics & Information Technology Laboratory
Yoshiro Nishimoto or Takashi Morita
tel +81 78 992 5653




News Release Mark
NTT NEWS RELEASE